Kidults

OPP

Joe failed. Twice, actually, he says.

“I moved back in with my parents in my twenties after a business failure (he’s a decade older now) and it was possibly the worst move I have ever made.”

Wait. How can this be? Being a Boomerang kid or a ‘failed-to-launch’ member of ‘Generation Screwed’ is big these days. A recent bank survey found a whopping 43% of Canadian parents with adult children not in school have allowed their spawn to stay at home rent-free. A third have helped the kids make a major purchase, like a car, while a quarter pay down their credit cards. Even four years ago more than 25% of all adults between the agents of 25 and thirty were living in their folks’ basements, according to Stats Can. And there’s reason to believe things are worse lately. So, obviously, this is a social phenom.

But back to Joe.

“In hindsight I should have sucked it up and eaten kraft dinner for two years and stayed independent. The saved rent/mortgage payments didn’t even come close to compensating for the psychic damage inherent in harming my excellent relationship with my parents, my reduced sense of self-worth, and diminished social life,” he confesses.

Advice, Joe?

“Any millennial considering a move back home should first cut their cable, internet, car loan, shopping at Whole Foods, buying import beer, skinny jeans, etc. If their best alternative option is then still living in a van down by the river, then move back in with mom and dad (maybe). Otherwise, don’t do it.

“You often make the points on the blog that good financial decisions mean freedom, and that time is the most precious commodity of all, and I agree on both points. If young people are counseled to sacrifice freedom and time for money, I would argue the advice is completely opposite to what they should be told. You chase the almighty dollar to gain time and freedom later, not the other way around. Sacrificing comfort or material things in the short term is smart and disciplined. Trading precious time and freedom for money misses the point entirely.”

It’s hard to argue with this. Delaying adulthood so Mom can wash your skivvies, feed you and spare you rent while you pay off student debt and retreat to the womb is an utterly bad decision. It may be less stressful to pretend you’re twelve again, but it does nothing for your credit rating, financial experiences, sense of self-worth or to build survival skills. Almost as bad is the Bank of Mom & Dad, shoveling free money into the downpayment on a piece of real estate you would not otherwise be able to afford.

Why? Because that’s not how the rest of life works. It saddles you with unrepayable debt. It robs you of the freedom and flexibility youth should enjoy. And it screws up the housing market for everybody else. After all, without that parental subsidy real estate prices might have plateaued years ago for want of first-time buyers, instead of continuing to wildly bloat. (More on today’s news, below.)

But there’s a darker side to this FTL thing: the impact on the wrinklies.

Face it, your folks aren’t as rich as you think. And they won’t talk about it. The inability of parents to be honest with their kids about finances is legendary. Between 60 and 70% of them have no defined corporate pensions to rely on and, if lucky, will end up with some employer-matched RRSP fund full of dead-end mutuals. Half of all families are living paycheque-to-paycheque, and over 90% of TFSAs aren’t maxed. RRSP contributions have been dropping off a cliff, and household debt’s rising at three times the inflation rate. More and more, wealth is being concentrated in a single, over-inflated asset, leaving so many Boomers dangerously undiversified and with oodles of market risk.

And now they have to feed and finance a 28-year-old? Or two?

Twenty years ago I wrote a book called “2015, After the Boom” which forecast the mother of all retirement crises, starting about now as the hippie love children began turning 65 in droves. Too much wealth would be concentrated in houses, I surmised, with way too little in financial assets to support lives which would grow ridiculously, tediously long. And here we are. Right on schedule.

But what was unknown then was that half an entire generation would end up in the basement – siphoning off cash flow, preventing downsizing, chewing through retirement savings and expecting free loans. One generation being financially crippled so the next can be coddled, then prematurely indebted.

Here’s something else unknowable at the time: we’d get a government that pimps houses.

Just days after proposing a permanent reno tax credit so this great nation can get more desperately-needed hot tubs and Wolf stoves, the Harper Conservatives have announced a massive 40% increase in the RRSP Home Buyer’s Plan. By allowing a couple to now siphon $70,000 from their retirement savings instead of just $50,000, the Tories are blowing heaps more air into our bulging gasbag of a housing market, ensuring prices will continue to rise (and affordability fall), plus reinforcing the message that saving is silly and debt’s good.

And just to cap it off, a commitment to witch-hunt foreign buyers of Canadian houses – conveniently ignoring the real reason properties are stupid expensive. Like CMHC. Like the Bank of Canada. Like unregulated realtors. Like the home renovation credit and the Home Buyer’s Plan.

The next generation can’t mature fast enough. This one’s a disgrace.

286 comments ↓

#1 Solution on 08.12.15 at 5:18 pm

Vote for Harper.

Everyone else has been discredited as incompetent to run the Canadian economy in a responsible manner.

#2 Never gonna end on 08.12.15 at 5:19 pm

Ha, the crash really isn’t going to happen is it? We’ll be dead long before the can is kicked into the cul-de-sac.

I waited and waited and rented and rented, and I’ve missed out on years of payments and ownership and appreciation. For what? I have nothing to show for it, even a 30% correction would put houses back to what they cost back then, and I’ll have lost 5 years of equity.

I truly am the Greatest Fool! :(

#3 TurnerNation on 08.12.15 at 5:20 pm

Here I sit broken hearted tried to short but only started.

#4 Axehead on 08.12.15 at 5:21 pm

Failure is good; you learn things from it. I once heard a corporate president of a major petro-chemical plant say that the greatest asset he brings to the table is his failures. 19 years old for boys and 21 for girls, max, for staying at home. After that, they’re squatting and not contributing.

#5 SunShowers on 08.12.15 at 5:22 pm

“Harper Conservatives have announced a massive 40% increase in the RRSP Home Buyer’s Plan. By allowing a couple to now siphon $70,000 from their retirement savings instead of just $50,000”

I’m not sure who they’re trying to target with this bribe.

Since savings rates are so dismal, not many first time home buyers have $70k in an RRSP. The ones that do, probably know better than to buy a house with things as they are now.

#6 blue steel on 08.12.15 at 5:24 pm

Re: Solution

Your sarcasm is fantastic.

#7 zee on 08.12.15 at 5:32 pm

Hey Garth

Like I said some time ago, the govt will continue to encourage home ownership and will not let housing market go down. You did not agree but here you have it with some of the news from Harper govt.

Because Canada is so small population wise the govt can always take steps to prevent any major correction from happening.

#8 Drill Baby Drill on 08.12.15 at 5:32 pm

The millennials will be moving home in droves as the oil price crunch continues. Hell even the Baby Boomers will be moving in with Grandma because they have insufficient funds due to their layoffs.

#9 Bytor the Snow Dog on 08.12.15 at 5:37 pm

@blue steel:

You beat me to it. Post #1 HAS to be sarcasm, right?

Right?

#10 Small_Town_Steve on 08.12.15 at 5:38 pm

I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.

#11 Never gonna end on 08.12.15 at 5:39 pm

Any chance the NDP/Liberals will go against this plan? This seems like every party will puppet the same idea to avoid looking “anti-middle class”

Losing Hope!

#12 Ashamed to be conservative on 08.12.15 at 5:40 pm

Is Harper for real? It’s bad enough he is to far right for my liking but this is getting ridiculous. I can no longer vote for this party . Harper is an embarrassment to conservative s.

#13 Joe2.0 on 08.12.15 at 5:45 pm

I say the plunge protection team deserves a standing ovation.

#14 Falstow on 08.12.15 at 5:46 pm

Apparently harper is going ‘to do something’ about the foreign home ownership “problem”…

http://www.news1130.com/2015/08/12/harper-promises-to-address-foreign-homeownership-if-re-elected/

because apparently people from china are owning the high end housing market…

http://www.vancouversun.com/business/Mainland+Chinese+dominating+high+Vancouver+real+estate+market/11282771/story.html

#15 Matt on 08.12.15 at 5:50 pm

Harper’s proposal to allow bigger RRSP withdrawals is nuts, if kind of predictable – but getting information on foreign buyers, as he proposes, is not a “witch hunt”. It’s also not racist. Most countries with big foreign investment in their real estate markets collect this information routinely because it is important to know. At the moment we only get random bits of data, usually from realtors who have an interest in downplaying the problem. The only article I have read on this which makes sense is this one: http://www.theglobeandmail.com/report-on-business/rob-commentary/vancouver-is-mortgaging-its-future-for-a-market-thats-anything-but-free/article25558615/

#16 Llewelyn on 08.12.15 at 5:52 pm

Catch this interesting news item;

Stephen Harper categorically asserts that all senators meet the constitutional requirement that they reside in the provinces or territories they were appointed to represent.

Come on Stephen are you trying to convince Canadian voters that you never bothered to check where Mike Duffy and Pamela Wallin were actually residing at the time you, and you alone, appointed them to the Senate. If so your qualifications to serve as our Prime Minister must be questioned.

I am sure our Prime Minister was very aware that the Constitution of Canada specifically states that Senators must actually live in the Province they were appointed to represent. No cottages, no businesses, no visits with relatives, no family homes etc. I am a mere citizen and I knew that our Constitution required residency not just some connection to property in the Province they were being compensated to represent.

My spin on this is that Stephen Harper decided to place his own interpretation on our Constitution and appoint two highly visible Conservatives to our Senate even though most of Canada knew these appointees did not reside in the appropriate Provinces. In order support this loose interpretation of residency Mike Duffy and Pamela Wallin were informed by some source within government that they could claim expenses while they away from their ‘residence’ as interpreted by Stephen Harper.

When the press questioned the expenses of these Senators Stephen Harper pulled a Richard Nixon and began throwing people under any bus he could find. The attempted cover-up backfired and big time and now Stephen Harper has adopted the Bernie Ebbers defense “I am just the CEO how can I know everything my staff decides to do!!!”

No one will ever convince me that this supreme control freak didn’t play an active role in the cover-up once his mistake of illegally appointing two Senators became front page news. Get out the fingerprint kit and see who was really the architect of this scandal.

Let us not forget that Stephen Harper made at least two appointments that were illegal based on the clear intent of our Constitution. This and this alone is a good reason to abolish this expensive anachronism.

#17 Guy Willoughby on 08.12.15 at 5:52 pm

Good article. Lets face it, Canada is a young country. In the grand scheme of things, Canada is a teenage country and is still growing up.

Growing up in the 60’s and 70’s, there was a lot of substance abuse. At the same time there was a lot of authoritarian control. All of that has improved quite a bit. What seems to have happened is that we’ve become more enabling and co-dependent. I had to learn the hard way about life.

I have read a lot about finance. I had find for myself what I was good at so I could fit into society as an inter-dependent part of society. I learned the hard way that debt is not the road to prosperity for me.

I’ve learned a lot from your blog. I think it would be a good idea for the school system to teach budgeting and finance.

We, as a country need to become more functional.

#18 Throwaway on 08.12.15 at 5:53 pm

Weren’t a high number of people already *borrowing* money to get the 25K in their RRSP for use with the home buyer’s program?

#19 Julia on 08.12.15 at 5:53 pm

#10 Small_Town_Steve
“I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.”

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

I hear you. My colleagues and I will be busting our a$$es early morning and leaving late and these “kids” will come in late, leave early because they need balance.
Then one day, after working, like, a year, they “deserve” a raise and a promotion.

#20 Dominoes Lining Up on 08.12.15 at 6:00 pm

Add to this the social reinforcement from peers and even some “experts” that says staying in the basement is just fine, this could have disastrous effects on the parents, who may delay selling until the bubble is well into deflation mode.

(Maybe Harper will come up with a plan allowing the youngsters to be shackled with their parents’ mortgages at full 2014 retail values so mom and dad can live on a reverse mortgage?)

http://www.cbc.ca/news/business/millennials-should-move-in-with-parents-to-prosper-say-financial-experts-1.3183511

#21 Ryan on 08.12.15 at 6:02 pm

So much talk about this “death cross” pattern in the markets today. Is this nonsense, Garth?

#22 Just so you know on 08.12.15 at 6:09 pm

Just so you know, Garth, not all people who reject Harper and want fairer distribution policies are leftie “loosers”. I myself have a PhD in comp sci, built a successful business over 15 years that I sold to a big software corporation, invested my proceeds wisely and am worth well over an 8 digit figure. Yet I detest capitalism in its current form, in particular the neo-liberalist policies on which it rests, and the elitist preppie boy attitude of the likes of Harper. It would behoove him, and others like him, to take a less narrow-minded view. I am not a socialist, and firmly believe in capitalism. But what we have today is far from what a range of luminaries starting with Adam Smith proposed; and it also goes beyond what Milton Frienman envisioned. The latter should say enough, if you know your history of economic thought. But I guess that is too much to ask, why bother spending time on such topics when that goes at the expense of time one can spent on increasing ones fortune. In any case, when you try to educate us blog readers next time on political topics, please take note of the fact that there are a many of us here who have a higher education level in a toigher discipine, have built more wealth, or have more business experience and success – if not all of them. We do make our political choices in a very deliberate manner, just like you claim to do – we may just arrive at a different conclusion. Is the Canadian economy f’ed? Yes, regardless of who will be elected. Maybe it is better for us to tank even faster, so that we will sooner reach a point where we can become internationally competitive again; has that occured to you?

#23 S.Bby on 08.12.15 at 6:10 pm

#17:
I’m sure your company will be appreciative of your contributions when you are on your deathbed…

#24 Randy Randerson on 08.12.15 at 6:10 pm

The only acceptable situations for a child to live with parents are:

1) Parents are disabled or medically compromised and need help.

2) The child(ren) rents the house because the parents aren’t financially independent and need the support of child(ren), and renting two places is too much.

#25 Transplant on 08.12.15 at 6:11 pm

#2 Never gonna end

http://www.gocurrycracker.com/how-i-made-102k-in-real-estate/

Please read this article, it might make you feel better. Or perhaps you’ll conclude that you would have had a different outcome. There’s really no way of knowing for sure, but it’s better to be forward thinking than to regret a past course of action.

#26 MSM-Free Zone on 08.12.15 at 6:14 pm

“…..The Canadian Real Estate Association (CREA) cheered the Conservatives’ proposed increase to the RRSP withdrawal limits. The lobby group representing the country’s 110,000 realtors has long pressed the federal government to increase the amount of money Canadians can withdraw from their registered savings to buy a home…….”

“…The election platform represents a stark reversal for the Conservatives. Under former finance minister Jim Flaherty, the party spent years steadily tightening the mortgage-insurance rules, raising premiums on mortgage insurance from the Canada Mortgage and Housing Corp. and warning of the risks of rising household debt, only to essentially campaign on a platform of helping Canadians spend more on housing….”- Globe & Mail, Aug 12, 2015
_________________________

Just had a change of heart.

I’m now planning to provide Harper with one final term, in order to thoroughly cement his place in Wikipedia as THE MOST over-lobbied, corrosive, and traitorous economic arsonist in Canadian history.

#27 Andrew on 08.12.15 at 6:15 pm

Anyone who is predicting a housing crash is likely to be way off on timing. It could take years, even decades for Toronto and Vancouver housing prices to go down. I think we are basically seeing a regional recession in Alberta due to low oil prices. Toronto may have had a very mild downturn (not sure if it is actually a recession) but it is barely noticeable. The low Canadian dollar is going to cause an economic boom in the non-oil producing provinces, given that the US economy is doing well. The cause of the housing bubble in Toronto and Vancouver is greenbelt laws, that is why other cities like Ottawa and Montreal have cheap housing, and I wouldn’t count on prices going down unless the Greenbelt Act and Agricultural Land Reserve are abolished.

#28 Sheane Wallace on 08.12.15 at 6:21 pm

As I said many times any person holding the trash called loonie either in cash, saving account or GIC is an certified idiot by definition.

There should be check mark at each job interview that automatically disqualifies, enforceable by law by law any job candidate with saving account.

Next they will start mortgaging your kids income. Then the unborn.

#29 Mocha on 08.12.15 at 6:21 pm

What if he’s intentionally doing it because he knows that his party will lose the election?

He could create the conditions which would lead to a major crises for the next government, embitter the people, and then step in at the next election and say, “See, we weren’t so bad after all…”

Either that, or they are just complete idiots. Either way, we’re up the creek.

#30 Sheane Wallace on 08.12.15 at 6:26 pm

#27 Andrew

It is much deeper my friend, I am not sure what housing market you are talking about. This is an act of desperation. There is no economy left in this country. No sane person would do what they do, they are going va bank with very weak loosing hand, which clearly shows that they are delusional, they actually believe that they can continue running these non-sense policies. Like another leader/the fuhrer in the last days of nazi germany. Talking about victory with enemy at the gates.

Sad and pathetic,
Absolutely aling with GT:

The next generation can’t mature fast enough. This one’s a disgrace.
—————————-

#31 james on 08.12.15 at 6:29 pm

Agreed about the government greasing housing. The RRSP withdrawal increase is a case in point, alongside the CMHC, 80 billion dollar bank subsidies to purchase mortgage securities, etc etc.

However, on the subject of kids living at home, I would like to hear someone weigh in with a perspective from one of the cultures that has multi-generational families living in the same house.

Indian people, for instance, often live in multi-generational living situations. Their kids often don’t move out till much later, and I suspect one of the advantages that they have is increased savings ability due to foregoing rent payments for years.

Would people from these cultures agree that freedom is better than cash in hand? I’m not so sure.

#32 Ponzius Pilatus on 08.12.15 at 6:31 pm

#19 Julia on 08.12.15 at 5:53 pm
#10 Small_Town_Steve
“I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.”

**************
I hear you. My colleagues and I will be busting our a$$es early morning and leaving late and these “kids” will come in late, leave early because they need balance.
Then one day, after working, like, a year, they “deserve” a raise and a promotion.
——————
What do you expect?
You’re lucky they even come to work for 10 bucks an hour.

#33 james on 08.12.15 at 6:32 pm

#27

“The low Canadian dollar is going to cause an economic boom in the non-oil producing provinces, given that the US economy is doing well. ”

The basis of this prediction is what?

Is tourism from the USA going to skyrocket? Given that they just hit the highest number of Americans not participating in the workforce? Given the collapsing sport fishing industry?

Do you mean manufacturing will make a comeback?

Canada is highly dependent on residential housing for economic activity. The other parts seem to be people selling each other imported goods. Manufacturing and natural resource extraction are not exactly humming right now, with the latter being in a funk due to prices (not just oil, by the way… gold, potash, etc).

#34 Freedom First on 08.12.15 at 6:34 pm

I am sure this Post angered a lot of people today. However, for me, it was music to my ears.

Nothing hurts the idiots as much as the truth. Except, maybe, for the ensuing consequences of their idiocy.

I have been on my own since 17, through unfortunate circumstances beyond my control. Learned quick, ans always put my own Freedom First.

#35 Unzipped in Calgary on 08.12.15 at 6:34 pm

My roommate is moving back to his parents’ basement next month.

I would move back home… if my parents weren’t living there. I miss my cat.

#36 Ponzius Pilatus on 08.12.15 at 6:35 pm

#24 Randy Randerson on 08.12.15 at 6:10 pm
The only acceptable situations for a child to live with parents are:
—————
What?

#37 Smoking Man on 08.12.15 at 6:39 pm

Gartho, you can’t beat the machine. How many times do I need to say it.

The herd is going to go wild.

Let the good times roll……

#38 Steve French on 08.12.15 at 6:39 pm

#10 small town steve

I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.

——-

Yeah kids these days are utterly unreliable as they refuse to work 70 hours weeks for a mere pittance!

Soon they’ll be wanting to take off Christmas Day and New Years.

Spare the rod, spoil the child. Slap them around a bit and they get the message.

Good old Victorian-era, Dickensian slum-capitalism values.

Whatever happened to the good old days?

Minimum wages are what’s the problem with this country.

Teenagers should all be put to work without compensation, to gain experience about the real world.

Idiot.

#39 S.Bby on 08.12.15 at 6:42 pm

Notice that when the market picks up these “news” articles start appearing? But where is that helicopter guy?

http://www.theprovince.com/business/Vancouver+realtor+points+emerging+normal+single+family/11282589/story.html

#40 LowRent of Arabia on 08.12.15 at 6:42 pm

#22 Just so you Know…

I couldn’t have said it better. I am with you. Economics Degree, Military Service, fairly right wing and absolutely a Capitalist yet I have huge issues with the stewardship of the economy at the moment.

I want less government. No public sector unions. Enhanced financial education starting at kindergarten taught by teachers that aren’t raving socialists with upside down cheque book balances. And yes social programs and a safety net for the unfortunate.

Which party? None. They are all big gov’t, big bureauracy/union, expense account clowns.

What to do? Wait for rock bottom I guess. Maybe then people will get a clue or perhaps organize the distribution of pitchforks for the torchlight march on Ottawa in 2020.

#41 Shawn on 08.12.15 at 6:45 pm

Technical Analysis

#21 Ryan on 08.12.15 at 6:02 pm asked:

So much talk about this “death cross” pattern in the markets today. Is this nonsense, Garth?

*************************************
No more or less so than astrology, tea leaf reading, or the super-bowl indicator.

Think not about where stock prices might go. Think instead about what stocks ought to be worth based on their likely earnings and growth of earnings.

#42 Sheane Wallace on 08.12.15 at 6:45 pm

#33 james

Agree, when the dust settles we would be just another Mexico. Without the manufacturing.

#38 Steve French

Yep, to be sane in a mental institution is dangerous,

#43 Shawn on 08.12.15 at 6:47 pm

Harpers Revenge

He is just doing this mostly to prove Garth wrong in his predictions of house price corrections. He does hold a grudge you know.

#44 @ Sheane Wallace on 08.12.15 at 6:49 pm

It was the Rothschild Baron who said “Buy when there’s blood on the street, even if the blood is your own” (NOT John D Rockafeller). Just sayin’.

#45 Randy Randerson on 08.12.15 at 6:51 pm

I wonder how many Canadians actually have $70k saved up in their RRSP’s and burning a hole. Seems like all the greater fools have blown their brains out with their RRSP withdrawals over the last decade, and anyone who’s still holding out is probably smart enough to know this isn’t going to end well.

#46 Sheane Wallace on 08.12.15 at 6:53 pm

I am starting to believe that putting 50 % in junior miners at this point is less risky than buying a house. Well, the leverage is less but the payout….

#47 ed on 08.12.15 at 6:56 pm

An asset bubble is like a mental illness–having the illness precludes awareness of it. That realtors, newspapers, government, banks are drinking the koolaid confirms this is a monster of a setup. Once people no longer feel tulips are worth 4 ounces of gold things change quickly.

#48 mitzerboy aka queencity kid on 08.12.15 at 7:00 pm

it seems to be a different ballgame out thar now
after high school …u were gone from mom and dad

touch that dial …
turn it on …
lovin every minute of it

#49 raisemyrent on 08.12.15 at 7:02 pm

harsh but true. to make it worse, that generation complaints that their life choices don’t get them what they deserve. or that no one prevented them from taking such choices.
own up and deal with it. your parents failed you. the world will turn without you, so keep up.

#50 LowRent of Arabia on 08.12.15 at 7:03 pm

Yeah. Maybe there is a Harper conspiracy to discredit Garth by puffing up the real estate gasbag!!

Good thinking steerage class.

My guess is Harper is reading and commenting on this blog.

My money is on El Garth Magnifico as the nom de plume of old Stevo Harper.

Any other guesses which blog dog’s comments could be actually the PM hammering out comments from 24 Sussex Drive?

#51 jake on 08.12.15 at 7:05 pm

Harper getting desperate now in his bid to hold power. He reminds me of Mike Harras who was another desperate conservative that suffered a humiliating defect on election day. Bye bye Harper thanks for wasting ten years of Canada’s time on you failed policies. No more Mr. Harper

#52 Prairieboy43 on 08.12.15 at 7:05 pm

Millenials moving back home. Now you have 4-5 vehicles in driveway, front street. Neighbors becoming angry. Peace becomes War. Cause and Effect.

#53 Julia on 08.12.15 at 7:06 pm

#32 Ponzius Pilatus
“What do you expect?
You’re lucky they even come to work for 10 bucks an hour.”

****************************
$10 bucks an hour? These are University graduates, many with MBAs. Far from minimum wage.
They just think they should make as much money as their bosses when they start and need work/life balance being home for an early dinner, drinks in town and afternoon golf games.

#54 Just so you know on 08.12.15 at 7:07 pm

Sitting in KLM business class waiting for take-off. Reading an FT article that says that a bit over 50% of the market now expects a september rate hike by the Fed reserve. To my right a VP from a big Dutch bank interrupts my reading, seeing my interest in the article, and tells me inside many of the big banks the forecast is adtually eighty percent. So, it’s finally going to happen!

Oops, lift-off

#55 balcony on 08.12.15 at 7:09 pm

#19 Julia on 08.12.15 at 5:53 pm

#10 Small_Town_Steve
“I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.”

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

I hear you. My colleagues and I will be busting our a$$es early morning and leaving late and these “kids” will come in late, leave early because they need balance.
Then one day, after working, like, a year, they “deserve” a raise and a promotion.

====

Why do you blame others if you chose to be a slave employee?

#56 gut check on 08.12.15 at 7:09 pm

people picking on Millennials (or anyone, for that matter) just because they won’t pick up a Sunday shift or because they don’t come in early and leave late… well.. it’s just sour grapes.

Do yourselves a favour: STOP working Sundays and coming in early or leaving late!

You are in control of this, you know. Do better for yourselves.

#57 Sheane Wallace on 08.12.15 at 7:09 pm

#44 @ Sheane Wallace

acknowledged.

#58 Bondgirl on 08.12.15 at 7:12 pm

Sigh … this will end very badly. Stupidity and greed mixing together to produce poverty instead of wealth.

Great article here …
http://www.mrmoneymustache.com/2015/07/27/rent-vs-buy/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+MrMoneyMustache+%28Mr.+Money+Mustache%29

#59 Smartalox on 08.12.15 at 7:15 pm

Well, the up-side of extending the Home Buyers plan to $35k / $70k (up from $25k / $50k) is that it could leverage greed to ensure that 1st time buyers / couples take however many years longer that it takes for them to save the additional amounts before they pull it out to buy a home. I’d imagine, based on my own 20-something savings rates, that the difference for most people who are just starting out would be at least a year, if not two.

And the higher down payment amounts could reduce the CMHCs exposure, too, in some cases.

Like putting out a wood fire by flooding it with gasoline.

#60 Panem et circenses on 08.12.15 at 7:15 pm

Tax credits are like throwing bread to the restless serfs in ancient Rome.
Kinda sad that 2,000 years later, Canadians have not learned a bit.

#61 rainclouds on 08.12.15 at 7:16 pm

He is a tad confused with geography but ……..

http://www.businessinsider.com/this-housing-bubble-is-ready-to-pop-2015-8

#1 Solution,

Sarcastic or a not particularly bright PMO troll. I think the latter.

#62 Spectacle on 08.12.15 at 7:17 pm

I’m reading the blog and comments to my one month old Baby. ( really changes the message…)

We’re having tummy-time and it’s good to read to our /your baby.

Just to change the tone tonight a tad:
What is the most Amazing life contribution thing you have heard of a caring parent doing for their child?

Love my Bebe

Regards

#63 Amanda Hudson on 08.12.15 at 7:19 pm

To Sheane Wallace

Anyone with credit card debt, auto loans, mortgages, payday loans, lines of credit, personal loans, reverse mortgages, credit card debt and other debt insurance etc. etc. are real smart. Yeah, right!

The last time I checked, you have to pay your property taxes, hydro, electricity bills, water bills, heating bills, income taxes, C.P.P., E.I., auto and home insurance, quarterly tax installments, grocery bills, rent, medical care etc. etc. in Canadian dollars.

Just remember we live in Canada and not in the U.S.

#64 sentry on 08.12.15 at 7:21 pm

A Loonie Looneye,oh baby….we gotta go,DownDown Down Down…
As for calling B.S. on NDP screw ups in B.C.’s past…..does the billions wasted BC Coal,Fast Ferries and BCRIC shares ring a bell,anyone,hmmmmmm. Guess you weren’t around for those and other NDP inspired pipe dreams.Be careful what you wish for.

#65 Ken Jensen on 08.12.15 at 7:23 pm

James
To your question regarding kids living at home. I (quote) I had a friend living at his parents 38 years old. Never worked, sat on his com 16 hours a day, waiting for his folks to pass on. Parents were more than capable of looking after themselves, Can I explain it, Yes its called a free ride which seems to be becoming the new norm, I am aware of two other examples of adults in their mid 20’s still living at home, Parents feel their helping them out, all the meanwhile these adult children are in low income jobs driving around $60,000 trucks with 84 month loans. Does this sound like their saving for the future? Their in debt up to their ***.with no savings. The attitude seems to be live for today who cares about tomorrow. It pains me to even think about it as I was out on my own at 17 and working.

#66 millenial1982 on 08.12.15 at 7:25 pm

Wow small world Garth. Today’s picture was taken in my hometown Kenora, Ontario. I actually know the people in that picture. Speaking of which, Kenora real estate would be an excellent blog post topic one day. Many a greater fool here (not me of course)!

#67 JSS on 08.12.15 at 7:25 pm

If some asked me today what i want to become when i grow up, i’d say i want to become a “dividend collector”.

CAE reports strong Q1 results, boosts dividend, cuts workforce by 350

http://www.proactiveinvestors.com/companies/news/62900/cae-reports-strong-q1-results-boosts-dividend-to-cut-workforce-shares-drop-62900.html

Why be an employee when you can become a shareholder? More income security, less taxes to pay.

#68 weedeater on 08.12.15 at 7:27 pm

Love he Globe headline about Canadians assuming more “good debt”. Right. Good debt is cheaper to repay than “bad debt” … sigh, poor idiots.

#69 omg the original on 08.12.15 at 7:29 pm

Just days after proposing a permanent reno tax credit so this great nation can get more desperately-needed hot tubs and Wolf stoves, the Harper Conservatives have announced a massive 40% increase in the RRSP Home Buyer’s Plan.
———————–

Just goes to show that when it comes to getting elected or staying elected GOOD GOVERNANCE goes out the window.

Political parties will do anything thing to get power regardless of the implications for the country.

Its all in keeping with my view that we will have a long and slow reversion of house prices as governments, banks and real estate hacks do everything possible to keep prices up.

#70 lilyflor on 08.12.15 at 7:29 pm

but “good debt” is okay the bankers tell us……sigh

http://www.theglobeandmail.com/report-on-business/canadians-piling-up-good-debt-report-says/article25932624/

#71 nonplused on 08.12.15 at 7:31 pm

My father (retired) has an even better retirement plan. He bought my sister a house which he rents to her for free! It’s an investment, he checks the prices of comparables in the neighborhood periodically and sure enough they keep going up! Of course he doesn’t include the mortgage payments in the calculation so in effect he is underwater.

At least I think the rent is free because she doesn’t have much income. Oh well I suppose she can’t be out on the street if he can afford it.

He’s also sporting a new RV and truck. Pretty nice living if you have that sort of retirement income. From what investments I can confirm he has I think the payments might be pretty tight except for 2 known facts: He thinks the world will end by 2019 at the latest as per certain “literalists” common in the southern parts of the US, and he has talked about getting a reverse mortgage before.

I would fully agree that the way things are going the world could very well end by 2019, but I wouldn’t bet on Dog forcing it to happen in the event Putin and Trump sort everything out. After all we have been on the brink for a long time now and we’ve bumbled along.

I hope I am wrong because if he is taking financial advice from “end-timers” then things might start getting difficult for him (and my sister) right around 2020. Oh well that’s still a ways off.

So some financial advice for you from some famous Greek guy I can’t remember his name: “live like you will die tomorrow, but do business as if you will live forever”.

And some advice for the end-times folks. The Bible is very clearly I won’t use the word “wrong” about how the world came to be, it could be metaphorical, but the point of Genesis is a moral lesson not a scientific one. Even the Catholics, who assembled and edited the bible, admit that. Unfortunately prophecy can become self-fulfilling, which is what I found so frightening about how close Romney and Palin got to the suitcase.

And I will respond to the 6 day creationists up front I suppose, as I may not check back tonight. Everyone else can stop reading.

First off it flies contrary to everything we observe in the physical world. Everything. Sure Dog could have created the trees with tree-rings (in fact he would have had to) but either way the evidence for a very old earth is overwhelming and no, kids did not ride dinosaurs as pets. If you think that you do not know what a T-Rex was.

Yes trees have been found growing through several layers of the geological column but that’s what they do, grow through every crack they can find. The idea the layers of dirt were deposited around an upright tree is ludicrous. The tree grew through the soil.

I could go on and on, but I will just throw in a couple more, kangaroos, plant life (which was not on the ark and obviously had to survive a year in the deep ocean while being covered in 10,000 feet of sediment), and fossils. If anyone say the world is only 6000 years old throw a fossil at them.

The Bible itself is in great confusion on the matter. What is this firmament Dog spent the whole 3rd day creating and didn’t put the sun and moon in until the 4th day? Why is it we cannot observe the firmament with our telescopes? Why is it when we look through our telescopes we see that it is the earth that moves around the sun rather than the sun moving through the firmament, which we can’t find? How did the earth support plant life (second day) before the creation of the sun and the firmament. Ok, it was only 2 days so I guess plants can survive that long without light but it seems backwards.

And why kill all the pet dinosaurs because man was wicked? Didn’t we already know he was wicked after the apple thing? Why put that tree in there? Why not mention to Adam “hey, if a talking snake comes around here saying eat the apple it’s bullocks! Kick him away!”

Where did all the water come from for the flood? Where did it go? The Bible says it came from the firmament but how did it get back up there? This is a serious amount of water. So much so it would have drastically increased the mass of the earth and altered it’s orbit.

Not to say all of this disproves Dog, by no means, lots of theists believe the big bang is scientific proof of Dog. But it proves the Bible is not literally true 100%. End-timers don’t like this because it undermines Revelations. Or at least the literal interpretation of it. But Revelations is full of it’s own false scientific claims. For instance in Revelations 1/3 of the stars in heaven will fall to earth. Well, these either aren’t literally stars, or as Neil Tyson pointed out the writer did not know what a star is.

#72 Smartalox on 08.12.15 at 7:32 pm

Re: HAM dominating the Vancouver SFH market.

If the HAM is famous for distorting the market, buying up the supply of single-family homes in Vancouver and

IF the HAM then don’t even bother to LIVE in those same houses, choosing instead to leave them vacant to decay and –

IF the HAM are less interested in profiting from real estate than they are in parking cash in safe, stable countries, and obtaining passports and health cards from countries that don’t ask too many questions about total global income

And IF as some believe, real estate is simply a giant Ponzi scheme, with land values divorced from reality and completely subjective,

THEN why not do away with the Real Estate portion of the transaction all together?

Why aren’t we selling the HAM virtual real estate? Or, at the very least, selling them high-priced real estate that doesn’t deplete the amount of housing stock available to actual Vancouverites, thus slewing the supply – demand curve to the stratosphere?

What I’m talking about is a shadow market, with a single, archetypical typical Vancouver property ‘Sold’ over and over again to off-shore investors, with the ‘wealth’ catalogued and stored, and returned to said investors on demand? (Minus a small fee, or ‘commission’ for ‘selling’ the property)

#73 Investorz on 08.12.15 at 7:38 pm

Business Insider talking about us:

http://www.businessinsider.com/this-housing-bubble-is-ready-to-pop-2015-8

#74 TurnerNation on 08.12.15 at 7:39 pm

Lots of wailing and gnashing on here lately with 300 comments. The 7% ers (compounded annual return) are always quiet.
Carry a big shtick.

Market will be up till the Fed in Sept. Bank on it.

#75 jess on 08.12.15 at 7:40 pm

Integrity Cash Maximiser, sold by financial advisers before the credit crisis

Elderly couple to lose home after being advised to ‘borrow to invest’
In the latest case involving elderly home owners urged by salesmen to take out mortgages and invest the cash, a couple are about to have their home of 15 years repossessed

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11798145/Elderly-couple-to-lose-home-after-being-advised-to-borrow-to-invest.html

Exposed: the rip-off investment ‘advisers’ who cost British expats billion
Foreign financial advisers often sell investments within “insurance bonds”, which act as investment containers or “wrappers”.

http://www.telegraph.co.uk/finance/personalfinance/investing/11726158/Exposed-the-rip-off-investment-advisers-who-cost-British-expats-billions.html

#76 Mulcair vs Harper on 08.12.15 at 7:41 pm

What’s the difference between Mulcair and Harper (according to this blog)?

Mulcair foolishly mortgaged his house several times.

Harper wisely mortgages the Canadian economy.

According to this blog, they are both wanting. — Garth

#77 Cocoabean on 08.12.15 at 7:50 pm

Why delay the inevitable?

Canadian productivity is DISMALLY low. Living standards have to fall. They won’t do so evenly; they won’t do so quickly.

But don’t impede the process by imagining that there are plentiful money-making career, business or investment options out there.

#78 nonplused on 08.12.15 at 7:51 pm

PS the reason I like to use “Dog” is because I am a dyslexic agnostic. I’m not meaning to imply my pet created the world not only with tree rings and lots of adult people already fighting, and even though I remember being a child he actually created me just a few years ago with memories. That would be silly. Although there is no objective proof he didn’t. He’s a smart dog. Who knows maybe he is the 4th coming of Dog.

#79 BS on 08.12.15 at 7:51 pm

What do you expect?
You’re lucky they even come to work for 10 bucks an hour.

People make 10 buck an hour because that is all they are worth. If they were worth more they would be promoted or just paid more in order to keep them at the job they are so good at. They could also easily find a higher paying job at a different employer if they were worth more.

The argument that you should be paid more first and then you will start showing up, working harder, etc is the reason you will always be at the bottom of the food chain. You must work hard first, then you will get paid.

#80 Linda on 08.12.15 at 7:52 pm

Garth, you speak of how the wrinklies will be broke & still supporting children (those that have them, anyway). Yet recent news articles have been to the effect that Canadians are indeed for the most part saving ‘enough’ for retirement – more than ever before was the claim – & that the great wrinkly exodus to the nearest shelter for the homeless is not going to happen. The article I read did say that ‘a small percentage’ of older Canadians would indeed suffer a drop in their living standards due to insufficient savings, no company pension plan etc. but claimed the majority of older Canadians are not going to have to worry about whether to pay for food or pay the utilities come the day of retirement.

So are the StatsCan stats out of date? Did people lie about the true state of their finances? Or are they lying about how bad (or good) they are now? Or is the author of the article ignoring compelling data that refutes the claim that older Canadians are indeed saving enough?

Link the article and I will tell you. — Garth

#81 Absolutely aling with GT on 08.12.15 at 7:54 pm

The 1%-er sheeple is getting seriously confused – clarification is needed from Sir Garth immediately which box to check mark for the sake of the portfolio.

#82 You must work hard first, then you will get paid on 08.12.15 at 7:58 pm

#79 BS on 08.12.15 at 7:51 pm

What do you expect?
You’re lucky they even come to work for 10 bucks an hour.

People make 10 buck an hour because that is all they are worth. If they were worth more they would be promoted or just paid more in order to keep them at the job they are so good at. They could also easily find a higher paying job at a different employer if they were worth more.

The argument that you should be paid more first and then you will start showing up, working harder, etc is the reason you will always be at the bottom of the food chain. You must work hard first, then you will get paid.

Does your business “employ” unpaid interns?

#83 Paully on 08.12.15 at 8:07 pm

No question about it. Living on your own, although it costs more, is well worth it! Moving back home as a young adult is a nightmare! Don’t do it!

#84 Beaver, let's all become Ward's of the state... on 08.12.15 at 8:08 pm

I smell a book, come on Garth, fess up….
It must be bulging with material by now,
When’s it due out? Title? may I suggest,
Idiot’s guide (That’s you!) to all things economic
(except housing)…

#85 Harper going after HAM on 08.12.15 at 8:09 pm

http://www.financialpost.com/m/wp/personal-finance/mortgages-real-estate/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/stephen-harper-vows-to-track-foreign-property-ownership&pubdate=2015-08-12

#86 David McDonald on 08.12.15 at 8:11 pm

With 264.6 billion under management the CPP’s costs of 2 billion seem reasonable and the return of 8% per year over the last decade is excellent. However I don’t know what return I got on my contribution (and my employer’s) from thirty plus years of maximal contribution. I get the maximum of slightly over $1000 a month which isn’t much but is guaranteed like a defined benefit pension. Maybe one of our experts can tell me my real rate of return. At least it is better than my return on the unemployment insurance tax which never paid me a cent (thank goodness).

#87 Real 1%-er on 08.12.15 at 8:12 pm

#54 Just so you know on 08.12.15 at 7:07 pm

Sitting in KLM business class waiting for take-off. Reading an FT article that says that a bit over 50% of the market now expects a september rate hike by the Fed reserve. To my right a VP from a big Dutch bank interrupts my reading, seeing my interest in the article, and tells me inside many of the big banks the forecast is adtually eighty percent.

You missed the memo. Real 1%-ers fly private jets.

Exactly to avoid that some steerage passengers read your paper over your shoulder and disturb your privacy with their uninvited, silly gibberish.

#88 BS on 08.12.15 at 8:14 pm

Macdonald’s studies in both years involved identifying the number of buyers it believed were making purchases with cash from mainland China by looking at their last names.

Read more: http://www.vancouversun.com/business/Mainland+Chinese+dominating+high+Vancouver+real+estate+market/11282771/story.html#ixzz3ieHfuXmy

Amazing they can identify people from mainland China (purchasing with cash) based solely on their last name. Vancouver’s population is 30% of Chinese decent. Unless those 30% legally changed their last name to Smith or Jones that whole 30% of the population gets grouped in this category. How can they print this stuff?

#89 Gen X Confessions on 08.12.15 at 8:26 pm

“Sacrificing comfort or material things in the short term is smart and disciplined. Trading precious time and freedom for money misses the point entirely”

So very true. Reminds me of a previous post from Garth
http://www.greaterfool.ca/2015/07/02/happily-ever-after-2/

“You can be young, impoverished and happy. But never so at the end of your life.”

#90 3s on 08.12.15 at 8:28 pm

Yup Garth – Seeing the same thing in Australia. It is a disgrace of soft c#ck failure to launch princesses. I came here 10 years ago and it was obvious as daylight in the first week. And all the locals could do was affirm to themselves over coffee and cookies on how this is GODS COUNTRY!

Criminal

#91 45north on 08.12.15 at 8:29 pm

Transplant: Please read this article

why? you have to make the point yourself, even if it’s just a summary. Then provide a link. To show authorship. To provide more detail.

#92 Sheane Wallace on 08.12.15 at 8:32 pm

#63 Amanda Hudson

Nothing prevents you from converting USD/Euro, etc. into CAD to pay your taxes, even gold for heaven’s sake is rising against the CAD!

#93 Sheane Wallace on 08.12.15 at 8:39 pm

#73 Investorz on 08.12.15 at 7:38 pm
Business Insider talking about us:

http://www.businessinsider.com/this-housing-bubble-is-ready-to-pop-2015-8

They are missing the point.

The ONLY reason for the bubble in Van City is CMHC and Harper’s government.

In 1998 with prices around 350 k it was not worth it. It does not worth it now, at 5 times that price.

#94 bigtown on 08.12.15 at 8:40 pm

Wait when house prices go down the media will insist it’s foreign sellers. Then the government will try to find a scapegoat for the price drop and blaming it on foreigners will again be an easy target.

#95 Sheane Wallace on 08.12.15 at 8:40 pm

It is not worth it now, damn it.

#96 Thebarold on 08.12.15 at 8:40 pm

Not a believer in HAM driving housing prices, but for the few chinese investors out there who park someof their cash in canadian real estate – how have they fared with the exchange rate movements?

#97 Retired Boomer - WI on 08.12.15 at 8:42 pm

Funny, I just started re-reading “After the Crash” again, last night. What with an aging Bull Market, China devaluating, and the probability of a “race to the bottom” for export dependent economies, it gave me pause.

While neither I nor anyone else know what may happen tomorrow, it just seemed time for a good Think.

So, I’ll go out to my man cave in the garage, perhaps with an adult beverage, and continue my reading, and contemplate several courses of action, including my favorite – no action.

#98 fleabitten monkey on 08.12.15 at 8:43 pm

HAM allegations out of Vancouver. MacDonald. Realty now giving stats about their 1500 sales in 2014. They say 11 pct of sales in less than $1mill properties were to mainland Chinese and 21 pct of sale btw $1mill and $3mill were to mainland Chinese. They say in absence of Govt data to the contrary this is indicative of the trend. Hmmmm…..what do you reckon garth? just realtor bs?

The realtors took a look at names on contracts and ascribed ethnicity and nationality based on them. Sleazy, despicable, race-based real estate fearmongering. The only greater crime is that this Yellow Peril crap got picked up by the mainstream media. — Garth

#99 the Jaguar on 08.12.15 at 8:47 pm

Oh Garth. The Blog might set a new record for number of responses. Your comments are all spot on as usual, but all those hand wringing parents won’t like being reminded that the chickens come home to roost.
Many things mark the slow slide into societal mediocrity, and one of them would be the current lack of responsibility for making ones way in life. Parents think that giving their children everything they can in life is all about financial help and doing things for them that they need to learn to do themselves. Learning from failure, learning by doing, all gone once mom starting driving them to their friends house 4 blocks away instead of making them walk the distance. Problem solving is also absent since everything has been thought out and organized for them. In my day friends pooled their resources to get a start in a little apartment, usually shared (that way we could have guys over, etc wink, wink) and the lessons of responsibility had a good beginning. If we ended up back home temporarily we soon wanted out again as we couldn’t bare to give up the freedom we had experienced. Of course we did not have big flat screen televisions, internet, and boyfriends were not allowed to sleep over. And we knew our parents wanted their lives back so they could focus on each other in the way they did before we arrived on the scene. Don’t see that much these days.
Probably get worse before it gets better as in some cultures it is more deeply rooted.

#100 cramar on 08.12.15 at 8:52 pm

When this boomer and his wife had two Gen X offspring attending High School, my wife & I told them, we will pay for your college education (just as my parents paid for mine), and when you graduate you can remain at home until you get a job. When you get a job you can pay us rent or move into your own place. Regardless, you can only stay in this house for ONE YEAR after you graduate, then you must leave!

Amazing what happens when you put their backs against the wall, but give them a start with no debt. Blame the parents for Boomerang Kids.

#101 k on 08.12.15 at 8:52 pm

Hey Garth Did you happen to see a recent Province news article about thousands of Chinese “tourists” attempting to smuggle in hundreds of thousands of yuan in their luggage and clothing ? Vancouver is the number one city for Chinese money laundering through real estate. It’s a fact and not a myth.

#102 Show Me The Money on 08.12.15 at 8:55 pm

Garth
It just seems every time the housing market is set for a correction the Feds do all they can to keep it up. It seems this housing monster cannot be stopped.

#103 Transplant on 08.12.15 at 8:57 pm

#90 45north

Transplant: Please read this article why? you have to make the point yourself, even if it’s just a summary. Then provide a link. To show authorship. To provide more detail.

I think most readers of this blog after having perused #2 post would understand that the link is going to refute the comments made therein. No need to read further unless more detail is desired. I didn’t feel the need to hammer this into anyone’s head.

#104 Mister Obvious on 08.12.15 at 8:57 pm

In 1970 at 19 years of age, I left home for good.

I would describe my father as a Canadian war hero (certainly in my eyes) and my mother as modern day saint. Fine citizens and fine people. Yet, I couldn’t conceive of reaching my twentieth birthday still living under their roof. It was absolutely out of the question.

My parents were just that: My parents. They weren’t my ‘buddies’. I didn’t spend my weekends hanging around with them. They didn’t want that, nor did I. They wanted me to start developing my potential and get on with my life.

My father helped me immensely. He had the good sense to make the home environment uncomfortable for me when he knew I was entering manhood.

My mother helped just as much. She believed in my character and told me so. She encouraged me to jump into the murky waters of real life.

Their ilk is long gone and we are vastly poorer for it. Even though think we’re rich.

#105 OffShoreObserver on 08.12.15 at 8:58 pm

Garth,

Would you please devote a column on the cost/benefits of expatriation?

#106 batt519 on 08.12.15 at 8:58 pm

I smell QEIV. It’s coming.

#107 Transplant on 08.12.15 at 9:03 pm

Addendum to my comment #101:

On further reflection you’re right, I should have originally written “Buying isn’t always the best option.” – for those who don’t understand the meaning of “tacitly implied”.

#108 Chaddywack on 08.12.15 at 9:04 pm

The fact that Harper is the first politician federal or provincial to look into foreign buyers got my vote.

You come cheap. — Garth

#109 45north on 08.12.15 at 9:05 pm

Never Gonna End: Any chance the NDP/Liberals will go against this plan? This seems like every party will puppet the same idea to avoid looking “anti-middle class”

the NDP and Liberals have every chance to go against this plan. Both parties have access to the media. Complete access.

Garth points out that policies that lower the price of real estate promote investing in other areas that produce real wealth which supports and promotes the middle class. He seems likely to emerge unscathed from the election.

Just so you know: Reading an FT article that says that a bit over 50% of the market now expects a September rate hike by the Fed reserve. a VP from a big Dutch bank tells me inside many of the big banks the forecast is adtually eighty percent. So, it’s finally going to happen!

and it’s going to happen during the election! The results will astonish. While the rest of the world lowers interest rates the United States raises them leading to an unprecedented flow of capital into the US. Suddenly there will only be one topic: the Canadian dollar. The Governor of the Bank of Canada will make a public announcement raising interest rates to match the American.

#110 Daisy Mae on 08.12.15 at 9:06 pm

“The next generation can’t mature fast enough. This one’s a disgrace.”

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

Disgusting….and very sad.

#111 Nagraj on 08.12.15 at 9:08 pm

Hi, it’s Bulto. Your friend.

Dr. Louise was reading your letter from Joe and it made her cry. So Tulong and me got her to do THE MEXICAN HAT DANCE which she loves (even tho we hate it because for the men it’s like dancing with your arms handcuffed behind your back, yuck). This made her forget sad little Joe. We did this because the last thing we need is for her to invite Joe to come and live with us in this stupid little condo of hers. ESPECIALLY NOW that Trollo will be moving in. (He’s the new stripper at the club and he’s from Norway.)

Please don’t publish any more sad letters.

Your friend, Bulto

PS: Dr. Louise has been teaching us about voting. It’s a secret. You secretly put an x into an O, but if you put an X into an o it’s no good. So Tulong and I have been practicing putting little x into circles and not goin’ over the lines of the O. We want to be good citizens.

PPS: This old man in a suit and tie threw a big fat gold chain at me when I was done pole dancing and Dr. Louise says “OMG! Enuff for a down payment on a house!”

#112 Ronaldo on 08.12.15 at 9:12 pm

Unbelievable. More RSP savings going to evaporate into thin air when the bubble finally bursts. What is this country coming to? Disaster in the making.

#113 Amanda Hudson on 08.12.15 at 9:12 pm

To Sheane Wallace

Are you going to pay the 1.5% to 2.00%*2= 3.00% to 4.00% or so exchange fees to just break even. This goes for buying gold and other precious metals 5% to 10% physical, 1.0% to 1.5%+ annual MER’s, fees for gold funds.

Also, using your speculation techniques to pay my or anyone else to pay property taxes, electricity, hydro bills, water bills, heating bills, auto and home insurance, income taxes, quarterly tax installments, grocery bills, rent, medical expenses etc. and other expenses that me or others can’t avoid paying in Canadian dollars is is living on the financial edge.

If the Canadian dollar to the U.S. dollar goes the other way and we see what silver, gold, oil, copper and all other commodities, CRB index etc. has done, down 50% to 75%, you would be wiped out!

This is almost as bad as borrowing on your house betting on your house price to keep going and having 100% of the time, tenants pay rental income to you with no court, damage costs, problems to pay your property taxes, mortgage payments, home insurance, water bills, electricity, hydro, heating bills, repairs, maintenance costs, other household bills etc.

No wonder people are so financially deep in the hole. They live in a world of financial, fantasy and milk and honey where bills, taxes, expenses will be paid by speculation and high risks.

#114 Andrew Woburn on 08.12.15 at 9:12 pm

#45 Randy Randerson on 08.12.15 at 6:51 pm
I wonder how many Canadians actually have $70k saved up in their RRSP’s and burning a hole. Seems like all the greater fools have blown their brains out with their RRSP withdrawals over the last decade, and anyone who’s still holding out is probably smart enough to know this isn’t going to end well.
=====================

That’s why this is a virtually cost-free political gambit.

#115 Ronaldo on 08.12.15 at 9:15 pm

#7 Zee

”Because Canada is so small population wise the govt can always take steps to prevent any major correction from happening.”

Wishful thinking. You likely were not around for the real estate plunges of the 70s, 80s and 90’s. It won’t be any different this time. Just taking a bit longer is all. Good luck with your house purchase.

#116 Tony on 08.12.15 at 9:19 pm

Re: #26 MSM-Free Zone on 08.12.15 at 6:14 pm

The change will make almost no difference as single first time house buyers in Canada still can’t withdraw one red cent from their RRSP’s for a down payment.

#117 Ronaldo on 08.12.15 at 9:20 pm

#8 Drill Baby Drill –

”Hell even the Baby Boomers will be moving in with Grandma because they have insufficient funds due to their layoffs.”

I’m a baby boomer (the oldest) and my grandmother would have been 125 today and my mother 100.

Too late for me. Now what am I going to do?

#118 Interstellar Old Yeller on 08.12.15 at 9:21 pm

Really good points today. Living on your own (especially through lean financial years) promotes autonomy, self-sufficiency, and responsibility. Your parents shielding you from reality makes you weaker and less able.

As for increasing the RRSP Homebuyer’s Plan amount? Face-Palm!

#119 Andrew Woburn on 08.12.15 at 9:21 pm

Many Easterners seem to believe that there is no economy in BC other than rocks, trees and tourists. Victoria may or may not have HAM but it definitely has tech.

“Victoria does not have any big tech companies, but it has enough small and medium-sized firms that the sector – not government or tourism – is the top employer in the metropolis of 344,000 people. The Victoria Advanced Technology Council says there are 900 technology companies employing 15,000 people in the area, generating $4-billion in economic impact.”

http://www.theglobeandmail.com/technology/business-technology/victoria-packs-a-pint-sized-punch-as-a-small-but-flourishing-tech-hub/article25898988/

#120 Sheane Wallaces on 08.12.15 at 9:23 pm

The realtors took a look at names on contracts and ascribed ethnicity and nationality based on them. Sleazy, despicable, race-based real estate fearmongering. The only greater crime is that this Yellow Peril crap got picked up by the mainstream media. — Garth

which part of that surprises you in harperland?

#121 Suede on 08.12.15 at 9:26 pm

Jokes on HAM

Their currency is getting hammered.

#122 Amanda Hudson on 08.12.15 at 9:34 pm

Regarding the proposed $10,000 increase from $25,000 to $35,000 RRSP Home Buyers Plan from Harper today, I would not be surprised if they did even more.

What I mean by this is, extend the time period to repay each year the $35,000 RRSP Home Buyers amount per individual from 15 years to 25 years.

This will match most financial institutions, lenders mortgage amortization period of 25 years. I am not endorsing this but guess what, the same 10/10, 40%/40% increase is there.

Take $10,000 RRSP increase from $25,000 to $35,000 to RRSP HBP/$25,000*100%=40% increase, 10 years increase for repaying period from 15 to 25 years equals 40% increase.

#123 Nosty, etc. on 08.12.15 at 9:37 pm

#150 SWL1976 on 08.12.15 at 1:07 am — “Ignorance is bliss… But it’s still ignorant”

Conspiracy theories? Hah! It has been routinely established for several years that the m$m are nothing more than a bunch of corrupt liars, and that ‘conspiracy theories’ now hold more weight to them, as a lot of them are true.

For example, Who remembers 1992? That was when the US called for a one-world super power, and now, the US is planning a color revolution (no doubt with Soros’ approval) to achieve regime change in Moscow, just like they did in Ukraine.

However, Russia is giving a free hectare and helping would-be farmers out financially. Would the explosion in China be a tap on the wrist, a don’t-do-that-again (currency devaluation[s]) from someone else?

I’m a retired simpleton, plain and simple. It isn’t hard for me to figure this stuff out, but for others, it may be too advanced.

#124 New Babblemaster on 08.12.15 at 9:41 pm

“By allowing a couple to now siphon $70,000 from their retirement savings instead of just $50,000, the Tories are blowing heaps more air into our bulging gasbag of a housing market, ensuring prices will continue to rise (and affordability fall), plus reinforcing the message that saving is silly and debt’s good.” – Garth

—————————————————

Exactly!!!!! I said months ago they would do anything to keep this bubble going and you, Garth, said NOoooo. Now do you see the light? This is only the beginning. They will, I think, eventually give outright grants to people to buy houses.

#125 Shortymac on 08.12.15 at 9:45 pm

IMHO, I stayed home until I was 23 BUT my parents had conditions:

1) I had to go to school either University or College, which I paid for myself (at US rates)

2) I had to have a job, they used their connections (family friend) to help me land my first but after that I was on my own

3) I had to pay some rent, a token amount (100-300) and contribute to the household with cleaning, etc

Now this was after I helped support my family through difficult times: by cooking/cleaning/laundry when my Mom had a second job and my father was very ill from 10 to 13 and giving half my paycheck when I got my first job at 14.

My parents where able to get through these tough times and are now very comfortable. Still, I would NEVER DREAM of asking them for money.

I was absolutely shocked at my husband’s family and friends who subsidized their adult children’s lifestyles far beyond university and college years. Paying for cars, houses, cell phone bills, day care for grandkids, etc.

My MIL and her friends all get drunk on wine and complain about it, I suggest they just cut them off but they “can’t”.

#126 Herf on 08.12.15 at 9:47 pm

#64 sentry

“As for calling B.S. on NDP screw ups in B.C.’s past…..does the billions wasted BC Coal,Fast Ferries and BCRIC shares ring a bell,anyone,hmmmmmm. Guess you weren’t around for those and other NDP inspired pipe dreams.Be careful what you wish for.”

BCRIC shares were created by the Social Credit government under the helm of the Mini-WAC (i.e. Bill Bennett, Jr.).

#127 Sponge on 08.12.15 at 9:49 pm

Nothing Progressive about these Cons… Starting to think ABC! Heave Ho to Stephen H and Joe O!!

#128 Leo Trollstoy on 08.12.15 at 9:52 pm

I’m confused. Are we saying that Boomer parenting sucked because they created Gen X boomerang parents?

What’s going on?

#129 David W2 on 08.12.15 at 9:53 pm

I was out on my own when I was 17 and never looked back. It feels great but the ppl who stayed with their parents for 5-8 extra years saved tonnes of money and are well ahead now. Small sacrifice to Lose some independence to save 6 figures.

The advice today makes some sense but some ppl use the extra time at home to save and build a foundation for the future.

#130 Leo Trollstoy on 08.12.15 at 9:56 pm

#97 fleabitten monkey on 08.12.15 at 8:43 pm

How did they determine that buyers were from mainland China?

Birth certificate? Passport? Both?

#131 Frank on 08.12.15 at 9:58 pm

I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.

Generational stereotypes are stupid. Every generation has complained about the one that follows them for centuries and yet we continue to advance. Why? It’s because each generation is made up like the previous one: some bright sparks, some dullards and mostly inbetweens.

So who complains about the next generation? Old people. Why? Because faced with their own mediocre achievements and ever present morality they resent the gifts of youth and try to find any reason to cut down those with it. They’re also of moderate intelligence and capability so new lingo, technology and cultural norms scare them instead of make them curious. Instead of embracing and learning about it they shun it with ignorant stories that begin with ‘in my day….’

Notice you don’t see successful people complaining about youth. Politicians, wealthy philanthropists, scientists and innovators talk about empowering the newer generations because they recognize the bright sparks and know that they’ll be the ones to carry the torch of human advancement.

So. I’ve learned that whenever I see someone making a negative sweeping statement about a group who share nothing more than a proximity of birth year, what they’re really saying is “I’m an old loser.”

#132 stage1dave on 08.12.15 at 10:04 pm

Interesting topic, but I have one thing to add…make sure your family doesn’t move in with you a couple years after you leave!

Same effect, believe me…

Anyway, my parent told both us kids in the mid 70’s that after we graduated high school, we had the summer “rent free”…if we were going to university, we could stay there for nothing. If we chose not to, we were expected to both provide 1/2 the mortgage payment…$170 in 1977 dollars.

(it was also made clear that if we chose NOT to complete high school, we were both free to find somewhere else to live, btw)

Never entertained the thought of having my education paid for…don’t remember it ever coming up; & both of us once had the student loans to prove it. Anyway, no “hard luck” story here, I never thought I wanted for anything; just figured that’s the way things worked, y’know?

I do find it amusing to remember these things occasionally, however, when cruising this (or a couple other) forums…apparently parents attitudes have changed a wee bit.

(Sometimes I will conduct random thought experiments re: asking my mom or dad to buy me a house circa 1980…none of them end pleasantly. Anyway, that’s something else that never occurred to me)

On another note, interesting column about the stuttering U.S. economy: http://davidstockmanscontracorner.com/cnbcs-alfred-e-neuman-luncheon-club-beyond-clueless/

#133 Estrella on 08.12.15 at 10:04 pm

And to think we have 2 months left of this campaign. I wonder what else Harper will pull out of his top hat?

Your blog today does not correlate to well with some European traditions werein children stay home until they marry. (My own experience included).

I think it has to depend on the type of puppy you have. Some are ready, some just aren’t. The ones you worry about are the ones that don’t try, and don’t have any goals to try.

About 5 years left on education between my two. I guess we will see. I don’t think I have much to worry about because they find farmlife too boring and love the concrete jungle.

#134 Dee on 08.12.15 at 10:11 pm

At 18, I moved all the way across the country and started over. I was basically cut off, financially and emotionally, from my parents. (It’s a long story, but it mostly has to do with ultra-conservative Catholic parents, the late 90s, and queer/transgender identity stuff.)

It was hard, and I was so bitter. Hard not to understand why. Sometimes things were ok, sometimes I was homeless. I took crap jobs for almost no pay just to eat. I survived some winters only because I had fled to the west coast where there wasn’t real winter.

Anyway, this isn’t meant to be a sob story. I managed to get a full-time job that started my career, then landed one at a university which allowed me to take classes while working. Worked full time, put myself through a bachelor’s degree, and am now 33, 11 years into a career, making about triple the median income and doing well, financially -and- personally.

I mention all this today because of Joe’s story. If I’d had the option, I might have moved home. I might have just given up. Instead I had to figure it out or starve. And for as many mistakes as I made and as hard as it was, well…let’s just say it makes me unable to fathom the half of my generation still living at home.

If I had advice for parents: you don’t have to go as far as mine did, but…kick your kids out of the basement. There are opportunities out there. They may not be as good as sitting at home playing Xbox, and they might mean moving to another province (or the US), but the opportunities are out there. And it’s a lot easier to find them when rent’s due than when you never have to get off the couch.

I’m glad I got The Struggle out of the way in my 20s. Even at my relatively young age, things are already easier. Life is good.

#135 Tom from Missisauga on 08.12.15 at 10:14 pm

Harper got the electorate right in the hormones. Majority government on the way.

#136 Johnathan on 08.12.15 at 10:19 pm

The home Reno credit is an absolute joke. Two people with the same salary, and one of them pays more tax because he didn’t renovate his house ?

And forget upping HBP , why do we even have it? Someone should be allowed to defer taxes until retirement , for the purpose of buying a house as quick as possible ? Isn’t it obvious that this tax assisted , down payment savings tool, only adds (taxpayer) dollars into the RE market, thereby pushing markets higher ? Isn’t it obvious that anything we do to make houses easier to buy, does exactly that , and by adding buyers just boosts their prices?

I hope voters are made aware of how stupid these propose tax goodies are. As taxpayers , we all pay for everyone of them. Would you like me to take some of your tax $, and give it to someone else so they can buy a house or renovate ? Wake up people !

#137 OttawaMike on 08.12.15 at 10:20 pm

#54 Just so you know on 08.12.15 at 7:07 pm

That rate hike should be quantified as a “symbolic” rate hike.

#22 Just so you know on 08.12.15 at 6:09 pm

Well said.

#138 OXI in GREECE !! on 08.12.15 at 10:22 pm

#14 Falstow on 08.12.15 at 5:46 pm
Apparently harper is going ‘to do something’ about the foreign home ownership “problem”…

http://www.news1130.com/2015/08/12/harper-promises-to-address-foreign-homeownership-if-re-elected/

because apparently people from china are owning the high end housing market…

http://www.vancouversun.com/business/Mainland+Chinese+dominating+high+Vancouver+real+estate+market/11282771/story.html

DELETED – anti-chinese. Or at least that was what happened the last time I posted a news media website link.

The lowest common denominator of politics. Blame the foreigner. — Garth

#139 Smoking Man on 08.12.15 at 10:34 pm

Retirement sucks.

I’ve done zero, nothing, on my book day 12 into retirement. I need to replace a bolt on my boat trailer. Haven’t done it. It would require me to go buy a drill bit, I have one some where.

I’m in neutral. My wife and I are ready to kill each other over nothing.

Our routines have been interrupted. Are daily tasks upside down.

I spend my time auditioning for move roles I’ll never do, making the craziest videos of myself talking crazy shit just to get reactions from the producers. So I can get a debate going.

Long winded resumes and bazaar head shots.

I’ve been bullying the literary science fiction writers group on linked in. I’m about to be kicked to the curb.

I tried jogging, took five steps and determined this is stupid and for the mindless..

Dogs, I need something meaningfully to do..

Suggestions please?

#140 Ken Jensen on 08.12.15 at 10:39 pm

Hi, Garth
The below news article aired on Global B.C tonight
It provided a % of Oversea investors in Vancouver and the number was astounding, Stephen Harper is once again saying he is promising B.C Real Estate Relief. I thought you would want to see this news clip.

http://globalnews.ca/video/2162849/stephen-harper-promises-b-c-real-estate-relief

#141 Marco on 08.12.15 at 10:39 pm

For the off chance you missed this:

From the Globe and mail.

“Conservative Leader Stephen Harper announced Wednesday that if re-elected his party would boost the maximum amount that first-time home buyers can withdraw from their RRSPs to purchase a home under the Home Buyers’ Plan from $25,000 to $35,000.”

To save or not to save that is the Conservatives question.

Cheers.

#142 Leo Trollstoy on 08.12.15 at 10:40 pm

#130 Frank on 08.12.15 at 9:58 pm

Fantastic summary.

Spot on.

#143 Holy Crap Wheres The Tylenol on 08.12.15 at 10:43 pm

#9 Bytor the Snow Dog on 08.12.15 at 5:37 pm
@blue steel:

You beat me to it. Post #1 HAS to be sarcasm, right?

Right?
———————————-
Vote for Harper, Mulclair, Trudeau anyway you put it they are all the same! Politicians, they all tell you what you want to hear and them do the opposite when in power. So for all of you out there thinking one is better than the other your all f#%ked up! The next guy is just as bad as the last and the next! Seen it all before boys!

The Who said it right! Won’t get fooled again!
Meet the new boss,
Same as the old boss,
Good luck suckers, I’m laughing at all of the pathetic Loosers who think change is a coming!
There ain’t no change a comin boys!

#144 Stupesing in Cabbagetown on 08.12.15 at 10:44 pm

#75 Jess.

Unfortunately, one does not have to leave the country to find leveraged investors losing their homes or their life savings. Here’s an example from the MFDA web site. Also unfortunately, the main stream media in Canada does not often tell these stories.

#145 Smoking Man on 08.12.15 at 10:45 pm

#122 Nosty, etc. on 08.12.15 at 9:37 pm

You are no simpleton.. You get it. How you find those links is amazing.

Im your number 1 fan

#146 Godth on 08.12.15 at 10:51 pm

Kidults

So we’re clearly going to talk about the the McMansion, Hummer generation right? Hahaha how pathetic is this blog?

#147 OttawaMike on 08.12.15 at 10:58 pm

Federal election is driving Conservative politicians from their comfortable burrows in Ottawa:
Our Guiding Force is Cheeses

#148 John in mtl on 08.12.15 at 11:04 pm

@#142 Holy Crap Wheres The Tylenol on 08.12.15 at 10:43 pm: …”Vote for Harper, Mulclair, Trudeau anyway you put it they are all the same! Politicians, they all tell you what you want to hear and them do the opposite when in power. …”

Pat Condell says exactly the same thing but with such Brit humour! Substitute the word “Britain” with “Canada”.

“We have a democracy problem”:
https://dotsub.com/view/11a1c73e-1352-4150-8318-f235be081543

#149 raider on 08.12.15 at 11:05 pm

Hell, even Canadian Immigration is sloppy these days. I’ve never seen that long wait times on temporary resident applications and PR applications in a decade. Just as we (foreign) started our business, employed (local) people, work on raising more capital to scale, the entire thing starts deteriorating. Rising input costs (CAD vs. USD) and a challenging business climate are one thing, but if we have to move operations to the US or Germany because of a financially illiterate electorate and/or officialdom riding the wave of immigrant which-hunt that would be a much more sour pill to swallow.

I’d also hate getting NR4s for all the REITs and fancy financial assets (thanks to Garth’s blog/books) I’d acquired in Canada over the years, if we’d to move.

I maybe a vocal minority, but I think foreign investors see a lot of other red flags here. It maybe a good meme to satisfy the masses and stoke fear in the RE market, but capital outflows tell a different story.

As I saw on one of those doomer websites the other day: “Numbers Never Lie — Central Bankers, Politicians, Lawyers, and the MSM Do”

Yea go hunt the guy who allegedly ‘smuggles’ 100K yuan into the country, and take down another who raises a mint to actually create jobs. Btw., not that I want to buy RE anytime soon, but do a back-of-the-envelope calculation what your allegedly foreign-money-laundering neighbor contributed to the country alone in land-transfer and RE taxes. By the pure contribution he’s probably a better patriot than many are by their source deductions in a decade.

This economy is so wired to foreign trade, and business investment, the last thing you want is to run a campaign on Xenophobia. If my kid wouldn’t have a Canadian passport, I’d be far less committed. It’ll be odd thing to explain to him the difference between Poppy’s and Iron Crosses, and the premises that made this place great, should this happen …

#150 };-) aka Devil's Advocate on 08.12.15 at 11:09 pm

It is what it is… a product of the new world order. You might think it wrong but, ultimately, the free market prevails and things SHIFT to create a new equilibrium that better supports that which we, en masse, most favour.

You can’t fight it… It is what it is.

Accept it… Ride the tide.

Life is meant to be lived not wished away.

It is what it is.

Do your own thing.

Live and let live.

You are no more right than they are wrong.

#151 Mulcair vs Harper on 08.12.15 at 11:13 pm

#76 Mulcair vs Harper

What’s the difference between Mulcair and Harper (according to this blog)?

Mulcair foolishly mortgaged his house several times.

Harper wisely mortgages the Canadian economy.

According to this blog, they are both wanting. — Garth

That’s like saying they are both politicians. Obviously.

#152 Godth on 08.12.15 at 11:15 pm

#38 Steve French on 08.12.15 at 6:39 pm

Hahaha. Boomers are the most entitled, f-cked up generation to have ever inhabited this planet. Oh well, their kids will pay to clean up their mess and their grandchildren will die. Round and round she goes – where she stops nobody knows.

Hilarious they have the temerity to call out the younger generations for the greatest misallocation of resources they created and benefited from.

#153 Hot Alberta Money on 08.12.15 at 11:17 pm

<bThe next generation can’t mature fast enough. This one’s a disgrace.

But at least we’ll get gender neutral bathrooms out of it

#154 ed on 08.12.15 at 11:18 pm

RE Anti-Chinese Racism

Historically, racism seems to increase when the economy is in trouble–finding a scapegoat is less painful than doing the real work of fixing what’s wrong. I hope this is not the beginning of a bad stretch (economically, culturally, and mentally).

#155 Trump card on 08.12.15 at 11:23 pm

Harper is playing the Trump card.
Just changed the colour to yellow.

What’s his next surprize?
Fast tracking 50K Palestinian refugees under the temporary foreign worker program?

#156 Godth on 08.12.15 at 11:23 pm

#138 Smoking Man on 08.12.15 at 10:34 pm

Read a farking book.
http://www.goodreads.com/book/show/479399.Lectures_on_Ancient_Philosophy

…or something. Take up bird watching? At the very least get into fine wine. Sfursat – delicious.

#157 Ronaldo on 08.12.15 at 11:24 pm

#123 New Babblemaster on 08.12.15 at 9:41 pm

”They will, I think, eventually give outright grants to people to buy houses.”

When I purchased my first home in 1969 there was the “Home Owner Grant” of $1000 given to us and you had to live in the house for 3 years in order to keep it. It represented about 5% of the value of the house at the time. I would not be at all surprised to see something like that once again or even lengthening the amortization periods to keep the party going. These fools never learn.

#158 Millmech on 08.12.15 at 11:26 pm

Got invited to a dinner at friends parents house two weeks ago,he just broke up with gf,he has moved back in with Mom and Dad,makes six figures,mid forties.I was absolutely floored,was waiting for him to show me his room(lol),which from what I understood was right besides his sisters who has been living there for three years since her seperation.Crap I left home at sixteen and put myself through school and higher education.Was raised with too much pride,would rather be homeless(and was for a while in my youth)than to crawl back home a failure!

#159 Trump card v2 on 08.12.15 at 11:34 pm

Harper will promise to legalize pot to offset Yellen’s symbolic move.

He grows his hair like Justin and takes out a mortgage on his house like Thomas and all the other average Canadians of his sheeple.

#160 Trump card v2 on 08.12.15 at 11:38 pm

#130 Leo Trollstoy on 08.12.15 at 9:56 pm

#97 fleabitten monkey on 08.12.15 at 8:43 pm

How did they determine that buyers were from mainland China?

Birth certificate? Passport? Both?

—-

Waterboarding.

Or the buyers were washing their Lambos on their driveway with the tears of the (Canadian) 99%-ers.

#161 Smoking Man on 08.12.15 at 11:44 pm

I’m hammered, playing checkers against myself.

I can’t lose.

It’s the definition of success.

Why can’t you bastards get it……

#162 Ken Nash on 08.12.15 at 11:47 pm

Stellar angst laced post Garth Turner. I fear things are worse than Joe thinks. It isn’t delayed adulthood living at home for a few extra bucks. Like it’s choice. For too many it’s basic survival. It’s living at home because income from precarious part-time work doesn’t cut it. Sure there’s the few who get great public sector jobs. Same there’s a few who win the lottery.

My biggest fear is losing a whole well educated aimless generation. It’s not just Canada. In India and China a whole generation of men are being passed over for marriage. Seems women prefer older more stable suiters. There’s way too much in common with 1914.

It’s always bugged me one of the things which has the biggest impact, on people’s day to life,is the economy. It’s also one of the things they have least control over. Blog dogs exempt of course. I also really admire capitalism and how efficiently labour is allocated.

I truly hope this generation can find meaning and purpose in life which isn’t wrapped in patriotism, heroism, war and death. I have many hopes and wishes for life. My deepest wish is my kids outlive and have peaceful productive lives. I’m not too sure on the odds. Many ISIL fighters are alienated youth from the west looking for a cause.

I’ve been getting email from Barry Shurman lately promoting the reason the cost of housing is so high. Is a lack of supply. A glossy magazine is coming on Rural Living. It’s main thing is how rural folk deserve urban amenities and private land ownership is sacred. Pretty sure it’s just to push my buttons. It’s working lol.

It disturbs me when the Prime Minister announces 20,000 Syrian refugees are to be taken. Not because of any xenophobic feeling but because it was made at a Golf and Country Club, owned by a developer, who happens to own 18,000 hectares where they’d like to build North America’s largest housing project ever Seaton. I suspect they’re getting the purchasers in place. It’s not fair to the refugees who I’m sure would prefer to live in their homeland if it was safe. You just know it’ll be an urban wasteland of identical, soul sucking town houses. We should really try to build places want to live not have to live. Not rob countries of their most capable citizens as refugees.

It’s makes no sense to keep following the same house construction economic policy. Every time I hear infrastructure stimulus I cringe. More unsustainable urban sprawl highways the next generation has to bear the cost of. On their minimum wage jobs……

Actually I’m little depressed. Was just talking to my son, he said it’s his birthday Friday and going out with friends. I had to ask how old are you buddy. He replied I’ll be 24. In my mind his age is stuck at 20 it’s really not fair.

When I was 24 I’d just graduate from college in 1983. times where tough so I went to university. It was easy paying for it and having an apartment. I had a grunt job at Lever Brothers paying $28,000 a year. If I was in school it was easy to make $12,000 with overtime over the summer. On the weekend, during school had a couple of part-time jobs The Beer Store and a Gulf Gas Station.

I never see companies advertising for summer jobs anymore. Part-time work for 20 somethings is really tough to find especially students. In the 70s and 80s most of gas stations, Tims and you name it where all part-time students. Now their adults a lot less turn over and training required.

#163 horny v2 on 08.12.15 at 11:51 pm

#158 Millmech

Was raised with too much pride,would rather be homeless(and was for a while in my youth)than to crawl back home a failure!

This sounds like a version of Canadian house horny.

Historically multi-generations lived together all over the world.

Wide variety of choices, solutions vs peer pressure one-and-only good… Where is this love for totalitarianism coming from?

#164 James on 08.12.15 at 11:54 pm

#130 Frank on 08.12.15 at 9:58 pm

Bravo! Great post

#165 raider on 08.12.15 at 11:55 pm

Here is your demand-side for foreign RE investment in Vancover, Toronto, and Montreal …
http://www.scmp.com/news/world/article/1842688/canadas-new-millionaire-migration-scheme-gets-just-six-applications-snub
“In fact six (6) applicants have applied under the ‘Immigrant Investor Venture Pilot Program’…”

#166 European, The Big Question on 08.12.15 at 11:59 pm

The big question is: how many “first time” home buyers actually have 70k in RRSPs?

A lot of the people who currently are wealthy and have this amount in their RRSPs are technically not first time buyers. But according to the plan they can still qualify for the plan if they haven’t owned the place where they lived for the last 4 years.

What the Tory plan is actually targeting are the wealthy buyers who for the last 4 years have been renting (which qualifies them for the plan if they haven’t used it already), to jump in and buy and ultimately keep the housing gas bag inflated.

This is very cunning by the Tories.

They want to push everyone who is capable financially but who hasn’t bought a place already to do so.

Stephen Harper is a very cunning type of guy.

Be weary, he might win the election just based on this years policies, or at least steal some seats from the NDP who might form a minority government.

Harper is feeding the people what they want, but not what they necessarily need. As Garth would say, this will not end well.

#167 Bottoms_Up on 08.13.15 at 12:03 am

#16 Llewelyn on 08.12.15 at 5:52 pm
—————————
Wish i had the clip but didnt harper come out and fully support wrights moves, only to can him a week later? Something doesn’t seem to add up.

#168 Trump card v2 on 08.13.15 at 12:05 am

139 Smoking Man

Retirement sucks.

Dogs, I need something meaningfully to do..

Suggestions please?

—–

I took you less than 2 weeks to realize the importance of tax farm slavery for the masses.

Now you want to climb back like a drug addict to rattle the cage.

Change that f’in bolt and sale away, you fool free man.
Take that damn Kurt Vonnegut book with you and look for ice nine.

#169 Bottoms_Up on 08.13.15 at 12:05 am

#157 Ronaldo on 08.12.15 at 11:24 pm
——————————
These fools never learn, yet it worked out ok for you.

#170 Bottoms_Up on 08.13.15 at 12:16 am

#143 Holy Crap Wheres The Tylenol on 08.12.15 at 10:43 pm
———————-
Yes, yes there will be change. The liberals will respect our verterans. They will cancel the F35 purchase (hoping). They will fund peace-keeping missions. They will fund science and allow scientists to speak. They will not muzzle their own MPs. They will speak to the media. They will not stick to “talking points” in the house. They will not prorogue parliament. They will fund daycares. They will attend UN climate change talks and set respectable federal targets. They will make us proud to be Canadian again.

#171 debtified on 08.13.15 at 12:17 am

#139 Smoking Man on 08.12.15 at 10:34 pm

Don’t give up, Smokie!

I am in a similar situation like you but I wouldn’t call mine retirement. I am too young to retire but I did quit my job so I can do whatever the hell I want. It’s a habit of mine. I’ve done this before. I give myself a year or two to do just whatever before returning to the tax farm.

Just like you, no progress on whatever the hell it is that I want to do.

But no worries. The good thing is that I don’t really have to worry too much about having the money to pay the bills. Also not touching the retirement funds (they’re for when I actually retire for real – no government hand outs for me.). Also no debt and I can always find income if and when I need to.

Take your time. Don’t stress too much. I think a change of scenery can be good for you. Travel. Why don’t you find a place where you can be inspired. You can live there while you finish your book. You can get a nice beachfront place and have a couple of Amazons attend to your needs. Some great writers have done it.

Good luck!

P.S. You haven’t been that funny lately either.

#172 Bottoms_Up on 08.13.15 at 12:21 am

#136 Johnathan on 08.12.15 at 10:19 pm
————————————
I think you missed the point. The home reno tax credit is a credit toward the work done on the house. It has nothing to do with salary. And it also serves to bring the underground cash economy into the taxation system, as people need receipts to claim the reimbursement.

#173 Trump card v2 on 08.13.15 at 12:28 am

The current playlist on Garth’s iPod:

Losing My Religion – R.E.M.
Zombie – The Cranberries
Another Brick In the Wall – Pink Floyd
Orange Crush – R.E.M
With Or Without You – U2
The Final Countdown – Europe
November Rain – Guns N’ Roses
Everybody Hurts – R.E.M.
High By The Beach – Lana Del Rey
Imagine – John Lennon

#174 Greg on 08.13.15 at 12:37 am

Hi 122 Nosty,
With the glut in oil and running out of places to put it all. Maybe someone want all the storage tanks full?
I just wondered if you’ve seen any of the stuff floating around the web if you search, ‘cern comet Sept. 22-28, 2015 500 days to stop’? (Don’t waste a lot of time on it.)
Remember People have been saying stuff like it through history, and those dates just come and go without anything happening. No reason to think now is any different. But nowadays people try and sell you books and stuff before hand, then think up the next date so they can try selling more stuff.

#175 raisemyrent on 08.13.15 at 12:45 am

Smoking Man: meditate. Maybe try the headspace app. I’m not being funny. The key to sleeping in and spending time “not doing anything” (ie working) is peace of mind.

Frank
That may be true to an extent, in the sense that it seems to be a human trait, to look back and reminisce for the good old days. However, I shouldn’t point out that things are changing faster all the time. Technology society communications etc seem to have hit the logarithmic rate of expansion. This means generations are consistently significantly different from their predecessors. A carpenter in Roman times was barely different from a carpenter in pre medieval times. These days we can laugh at ourselves let alone our parents if we’re old enough and remember how we used to do certain things (remember the old method of scanning credit cards with the pass trough paper thingy?). I suggest reading Ray kurzweil’s essay on the singularity. It touched on many things (good for you too smokey), but my main take away point is the rate of expansion of things seems to be plottable and logarithmic and once she takes off, all bets are off.
Oh, here it is:

http://www.kurzweilai.net/the-law-of-accelerating-returns

#176 tkid on 08.13.15 at 12:49 am

Smokey, volunteer. No, I don’t mean hand out tea and biscuits to the unfortunate. Find a charity who needs technical help or a coder. Are you good at explaining tech things to people – you could help train others to use the internet/computers/software or to program.

This will keep your own skills sharp, look good on the resume, and keep you busy.

Try looking for telecommuting jobs for the US – yeah it’ll be working from home, but it will be more fun than staring at a wall.

#177 Entrepreneur on 08.13.15 at 1:03 am

Believe me if a young person had a choice he would not live at home. It is easy to criticize.

#62 Spectacle…time, spend time with your child. Try to do something active (things like throwing ball, playing games outside). Keep it simple, enjoyable and don’t throw your weight around. Another caring suggestion is to hug and you don’t need words. The world is a better place with a hug.

#64 Sentry…And who has been in power in BC for the last 16 years? The Liberals. Wake up time, this is 2015.

#178 MF on 08.13.15 at 1:11 am

#158 Millmech on 08.12.15 at 11:26 pm

Lol that is funny (and yes sad).

Did you guys go to the basement together and play super Nintendo after dinner ? :)

Okay on topic. Staying at home has advantages if you are close with your parents like myself it can be good to save money and have a good start. Higher OSAP loans, necessary unpaid internships, longer time to find full time work/livable wage are still big issues that can’t be ignored. Likewise, I come across lots of older people who were kicked out at 19 and never were able to get ahead as a result. These are usually the folks who are 45-50 and never had enough saved for a down payment that would have enabled them to participate in the greatest housing run this country has seen. This blog is composed of financially literate, smart folks (mostly lol), they would have been successful regardless. Being forced out on their own merely started the process a little earlier.

While my generation is financially illiterate, coddled, and very house horny there are some positives. On the whole I think we are less materialistic than the previous two generations. Yup less materialistic. Sure there are the leased Audi’s, 8$ morning coffees, and nice clothes but there are also a lot of us who live frugally and value the experience of life over dollars. I will go even as far to say that after seeing the boomers and gen x get into messy divorces, we make sure to marry out of love and choose very wisely. Many of us (like myself) saw our parents get beaten down for decades so they could get the pension at the end. My dad (mom stayed home) worked his butt off and I forever grateful for it but the lifestyle he had is not attractive to me at all.

We understand and realize that the times have changed and that the old model of: school->work->retire with pension is not how it goes for most of us anymore. So we have adapted. I think that is what people are getting at when they say we are lazy (like the comment above about the young MBA’s at the office). We work hard all right, but it’s only when we feel the work is going to be acknowledged in some form.

This ties in with real estate because people can make money on the side flipping properties, or even just having their home “appreciate forever”. It’s almost like a business that is on the side to supplement an often lackluster income. Believe me when I say no one cares about paying off their mortgage.

MF

#179 SWL1976 on 08.13.15 at 1:42 am

#139 Smoking Man

Dogs, I need something meaningfully to do..

Suggestions please?

Work on your book and treat it like a job. Get out of the house on your laptop if needed to get away from the wife. Heck rent some space that will inspire you and get you out of the house at the same time

Enjoy your retirement. Don’t be such a dumb bastard to think you need a job to keep you sane. That’s insane.

Human nature is to always want what we do not have rather then simply enjoying what we do have

Just finish the dam book you can’t leave your 39 fans hangin

#180 Turtle on 08.13.15 at 2:04 am

Harper is going after the voters with houses… Not owners of the houses, but people who stuck with houses. “You vote for me and I’ll help you forever, or vote against me and meet the House Orange Crush”.

Next morning NDP/LIB will (should) come up with 60% increase (instead of Harper’s 40%) or … why stop there… lets say 100% increase… upto $100k per family. And plus double the Harper’s child benefit. And everything he throws to public they should just double with promises. (People of Alberta ate it gladly. It’s a textbook). Just play your cards against Harper’s cards and you will be on top. Harper had a whole lifetime (two terms!!!) to do things right … Who cares about his gifts now…

ABC – for “Anybody But Cons”. I like it. No Harper, no Oliver.
H – for “History”,
O – for “whO?”

#181 We the Boomers: Messed Up on 08.13.15 at 2:45 am

Taught College/University for past 20 years.

The Millenials are great (tolerant, easy going, etc.). Their only flaw is that they are self-entitled.

Whose fault is that? Our fault, we the Boomers.

We have told them they can do no wrong, we have choreographed their lives, ensured they cannot walk to school unless they have an armed detachment, what can we expect of them when we have mollycoddled them all of the way?

Harper is pimping the only part left of our GDP that is growing, real estate, and playing the xenophobia card which is shameful. For the latter alone, he should lose this election.

#182 Confused millenial on 08.13.15 at 2:59 am

http://business.financialpost.com/news/energy/cracks-may-begin-to-appear-in-canadian-bank-earnings-as-oil-downturn-persists

Looks like people who were praising Canadian banks in the last post were wrong.

As for the boomer vs millenial debate… 1960s and 1970s were the peak years for humanity in virtually every aspect of life: tech, social relations, quality of life etc etc. Internet, computers, etc was developed (at least conceptually) around that time – what we’re seeing now is just implementation of those ideas/concepts in practice. Think about it this way: humans could land on the Moon in the 60’s, but we can’t now. Why? I dunno, I’m just a lazy, dumb, entitled millennial, go ask the boomers… In conclusion: the boomers completely decimated the world their parents built and turned this planet into an unlivable shit pit – they’ve literally destroyed everything that held society together and now they blame millennials for being such miserable failures… Honestly, boomers, you should just stick to strumming your silly amplified guitars, you weren’t cut out for accomplishing much more than that.

#183 Tony on 08.13.15 at 3:47 am

Re: #75 jess on 08.12.15 at 7:40 pm

The ironic thing is this was before America’s zero interest rate policy which now causes most seniors to work until they drop dead.

#184 Londoner on 08.13.15 at 5:10 am

“…allowing a couple to now siphon $70,000 from their retirement savings instead of just $50,000…”

So let me get this straight – a first-time home buyer couple who have saved $50k for a down payment in their RRSPs (but nothing else) can now take out an RRSP loan for $20k, add it to their RRSP and take it out 3 months later under the HBP. The additional down payment won’t be considered borrowed since the funds came from their RRSP, but now the couple “qualify” to purchase a more expensive home. Is that correct? Could be a win-win for the Canadian Banks and their shareholders ;)

Seems like the government has just given the millennials a little more rope to go hang themselves with.

#185 Dominoes Lining Up on 08.13.15 at 6:53 am

Look away, ignore us, everything here is under control…..carry on as before….

BMO has just reported that the increase in personal debt is due to “smart purchases” like home renovations, and is therefore “good debt”.

Yep, personal debt they say has expanded from $76000 to $93000 in just one year.

But everything is just fine. And those houses need more granite, doncha know.

We can breathe a sigh of relief and thank Harper for promising even more money for home renos.

http://newsroom.bmo.com/manual-releases/The-Canadian-Debt-Picture–Home-and-Auto-Buying,-R

#186 Sheane Wallace on 08.13.15 at 7:03 am

#113 Amanda Hudson

Are you intentionally stupid? How frequently do you pay taxes that require you reaching out to your saving accounts? Do all your money go for paying taxes?

I was talking about savings, investments,.. Show me one person wiped out for not keeping their money in Ca pesso but in other stable currencies. I am not talking USD only here.

#187 Trump card v2 on 08.13.15 at 7:45 am

#175 raisemyrent

Smoking Man: meditate. Maybe try the headspace app.

Try float pad for meditation (H2O Float Spa, Danforth).

Don’t fall a sleep.

#188 Sheane Wallace on 08.13.15 at 7:55 am

#185 Dominoes Lining Up on 08.13.15 at 6:53 am
Look away, ignore us, everything here is under control…..carry on as before….

BMO has just reported that the increase in personal debt is due to “smart purchases” like home renovations, and is therefore “good debt”.

Yep, personal debt they say has expanded from $76000 to $93000 in just one year.
——————————

It means 17 k per person on average borrowed in the last year from the future to spend today on non-productive investments!

To support shrinking GDP…
Imagine what would happen without these spending.

Where this ‘money’ come from? Who saved them? It is not money folks, it is coupons.

#189 Sheane Wallace on 08.13.15 at 7:56 am

Where these ‘money’ came from? Who saved it? It is not money folks, it is coupons.

#190 Amanda Hudson on 08.13.15 at 8:03 am

To Sheane Wallace

The total amount of personal taxes Canadians pay are more than shelter, food combined, rent, mortgage etc. The last time I checked it was around 43% and are rising every year.

If this is not bad enough, unemployment, job losses, sickness, disability, divorce, legal problems, law suits, high debt to income, borrowing too much all add to your speculating, higher risk taking ways.

For most Canadians, that portion maybe 5% to 10% at best that they do have left should not be used for speculating and higher risks.

This is intentionally not just financially moronic but delusional if people think this will protect them and make them financially better off.

Currencies, metals, commodity indices etc. go up and down and are not meant to be used as a money game or switching in and out for fast profits, gains.

You never talk about the high fees and risk associated by this speculation and trading.

#191 Bob Santarossa on 08.13.15 at 8:23 am

#182 Confused Millenia

I was #181.

Could’nt agree with more kid.

After having taught a few thousand of you I have faith that your lot will change the world. In less than 10 years all of we Boomers will have retired. Then there will many, many jobs opening up. So kid, keep the faith and you will prosper at worst case sooner than that.

Ya we screwed up but hey, we gave you sex, drugs and rock and roll.

Harper is Gen X, I rest my case.

#192 Ret on 08.13.15 at 8:32 am

Borrowing from yourself may not be necessarily a bad idea if you save money on CMHC insurance premiums and pay the money back quickly into your RRSP. Yes, financial discipline required.

Financing those CMHC premiums on your mortgage and paying that interest charge with after tax money for the next 25 years will cost huge.

The premium calculator:

http://www.cmhc-schl.gc.ca/en/co/buho/buho_023.cfm

The premium chart:

http://www.cmhc.ca/en/co/moloin/moloin_005.cfm

#193 Broadway Limited on 08.13.15 at 8:48 am

‘…the Harper Conservatives have announced a massive 40% increase in the RRSP Home Buyer’s Plan’

Easy Garth. There’s an election going on. I can see why you’re angry that the Conservatives announced this foolish new tax break, but the reality is the the Liberals and NDP are even mosre ticked off, because Harper beat them to it.

That’s what passes for responsible government these days.

Vote Libertarian.

#194 Darlene Taylor on 08.13.15 at 8:57 am

To Tony #183, Jess #75

This was their financially engineering plan all the way. How else can they squeeze the retirees, seniors that don’t have company, workplace pensions like in the past.

A retiree or senior couple with say $400,000 that could of been making safely, 5% a year in interest back in 2006, 2007 is now getting about half that at best 2.5%, 2.6%.

This is $650 a month after taxes which most retirees, seniors are not earning close to $40,000 year annual income and are relatively in the lower income bracket due to higher personal amounts, non-refundable tax credits.

This $650 a month could pay most if not all of their property taxes, water, electricity bills each month for a modest size house.

#195 Polozified on 08.13.15 at 8:58 am

Letting people willingly destroy their futures in exchange for one more term as PM that he’ll probably quit half-way through anyway…

Sounds like Harper

#196 Leo Trollstoy on 08.13.15 at 9:00 am

#139 Smoking Man on 08.12.15 at 10:34 pm

Time to learn how to be

We are human beings, not human doings

#197 Siva on 08.13.15 at 9:02 am

Harper got the idea to ‘investigate’ from the ruling Australian conservatives

http://www.wsj.com/articles/australia-orders-more-foreign-homeowners-to-sell-1439024595

#198 Llewelyn on 08.13.15 at 9:03 am

Further to my earlier comments I found a copy of the correspondence that clearly implicates Stephen Harper in the Mike Duffy cover-up.

I know this is a financial blog but electing someone who holds Canadian voters in contempt cannot be good for our economy.

Our Prime Minister is trying to claim he was not aware of attempts to placate Mike Duffy and that Nigel Wright acted without his knowledge. Give me a break.

Green-Gable Gate has exposed our PM as a man who will go to any means to cover-up his mistakes. Canadian citizens deserve better!!

file://localhost/Users/user/Desktop/Montreal Simon: Nigel Wright, Stephen Harper, and the Great Con Cover Up.webarchive

#199 gut check on 08.13.15 at 9:05 am

#139 Smoking Man

Dogs, I need something meaningfully to do..

Suggestions please?
_________________________

Wanna be a patron to a crazy, rebellious surrealist artist? We can be Canada’s ‘Banksy’ but I need a crew. :)

By the way, Smokey, if you’ve never heard of Banksy I think you’d love him.

#200 Axehead on 08.13.15 at 9:08 am

#22 – after you take a breather from the Hubris you spouted on this blog, just vote NDP and you might just get your wish for Canada to tank.

#71 – that was a crappy anti-biblical rant; I stopped reading after the first paragraph; stay on topic dude.

#139 – I vote Garth ban Smoking Man until he learns English grammer; and he wants to write a book?

#201 Bottoms_Up on 08.13.15 at 9:19 am

#184 Londoner on 08.13.15 at 5:10 am
——————————-
The HBP rrsp withdrawl increase is a non-issue. $50,000 is already 5% downpayment on a million dollar home. If anything, increasing the limit to $70k means they can now put down 20% on a 350k home. I don’t see how this changes the market.

Because RRSPs are intended for future financial security, not present debt. This makes it worse. — Garth

#202 waiting on the westcoast on 08.13.15 at 9:19 am

#124 New Babblemaster on 08.12.15 at 9:41 pm
“Exactly!!!!! I said months ago they would do anything to keep this bubble going and you, Garth, said NOoooo. Now do you see the light? This is only the beginning. They will, I think, eventually give outright grants to people to buy houses.”

Even if they give grants, the money deluge is too large for the government to stop it. Their goal is to delay the problem until the election so they have a shot at maintaining power. Post that, all hell should break loose.

#203 Sheane Wallace on 08.13.15 at 9:38 am

#190 Amanda Hudson

Majority of the taxes for majority of the people are withhold at source/company they work for.

If you have business you pay some taxes at year end but payroll and HST regularly through the year.

If you think investing, diversifying for people that do have money (I clearly point to the savers and investors) is gambling, speculating and risky then you are at the wrong blog.

If you have no money why do you care?

And the solution according to you to all the problems (including diving loonie) is to hold saving accounts in CAD because Euro or USD are more risky?

If you truly believe that you might be needing some serious professional help either from a financial advisor or a psychiatrist.

#204 maxx on 08.13.15 at 9:45 am

#2 Never gonna end on 08.12.15 at 5:19 pm

“Ha, the crash really isn’t going to happen is it? We’ll be dead long before the can is kicked into the cul-de-sac.

I waited and waited and rented and rented, and I’ve missed out on years of payments and ownership and appreciation. For what? I have nothing to show for it, even a 30% correction would put houses back to what they cost back then, and I’ll have lost 5 years of equity.

I truly am the Greatest Fool! :(”

What in heaven’s name have you been doing with your savings?! If you haven’t taken advantage of all of the glorious avenues for saving and growing your money, there’s little hope.

You should get yourself a nice, fat mortgage and be done with it.

#205 Polozified on 08.13.15 at 9:49 am

#199 gut check on 08.13.15 at 9:05 am
#139 Smoking Man

Dogs, I need something meaningfully to do..

Suggestions please?
_________________________

Wanna be a patron to a crazy, rebellious surrealist artist? We can be Canada’s ‘Banksy’ but I need a crew. :)

By the way, Smokey, if you’ve never heard of Banksy I think you’d love him.
_______________________

Considering old man Smokey had neither heard of Hunter S. Thompson nor Kurt Vonnegut, it’s not likely he’s heard of Banksy.

But then again, Banksy wouldn’t pose as much of a problem to a dyslexic so maybe?

#206 Nora Lenderby on 08.13.15 at 9:56 am

#125 Shortymac on 08.12.15 at 9:45 pm
…I was absolutely shocked at my husband’s family and friends who subsidized their adult children’s lifestyles far beyond university and college years. Paying for cars, houses, cell phone bills, day care for grandkids, etc.
My MIL and her friends all get drunk on wine and complain about it, I suggest they just cut them off but they “can’t”.

Ah…perhaps a misunderstanding on your part? I also do this a lot. (Bloody science/engineering graduate…find solutions, fix things!)

You want to help a person who is complaining about something. Perhaps they are actually trawling for sympathy. What they want is for others to say, “Poor you! OMG how you suffer! You are such a good person sacrificing for your son/daughter!”

Perhaps they are fundamentally content with the situation because this means that they are still needed by their children. Or they hate confrontation and discord so much that they will be martyred for it.

Friends are Nature’s compensation for relatives :-)

#207 BC Working Guy on 08.13.15 at 9:58 am

My first job was in a gas station in Vancouver. I worked Saturday morning at 7am sharp, getting frost-bite on my hands from the propane. My friends were still partying from the Friday night before. I was the type of kid who always worked hard. When the boss asked me to stay longer or come in for an extra shift, I always said yes.

Fast forward twenty years–I’m still working my butt off in Metro Vancouver and I’ve got nothing to show for it. I have no hope of ever owning a home because it doesn’t matter how hard you work. Real estate prices are not connected with the local economy. We have some of the highest real estate prices in the world but lower average incomes than in most Canadian cities. There are all sorts of implications with that predicament and they’re not all economic in nature. If the boss asks me to stay late now or put in an extra shift, what do you think I am going to tell them? Of course I say no because there is essentially no reward, no incentive to work harder and longer hours. Just so I can pay more tax. Just so I can pay another toll over the bridge. It’s not like I can save up and buy a nice place or retire in comfort. There has to be some carrot dangling out for you, some reward that you are working towards to motivate you to take on that extra shift. With real estate being so disconnected from incomes, there is no carrot or reward for working harder.

One of the things I regret most in life is that I did work so hard as a teenager. I missed out on some really good parties working at my minimum wage gas station and then retail jobs. To the kid who says no to working on Sunday because they would rather go to the lake, I say good for you! I wish I had done that more when I was younger.

#208 Rational Optimist on 08.13.15 at 10:01 am

I don’t get the picture. Why is the OPP enforcing business licensing requirements? Shouldn’t municipal bylaw officers be the ones harassing this young entrepreneur?

Maybe he’s buying a lemonade. — Garth

#209 Nora Lenderby on 08.13.15 at 10:06 am

On the subject of the Great Smoking Man’s retirement: A book can be written about how money can’t buy contentment, but it can buy you choices.

My suggestion: If you can’t go into rehab (for all your apparent work, booze, tobacco, and gambling addictions) take your good lady and go on a cruise somewhere interesting with casinos (on-board and off). I know a person who does this practically full-time. Lots of distractions.

#210 Smoking Man on 08.13.15 at 10:07 am

#199 gut check on 08.13.15 at 9:05 am
#139 Smoking Man

Dogs, I need something meaningfully to do..

Suggestions please?
_________________________

Wanna be a patron to a crazy, rebellious surrealist artist? We can be Canada’s ‘Banksy’ but I need a crew. :)

By the way, Smokey, if you’ve never heard of Banksy I think you’d love him.
……

I’m in…

#211 AckNack on 08.13.15 at 10:14 am

This post is a very gutsy frontal attack by you, Garth, on the Harper government’s “do everything possible to get reelected” campaign strategy that screws us all. Wow. What a man! I salute you!

#212 Ronaldo on 08.13.15 at 10:14 am

My “dead end” diversified and balanced mutual fund portfolio with an MER of less than 1% is up 6.5% ytd while the TSX is down 3.3% and this is mostly due to my overseas and international funds which are doing handsomely well up 16 and 22% respectively. Nothing wrong with mutual funds if you have the right ones.

A non-deductible MER of 1% on mutual funds costs more than 1%, of course. — Garth

#213 -=jwk=- on 08.13.15 at 10:15 am

The cause of the housing bubble in Toronto and Vancouver is greenbelt laws, that is why other cities like Ottawa and Montreal have cheap housing, and I wouldn’t count on prices going down unless the Greenbelt Act and Agricultural Land Reserve are abolished.

Well in the vast lexicon of unfounded statements on this site, this one surely is in the top ten. Just… wow.

Have you heard of the national capital commision? Have you been to LA which is surrounded by huge mountains? Or Miami which is trapped by the swamps?

#214 George S on 08.13.15 at 10:23 am

Smoking man:
You are experiencing what a huge portion of the population is or will be experiencing soon.
If you have been working for the past 40 years it takes time to find your balance in retirement. There is a huge difference between spending 2 hours a day in the evening and part of the weekend at home and being there 24/7/365 with nothing to do. The worst thing you can do is consume mind altering drugs (ethanol and nicotine are two of the worst of them) to pass the time. The other worst thing you can do is micro (or nano) manage your spouse – it is as much a shock to them as you when you are around 24/7/365.

If you have quite a bit of money like you say you do then you can do whatever you want. You can write a book, publish it, and give it away free to your loyal fans and it doesn’t matter if it only sells 12 copies. You can do nothing if you want. Buy a bunch of DVD’s of tv shows. Treat your friends to lunch now and then. Buy a plane, go fly around.

There is a Simon and Garfunkel song about Tom and his plane. I always liked this line:

“got nothing to do today but smile…”

#215 BC Working Guy on 08.13.15 at 10:24 am

I just want to make one more point after reading through all these comments. I’ve been working since I was 16 and I’ve lived on my own since I was 19. I lived on my own because my parents had 3 kids in a 2 bedroom apartment because that’s all they could afford in Vancouver in the 1990s. There wasn’t enough room for me in the family home so I moved out as soon as I could I have a fierce independent spirit. There is no way I could ever go back to living with my parents. In the 1990s, I had a full time retail minimum wage job and I had net income of about $1000 per month. My share of the rent (I had roommates) was $350 in central Vancouver in an awesome apartment that was 2 floors and my bedroom had a balcony. Those were the days! The other $650 left over was for food, my fido cell bill (I had a cell phone when they first became popular in the 90s, paid for by my own job), hydro bill, bus pass, partying. Somehow I made ends meet. I did end up getting a second job shortly after I moved out so I guess my income would have been a bit higher than a $1000 a month (but both jobs taxed me based on one income so I ended up owing a big tax bill to Revenue Canada after a year or two of living on my own).

The point is I survived on a $1000 a month renting in Vancouver as a young 19yo kid and into my 20s. That experience teaches you that value of a dollar. I know how to budget my money. I know how to make my paycheque last. I never had a credit card. When I applied for one when I was 19 my bank denied me. They sent me a letter saying I met the requirements for credit but they were just going to deny me anyways!! Can you imagine! I guess that was before the days of easy credit. I learned to live within my means.

The other kids who were not working when they were 16, my friends who were out partying all the time. A lot of them lived with their parents until their mid to late twenties. They learned nothing about the personal financial responsibility I learned. Their parents paid for everything for them. A lot of those kids are now homeowners and are passing me by. Their parents helped them become homeowners and they get to enjoy more wealth and more social status than me. They look down at me as a renter but I know way more about personal financial responsibility than they do. The world has been turned on its head. Someone like me who works hard since the age of 16, strikes out on their own at 19 and learns personal responsibility and pays their own way in life does not get ahead. But the kids who lie at home and mooch of their parents throught their 20s and don’t learn a thing about how to budget your pay cheque and still have money left over for the hydro bill, those kids are now getting ahead financially as owners of condos helped out by their parents. Right wing capitalists on this blog who spout off about the need for hard work should think about that. It’s a different world now and it has been for some time because I’m not even young anymore.

#216 Turtle on 08.13.15 at 10:30 am

Re: Living with parents

You need time in your life to make mistakes and learn from them. It doesn’t have to be your first 30 years, but time before your first full-time job should be enough. This way you have the rest of your life to recover from your youth and enjoy the memories. Living with your parents doesn’t help you succeed any of this.

Do you remember how your dad tought you to ride a bicycle? He took off training wheels not to hurt you, but to set you free. Was it a wonderful experience?

This is how it goes: take a full control of your life.

#217 Chris on 08.13.15 at 10:33 am

@jwk: 213

It’s hard to argue that the Greenbelt Act doesn’t drive up urban housing prices. Toronto’s chief planner has said over and over that one of the goals of the Greenbelt is to drive urban densification, i.e., to explicitly drive a move towards condos and away from single family housing, by constraining the supply of single family housing.

As for the phenomenon of adults living at home, it’s not entirely about economics. It’s become so common that it’s becoming a social norm. I have a colleague at work whose 20 year old daughter lives at home because she is afraid to go to college or university or to get a full time job, somewhat like a Japanese Hikkomori type situation.

#218 Sheane Wallace on 08.13.15 at 10:40 am

#207 BC Working Guy

You absolutely nailed it, man.
They are that cheap that they want to save on the carrots.

Ever thought of moving to a better place? Save some money and move to Spain, live and retire there, you will never ever look back.

#219 DisgustMadeMePost on 08.13.15 at 10:43 am

Vote buying .. Or bribery.

The election barely started and Mr Haroer is throwing around a lot of Milk Bone!

I find it all insulting … Almost like he thinks people can’t see through his actions.

#220 Mike T. on 08.13.15 at 10:47 am

how about those Toronto Blue Jays!

sellout crowds for mid week matinees in August, when’s the last time that happened? (hint – last year)

anyways, they provide plenty of entertaining distraction so you don’t notice the man made rules closing in on you

what does not change before and after an election? it’s a fun list!
lobbyists
mega rich crime families etc

#221 Ronaldo on 08.13.15 at 10:49 am

#190 Amanda Hudson

”Currencies, metals, commodity indices etc. go up and down and are not meant to be used as a money game or switching in and out for fast profits, gains.

You never talk about the high fees and risk associated by this speculation and trading.”

Most people are so fearful of risk that it’s no wonder that they never get anywhere in life. This is why it’s so easy for banks to make money when people are so afraid to take a bit of risk to get a conservative 7% return on their equity but would rather give their money to the banks for 1 1/2 to 2%. When everyone was fearful of buying precious metals in November of 2008, I loaded up on silver at $8.88 u.s. and held til May of 2011 and sold for $49.44 for a profit of 457%. The proceeds were placed in a USD savings account at the time that our dollar was $1.06 to the USD and as a result of our dollar now at around 76 cents, that investment has further increased by around 30%. My shares in IMG which i purchased in July for $1.53 are up 60% as of today. But I do agree that most people should not dabble in this because they do not understand it.

#222 Nora Lenderby on 08.13.15 at 10:53 am

Our Dear Leader needs Mr. T.’s dope slap for that latest announcement. Sigh. He can promise anything, it probably won’t be implemented. We could easily have austerity within a year or so.

It’s early in the campaign, what else is left in the Closet of Desperate-Moves-to-Get-Reelected?

Tax relief on mortgage interest!

#223 lee on 08.13.15 at 10:59 am

This RRSP change shouldn’t have much of an impact. If a couple can already take $50,000 from RRSPs now they will already be at the limit of CMHC insurance for a house if they put 5% down. Surely this change won’t have couples rushing to use the additional $20,000 down between them to buy and leverage a house for 1.1 Million? They really don’t get much more for that additional $100,000, yet their carrying costs increase $400 to $500 a month. I say it is just window dressing by the Cs. If they use the $20,000 to increase their down payment on the $1,000,000 house, then this is not altogether bad. Although I do not see most people being that responsible.

#224 Daisy Mae on 08.13.15 at 11:04 am

#158: “Got invited to a dinner at friends parents house two weeks ago,he just broke up with gf,he has moved back in with Mom and Dad….right besides his sisters who has been living there for three years….”

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

Two losers being enabled by parents. I know a widow who allows her three to live with her, probably because she doesn’t want to be alone….so make that three.

#225 Next Youtube Star? on 08.13.15 at 11:05 am

#139 Smoking Man on 08.12.15 at 10:34 pm
….

I spend my time auditioning for move roles I’ll never do, making the craziest videos of myself talking crazy shit just to get reactions from the producers. So I can get a debate going.

Forget the movie roles and start a youtube channel. You might get a cult following…

#226 Smoking Man on 08.13.15 at 11:09 am

Screw this. Senica bound.

Talk to you dogs tonight.

#227 Holy Crap Wheres The Tylenol on 08.13.15 at 11:13 am

#170 Bottoms_Up on 08.13.15 at 12:16 am
#143 Holy Crap Wheres The Tylenol on 08.12.15 at 10:43 pm
———————-
Yes, yes there will be change. The liberals will respect our verterans. They will cancel the F35 purchase (hoping). They will fund peace-keeping missions. They will fund science and allow scientists to speak. They will not muzzle their own MPs. They will speak to the media. They will not stick to “talking points” in the house. They will not prorogue parliament. They will fund daycares. They will attend UN climate change talks and set respectable federal targets. They will make us proud to be Canadian again.
___________________________________________
Your sound like a very socially conscious respectable person. However you are delusional my friend. A politician, any politician will throw you and the rest of us under the buss to save their own sorry asses. Lib’s NPD, Torys will all do the same. Pigs at the trough once they eat for free they cannot stop themselves. Read George Orwell’s Animal Farm! It doesn’t end well for the masses. Meet the new Boss same as the old boss.

#228 JSS on 08.13.15 at 11:24 am

Whoever said dividend growth investing was dead…

Emera Approves a 19% Increase in Common Dividend and Increases Dividend Growth Target to 8% Annually to 2019.

http://investors.emera.com/file.aspx?IID=4072693&FID=30658400

Have a great day!

#229 maxx on 08.13.15 at 11:25 am

#19 Julia on 08.12.15 at 5:53 pm

#10 Small_Town_Steve
“I have had the displeasure of having to work with these PeterPan adult children. Unreliable as heck because they have no responsibility. “No can’t work Sunday I’m going to the lake!” I end up replacing them asap.”

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

I hear you. My colleagues and I will be busting our a$$es early morning and leaving late and these “kids” will come in late, leave early because they need balance.
Then one day, after working, like, a year, they “deserve” a raise and a promotion.

Agree completely. These are generally the same soon-to-be greater fools who barely deign to look at you when fielding a personal call at service counters. USA-style retailing is not the Canadian way. We are simply pock-marked with sporadic good service.

#230 Here there on 08.13.15 at 11:30 am

Re: Joe’s conundrum, have not a suggestion to put forward. However, as one Joe, an observation, perhaps everything has to do with the Joe name. Every chart, survey of people, good or bad, always include something for the average Joe. Even Kias, “are good for the average Joe.” Once upon a time there was one Joe in politics, by all accounts, straight like an arrow and honest to a fault. Beside, that in personal life his last name being rejected. He retired from politics, after his back being the target of so many knifes. And all from his “bodies” in his own party. Like a patient of an acupuncture practitioner, working piece work by the needles. On the other hand, don’t change the name to Richard.

#231 gut check on 08.13.15 at 11:34 am

#210 Smoking Man on 08.13.15 at 10:07 am
#199 gut check on 08.13.15 at 9:05 am
#139 Smoking Man

Dogs, I need something meaningfully to do..

Suggestions please?
_________________________

Wanna be a patron to a crazy, rebellious surrealist artist? We can be Canada’s ‘Banksy’ but I need a crew. :)

By the way, Smokey, if you’ve never heard of Banksy I think you’d love him.
……

I’m in…

__________________________

okay – I’ll be in touch

#232 Mister Obvious on 08.13.15 at 11:35 am

BC Working Guy…

Four cornerstones of success:

1. Work hard
2. Save much
3. Invest wisely
4. Have patience

Number 1 alone is not enough. You have proven that.

You need all four. I have proven that.

#233 Holy Crap Wheres The Tylenol on 08.13.15 at 11:36 am

#139 Smoking Man on 08.12.15 at 10:34 pm
Retirement sucks.
I’ve done zero, nothing, on my book day 12 into retirement. I need to replace a bolt on my boat trailer. Haven’t done it. It would require me to go buy a drill bit, I have one some where.
I’m in neutral. My wife and I are ready to kill each other over nothing.
Our routines have been interrupted. Are daily tasks upside down.
I spend my time auditioning for move roles I’ll never do, making the craziest videos of myself talking crazy shit just to get reactions from the producers. So I can get a debate going.
Long winded resumes and bazaar head shots.
I’ve been bullying the literary science fiction writers group on linked in. I’m about to be kicked to the curb.
I tried jogging, took five steps and determined this is stupid and for the mindless..
Dogs, I need something meaningfully to do..
Suggestions please?

_____________________________________________
I told you retirement sucks. that is why I semi retired. My one son is in complete control of the company as of September. I however have retained ownership. That gets divided up on my demise! I have sailed all summer and was considering sailing to Lake Superior perhaps to Chicago for a couple of weeks. Still may do it. The one thing I have found that on my travels as a semi retired Engineer that I am constantly talking to my peers that I meet along the way and we are always discussing on how can we apply our knowledge towards new technological breakthroughs. It is actually enlightening to have the freedom to think outside the box as I don’t really have to worry about the company any more. Met up with another Engineer and an accountant both retired at a Marina on Lake Erie. We are all now working on something new and exciting that we think may be a great item to sell. It is completely outside of my former companies scope and doesn’t interfere with them. We are in the preliminary steps of starting a small funded corp to prove out the idea. So If I recall you were a Computer language programmer. Talk with your friends through some ideas around, perhaps you can come up with something to keep you in the game. My wife has been semi-retired for some ten years or so but kept herself busy with community projects, participating with at risk children with disabilities at one of the schools. Our grandchildren only take up so much of her time. She said if she sat at home and watched TV or sat with her iPad all day she would be a fat, unhappy, cranky, piece of dirt! Actually it was some Irish word I don’t quite know what it means but dirt is close enough!
P.S Send you wife to Seneca Niagara for two weeks. Tell her to enjoy her vacation while you do your ground work. Then tell her to go and volunteer for something! Sounds like she need something to do as much as you!
Good luck buddy!

#234 Holy Crap Wheres The Tylenol on 08.13.15 at 11:39 am

#219 DisgustMadeMePost on 08.13.15 at 10:43 am

Vote buying .. Or bribery.
The election barely started and Mr Haroer is throwing around a lot of Milk Bone!
I find it all insulting … Almost like he thinks people can’t see through his actions.
_____________________________________________
Isn’t that what the Liberals did with the Gas Plants? It only cost us 1 billion dollars for that bribe!

#235 BUY MY VOTE on 08.13.15 at 11:44 am

#15 Matt on 08.12.15 at 5:50 pm
http://www.theglobeandmail.com/report-on-business/rob-commentary/vancouver-is-mortgaging-its-future-for-a-market-thats-anything-but-free/article25558615/
__________________________________________
So far I agree with you that this article is as clear and correct as you are ever going to get on the subject of foreign ownership and government intervention of the market.
I particularly like the part where he sums it up as the market has transferred the wealth from the future to the present, therefore pricing out all local buyers, and enriching present homeowners.
A tragedy, and why I am not voting Cons this time.

#236 Rainclouds on 08.13.15 at 11:56 am

Rational Optimist on 08.13.15 at 10:01 am
I don’t get the picture. Why is the OPP enforcing business licensing requirements? Shouldn’t municipal bylaw officers be the ones harassing this young entrepreneur?

Maybe he’s buying a lemonade. — Garth

-Not very rational, OR optimistic……………..

#237 Paul on 08.13.15 at 11:59 am

#234 Holy Crap Wheres The Tylenol on 08.13.15 at 11:39 am

#219 DisgustMadeMePost on 08.13.15 at 10:43 am

Vote buying .. Or bribery.
The election barely started and Mr Haroer is throwing around a lot of Milk Bone!
I find it all insulting … Almost like he thinks people can’t see through his actions.
_____________________________________________
Isn’t that what the Liberals did with the Gas Plants? It only cost us 1 billion dollars for that bribe!
———————————————————-
Yes the Federal Liberals also thew over two billion on their famous job creator The long gun registration.

#238 Rexx Rock on 08.13.15 at 12:11 pm

I’m tired of the media spewing lies all the time about interest rates will rise.They been saying that since 2011.Blah,blah,blah.Poloz shoud come out and tell the truth for a change and just say we will continue to have low rates forever.We are just going to do what Japan is doing,no more stupid speeches are needed anymore.

#239 omg the original on 08.13.15 at 12:15 pm

Re – Todays Picture of Police at lemonade stand

Stopped at a kids’ lemonade stand here in Victoria a few days back.

I asked how much and their mother said it was by donation.

She said it was what kids had to do now to make sure the bylaw enforcement people cannot shut them down.

I sure am glad some $100k per year civil servant is protecting me from unscrupulous lemonade selling kids.

Now if government would just put as much effort into regulating the MLS system.

#240 Vundo on 08.13.15 at 12:17 pm

I see some people here scoffing at the notion of “good debt.” People of my generation need student loans if we are to get the post secondary education needed to enter professions like law, medicine, etc. I do not know any educated professionals who did not take some student loans nor do any of them regret it. Only the richest, most spoiled people of my generation can afford an undergrad degree without any loans (even when parents can afford to pay everything, some choose not to). It was a different world for the boomers who brag about saving money from their summer jobs to pay tuition, living expenses, and more for the rest of the year. Anyhow, student loans are low interest and repayment terms are generous. They are not a lifelong commitment if you have the means and the discipline to pay them back quickly. There is no way I would be making the kind of money I do today without having taken them. That’s a debt I am happy to manage. Compared to loans with higher interest, less flexible payments, and that did not result in something that increases my income: student debt is good debt. Knowing how to save and invest would not do me much good if I could not generate any income to start with.

I even credit my student loan with putting off my mortgage aspirations until I learned why not to pursue the single asset strategy. If I had no debt and a good salary when I was younger I would probably have jumped in.

#241 Drill Baby Drill on 08.13.15 at 12:19 pm

The incredible stupidity of the statements from the environmentalists is truly astounding. Canada produces 1.6% of the worlds total GHG emissions. Without the jobs that O&G development produce including spin-offs there would be scant funds for government programs of all stripes. All governments including provincial and municipal would be very hard pressed to make payments and or provide any proper level of service. Canada is an oil and gas exporting nation. The federal transfer payments would literally dry up. We need a much more informed debate with facts that are correct. Many in Canada need a reality check big time.

#242 gut check on 08.13.15 at 12:19 pm

#224 Daisy Mae on 08.13.15 at 11:04 am
#158: “Got invited to a dinner at friends parents house two weeks ago,he just broke up with gf,he has moved back in with Mom and Dad….right besides his sisters who has been living there for three years….”

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

Two losers being enabled by parents. I know a widow who allows her three to live with her, probably because she doesn’t want to be alone….so make that three.
_______________________________________

heaven forfend!

#243 Holy Crap Wheres The Tylenol on 08.13.15 at 12:32 pm

#237 Paul on 08.13.15 at 11:59 am

#234 Holy Crap Wheres The Tylenol on 08.13.15 at 11:39 am

#219 DisgustMadeMePost on 08.13.15 at 10:43 am

Vote buying .. Or bribery.
The election barely started and Mr Haroer is throwing around a lot of Milk Bone!
I find it all insulting … Almost like he thinks people can’t see through his actions.
_____________________________________________
Isn’t that what the Liberals did with the Gas Plants? It only cost us 1 billion dollars for that bribe!
———————————————————-
Yes the Federal Liberals also thew over two billion on their famous job creator The long gun registration.
____________________________________________
Oh shit I also forgot sponsorship scandal, “AdScam” or Sponsorgate. Thanks for reminding me of the Long Gun hodo.

#244 jess on 08.13.15 at 12:47 pm

Source: Toronto Community Housing

By the numbers

The Toronto Community Housing Corporation is big by many measures
$2.6 billion What the TCHC’s current repair backlog will cost 10 years from now
$896 million Backlog of repair costs as of Jan. 1
60,000 Number of families that call TCHC buildings home
2,154Number of buildings TCHC owns
42 Average age of TCHC buildings
===========================
The City of Toronto’s Seniors Strategy for Toronto (draft February 2013) states that the Ontario Ministry of Infrastructure projects
individuals 55 years and above will make up over a third of Toronto’s population by 2031, with he fastest growing cohort being seniors over the age of 80. TCHC predicts that within ten years,seniors will represent 34% of its tenant group.
http://www.ombudstoronto.ca/sites/default/files/Final%20Report%20TCHC.pdf
==================

By: Laurie Monsenbraaten
http://www.torontorealtyblog.com/archives/9057
“Condos Becoming Part Of Toronto’s Affordable Housing Toolbox”
In Toronto, developer Great Gulf began negotiations in 2008 with the city to donate four condos to the Kehilla Affordable Housing Program.The non-profit housing provider serving the Jewish community was the first to forge a deal with a developer to acquire condo units, for the nominal cost of $10 each. Rents — ranging from just under $700 for two bachelor units, to between $700 and $900 for one-bedroom and two-bedroom apartments — cover condo fees, maintenance and administration costs.

Section 37
http://www.cbc.ca/news/canada/toronto/story/2013/04/25/toronto-section-37.html

=================
There are 156,358 households on waiting lists for affordable housing in Ontario.
Approximately: 56,000 are families with children.
40,000 are seniors.
59,000 are single people and couples
under 65.
The wait can be as short as a month
— or more than 10 years.
http://housingopensdoors.ca/index.php?lang=en

===============
http://www.cprn.org/documents/50555_EN.pdf
The report examines the five medium-sized cities in the province –

#245 SWL1976 on 08.13.15 at 12:54 pm

#199 gut check

Wanna be a patron to a crazy, rebellious surrealist artist? We can be Canada’s ‘Banksy’ but I need a crew. :)

This certainly sounds right up my ally.

If you’re serious… I’m in and could definitely bring something to the table

http://www.realitynext.ca/contact

#246 BS Meter Reader on 08.13.15 at 1:04 pm

#234 Holy Crap Wheres the Tylenol

Isn’t that what the Liberals did with the Gas Plants? It only cost us 1 billion dollars for that bribe!

—————————————————————-

Of course doing exactly the same thing with the gas plants was explicitly part of the campaign promises of both Timmy (never had a job in the real world) Hudak and Andrea (very confused right wing socialist) Horwath.

That’s the problem with you neocon types, Holy Crap, you are quick to project blame even when your parties are just as bad or worse, even proposing exactly the same measures.

Man up, fella, and face the tough truth, stop whining. It’s us, the whole population, that is to blame for messes like the gas plants. Politicians of all stripes merely opportunistically responded to that. Real leaders, not panderers, are increasingly rare.

Thank God Ontario has neither of those two other nincompoops in power now. At least the Liberals are somewhat predictable in their brand of politics.

#247 cramar on 08.13.15 at 1:17 pm

#232 Mister Obvious on 08.13.15 at 11:35 am
BC Working Guy…

Four cornerstones of success:

1. Work hard
2. Save much
3. Invest wisely
4. Have patience

Number 1 alone is not enough. You have proven that.

You need all four. I have proven that.

————–

I would respectfully add one more in there:

1. Work hard
2. Avoid debt
3. Save much
4. Invest wisely
5. Have patience

You need all five. I have proven that.

#248 DM in C on 08.13.15 at 1:23 pm

“Harper is Gen X, I rest my case.”

HELL NO he is not, Bob. We don’t claim him. He was born before Xers.

#249 IHCTD9 on 08.13.15 at 1:24 pm

#219 DisgustMadeMePost on 08.13.15 at 10:43 am
Vote buying .. Or bribery.

The election barely started and Mr Haroer is throwing around a lot of Milk Bone!

I find it all insulting … Almost like he thinks people can’t see through his actions.
___________________________________________

He does think people can’t see through his actions, – because they don’t.

Look at Ontario, Harris says he’ll get rid of Photo Radar and Boom! – he’s in.

McGuinty says he’ll give us another stat paid Holiday, Boom! – he’s in.

Watch what happens…

#250 Casual Observer on 08.13.15 at 1:34 pm

CMHC Releases Quarterly Results of its House Price Analysis and Assessment Framework for Canada and 15 Markets

OTTAWA, August 13, 2015 — Canada Mortgage and Housing Corporation (CMHC) released updated results today from its House Price Analysis and Assessment (HPAA) framework, which is designed to detect the presence of problematic conditions in Canadian housing markets…

Nationally, CMHC continues to detect a modest risk of overvaluation. However, our overall assessment of the risk of problematic conditions varies from centre to centre due to regional differences in housing markets…

The rise in house prices have not been matched by growth in personal disposable income, giving rise to a modest risk of overvaluation…

Low overall housing market risk is observed for Vancouver, as none of the individual risk factors are currently detected.

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2015/2015-08-13-1130.cfm

Apparently, CMHC doesn’t see a problem where the average house price is more than 10x the average income. I think they’ve been drinking the Kool-Aid.

#251 Holy Crap Wheres The Tylenol on 08.13.15 at 1:38 pm

#246 BS Meter Reader on 08.13.15 at 1:04 pm
#234 Holy Crap Wheres the Tylenol
Isn’t that what the Liberals did with the Gas Plants? It only cost us 1 billion dollars for that bribe!
—————————————————————-
Of course doing exactly the same thing with the gas plants was explicitly part of the campaign promises of both Timmy (never had a job in the real world) Hudak and Andrea (very confused right wing socialist) Horwath.
That’s the problem with you neocon types, Holy Crap, you are quick to project blame even when your parties are just as bad or worse, even proposing exactly the same measures.
Man up, fella, and face the tough truth, stop whining. It’s us, the whole population, that is to blame for messes like the gas plants. Politicians of all stripes merely opportunistically responded to that. Real leaders, not panderers, are increasingly rare.
Thank God Ontario has neither of those two other nincompoops in power now. At least the Liberals are somewhat predictable in their brand of politics.
________________________________________
You are either blind or stupid. I lived in the riding where the vote was bought! The Liberals were in power when it was canceled! Its on their watch just like any shit that’s occurred on Harper’s watch. You take have to assume responsibility for your actions when your in power either way. As for neCon…………..your hilarious. I am too old to give a shit about one party vs the other. I vote for the best candidate in my riding that will help me the most. I don’t care about you one bit or your riding at all as we all have different agendas. I would expect the same from you in return! Just merely saying same shit different day with politicians.
Please refer to
#143 Holy Crap Wheres The Tylenol on 08.12.15 at 10:43 pm
#227 Holy Crap Wheres The Tylenol on 08.13.15 at 11:13 am
Epic mike drop here……………………….boom………..

#252 Amanda Hudson on 08.13.15 at 1:41 pm

To Sheane Wallace

A typical response from a person that gives no substance and basis on how they make money from currencies, commodities etc.

I was not born yesterday, the fees and risks of what you call as a sure thing is B.S.

Speculators and traders, such as small amount of skin in the game put in by those that are not big banks and large financial institutions get burned by fees and manipulation of the market.

Peddle your fantasy land and dream world money returns to those that believe in Santa Clause and the Easter bunny.

To Ronoldo, add all the fees, transaction costs, manage fees, annual fees, trading fees, market loss risk, not having liquidity at times, you are living on a razors edge.

The big banks, financial institutions, big money players do not have these problems at any scale as the small people plus they get bailed out unlike us little people.

You had to put that little disclaimer at the end that most people should not………………….

People know this is rigged, manipulated big time, Ronaldo.

#253 Editrix on 08.13.15 at 1:43 pm

As you wrote not long ago, Garth – I miss F.

#254 Amanda Hudson on 08.13.15 at 1:43 pm

Trying to making hundreds of dollars into thousands in a shorter period of time compared to the past is not going to work longer term.

Nobody wants to save what they really need and want to make easy money, fast and think that they are on top. Good luck!

#255 Greg on 08.13.15 at 1:46 pm

Hi #236 Rainclouds,
All the cops I’ve personally run into, that were on or off duty, all seemed reasonable & quit human, especially if you interact with them in the same way. Thankfully the vast vast majority just want to help out when possible. IMO, it looks like the OPP in picture is holding a toonie perhaps, to make a purchase.
With luck the seller is planning to add some or all of it to there RRSP or TFSA, and the earlier the better to get that compound growth over time advantage.

#256 Pegger on 08.13.15 at 1:51 pm

http://www.winnipegsun.com/2015/08/13/toronto-regina-and-winnipeg-at-high-risk-of-housing-market-correction-cmhc

#257 OXI in GREECE !! on 08.13.15 at 1:57 pm

#138 OXI in GREECE !! on 08.12.15 at 10:22 pm
#14 Falstow on 08.12.15 at 5:46 pm
Apparently harper is going ‘to do something’ about the foreign home ownership “problem”…

http://www.news1130.com/2015/08/12/harper-promises-to-address-foreign-homeownership-if-re-elected/

because apparently people from china are owning the high end housing market…

http://www.vancouversun.com/business/Mainland+Chinese+dominating+high+Vancouver+real+estate+market/11282771/story.html

DELETED – anti-chinese. Or at least that was what happened the last time I posted a news media website link.

The lowest common denominator of politics. Blame the foreigner. — Garth

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

I actually blame the govt who purposely does not keep statistics which "would have" provided stability knowing the numbers and being able to act on them….like the rest of the world does.

PM Baloney got rid of the stats 20 years ago so the Libs and Tories are both to blame for doing NOTHING.

#258 Rana on 08.13.15 at 2:15 pm

People are the worst.

#259 Nagraj on 08.13.15 at 2:16 pm

Evidently Bay Str. is in quite the snit about the fact that the Americans and Japanese penned an auto agreement without telling anybody in Ottawa about it. I say this on the back of comments gleaned from the G&M. What is this about? Is eggs&cheese not as critical as we all thought? (The Mexicans were left out of the loop too.) Bay Str. likes the TPP – what’s goin’ on here?

The other question I have, speaking of surprises, has to do with the yuan devaluation. Boom! Did the PBoC really not telegraph that (policy change)? Of course a lower yuan blah blah blah BUT – lotsa questions.

And finally, a smaller mysteriosum, why did the CMHC (I get the order of letters in the acronym confused) discover a problem with house prices in Tronna today as opposed to yesterday?

[That Duffy looks like Humpty Dumpty. That Nigel person looks skinny as a broom, and he’s got this expression on his face which ALWAYS says “I’m so excited, I love you more than any words could possibly express, I am so happy” which is neither here nor there except that that look has achieved a certain fashionability – and it annoys me when I see it.]

#260 Shawn on 08.13.15 at 2:32 pm

MERs and tax Deductibility

#212 Ronaldo on 08.13.15 at 10:14 am
My “dead end” diversified and balanced mutual fund portfolio with an MER of less than 1% is up 6.5% ytd while the TSX is down 3.3% and this is mostly due to my overseas and international funds which are doing handsomely well up 16 and 22% respectively. Nothing wrong with mutual funds if you have the right ones.

A non-deductible MER of 1% on mutual funds costs more than 1%, of course. — Garth

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Actually, the 1% MER costs LESS than 1% after tax.

To illustrate. Imagine a money market mutual fund that earned 1% from straight interest investments (no capital gains or dividends which might complicate matters) but imagine it charged a 1% MER.

Without the MER the investor’s profit would be 1% and he makes 0.6% after tax, assuming marginal tax rate of 40%.

With the MER the profit to the investor is entirely eaten up by the MER and the investor’s return is nada, 0.0% pre-tax. And also 0.0% after tax.

The MER reduces the investors profit and therefore is effectively tax deductible as it reduces return on which tax is paid.

Cost to the investor of the 1% MER is 0.6% after tax.

In a Tax free savings account the cost of the MER in the example would be the full 1%. In no case is it higher than 1%.

The fact that the MER is effectively tax deductible (in substance though not in form) has been explained on this blog before.

I can understand that Garth apparently refuses to believe this. The notion of the non-deductibility of the MER is used as a marketing tool by portfolio managers. I suppose portfolio managers tend to have a mental block against believing that the MER in mutual funds reduces tax just like the deductible fee charged by a portfolio manager.

I also agree with Ronaldo that mutual funds can be good investments in certain cases.

#261 maxx on 08.13.15 at 2:32 pm

#54 Just so you know on 08.12.15 at 7:07 pm

Must have been the orange guy. ;-)

#262 Debtfree on 08.13.15 at 2:41 pm

No shame Steve now panders to the anti ham in van . If elected he will spend 500k to track Vancouver buyers . To what end ? Hard to believe that he would want that added to his base . Of course I don’t believe a word of it . He just keeps getting creepier and creepier .

#263 ETFs or MFs? on 08.13.15 at 2:58 pm

“A non-deductible MER of 1% on mutual funds costs more than 1%, of course. — Garth”

Garth, would you please elaborate on this? You mean this because it’s non-deductible, or some other reason?

#264 Andrew on 08.13.15 at 3:00 pm

#215

You might have been harder working than all your friends who mooched off their parents in their 20’s but there are plenty of arguments as to why they are ahead of you in terms of social status and personal wealth.

You moved out of home young with (I assume) little education and ended up working dead end jobs just to make ends meet. You didn’t divulge all of your professional career but I suspect you were severely hindered by your lack of money and freedom to spend in your early life. All you could do was work and pay bills.

Your friends, whilst at home, probably got a good education and obviously had little to no expenses. Eventually they wised up, moved out and landed a good job. You were probably still stuck making ends meet, living pay cheque to pay cheque in minimum wage jobs, whilst they were working their way up the career ladder. Within a few years of leaving home they probably surpassed you.

I hope your freedom in your early years was worth it because you’re paying for it now. There is a reason a lot of young people stay home until their mid-twenties and it isn’t always because they’re lazy bums who mooch off their parents. It is the sensible thing to do for the majority of youths today, particularly those going through University.

#265 Mister Obvious on 08.13.15 at 3:02 pm

#247 cramar

Thank you cramar, you are absolutely correct. I did indeed forget to add ‘avoid debt’ to my list.

Perhaps we should say ‘avoid needless debt‘ since it’s sometimes advantageous to borrow investment capital for certain enterprises provided a sound business plan is in place and due diligence has been done.

Of course, you will always have people making the argument that granite and stainless are necessities and thus justify taking on debt.

Yeah, maybe we should just simply say ‘avoid debt’.

#266 saskatoon on 08.13.15 at 3:15 pm

http://www.lemonadefreedom.com/

http://news.nationalpost.com/news/shutdown-of-7-year-olds-lemonade-stand-spurs-protest-apology

#267 PM's office on 08.13.15 at 3:46 pm

#259 Nagraj
Evidently Bay Str. is in quite the snit about the fact that the Americans and Japanese penned an auto agreement without telling anybody in Ottawa about it.

Oopps… so that’s why the Americans wanted to have a meeting. Mr Harper told us to tell them we had previous engagement to attend – he can’t stand Obama’s boys.

#268 cramar on 08.13.15 at 3:50 pm

Toronto most liveable city in the world!

http://www.blogto.com/city/2015/08/toronto_ranked_most_liveable_city_in_the_world/

Massive population increase (rats that is!):

http://www.blogto.com/city/2015/08/city_tackling_massive_rat_infestation_at_st_james_park/

Gives new meaning to a “million-dollar rat hole”.
Toronto housing market faces high risk of correction, CMHC says:

http://www.theglobeandmail.com/report-on-business/economy/housing/the-real-estate-beat/toronto-housing-market-faces-high-risk-of-correction-cmhc-says/article25952473/

#269 past perfect on 08.13.15 at 3:52 pm

#241 Drill Baby Drill

——-

Time for a facelift… run baby run

#270 past perfect on 08.13.15 at 3:55 pm

#226 Smoking Man on 08.13.15 at 11:09 am
Screw this. Senica bound.

Talk to you dogs tonight.

Probably not if at Senica bound at 11 am.

#271 cramar on 08.13.15 at 4:02 pm

#265 Mister Obvious on 08.13.15 at 3:02 pm
#247 cramar

Perhaps we should say ‘avoid needless debt‘ since it’s sometimes advantageous to borrow investment capital for certain enterprises provided a sound business plan is in place and due diligence has been done.

———–

Agree! Thought of this, but wanted to keep it short. Two areas where debt is usually necessary:
A) Funding a business idea as you suggested;
B) A house mortgage when the debt is REASONABLE! i.e. a couple making $100k with a $250k mortgage and no other debt. The same couple with a $800k mortgage is heading for disaster.

#272 Three cornerstones only on 08.13.15 at 4:06 pm

#232 Mister Obvious on 08.13.15 at 11:35 am
BC Working Guy…

Four cornerstones of success:

1. Work hard
2. Save much
3. Invest wisely
4. Have patience

Number 1 alone is not enough. You have proven that.

You need all four. I have proven that.

————–

I would respectfully add one more in there:

1. Work hard
2. Avoid debt
3. Save much
4. Invest wisely
5. Have patience

You need all five. I have proven that.

——

Three cornerstones of success suffice:

1. Have luck in where you are born and to whom, and especially in your physical and mental health and capabilities.
2. Have luck at different turns in your life, and in the political and economic environment of where you live
3. Work hard and be prepared to relocate in order to turn the odds of 2 in your favor. The harder to apply yourself, the better your odd, assuming your mental and physical capacities are good.

That’s all you need for success, I have proven that.

#273 Holy Crap Wheres The Tylenol on 08.13.15 at 4:11 pm

I think these guys pretty much sum up [email protected]#ked politics here in this country. Pink Floyd created influentially emblematic ballads regarding social political contentions in Britain at the time that changed the lives of many. It still applies today!

Big man, pig man, ha ha, charade you are
You well heeled big wheel, ha ha, charade you are
And when your hand is on your heart
You’re nearly a good laugh
Almost a joker
With your head down in the pig bin
Saying “keep on digging”
Pig stain on your fat chin
What do you hope to find?
When you’re down in the pig mine
You’re nearly a laugh
You’re nearly a laugh
But you’re really a cry.
Bus stop rat bag, ha ha, charade you are
You fucked up old hag, ha ha, charade you are
You radiate cold shafts of broken glass
You’re nearly a good laugh
Almost worth a quick grin
You like the feel of steel
You’re hot stuff with a hat pin
And good fun with a hand gun
You’re nearly a laugh
You’re nearly a laugh
But you’re really a cry.
Hey you Whitehouse, ha ha, charade you are
You house proud town mouse, ha ha, charade you are
You’re trying to keep our feelings off the street
You’re nearly a real treat
All tight lips and cold feet
And do you feel abused?
…..!…..!…..!…..!
You gotta stem the evil tide
And keep it all on the inside
Mary you’re nearly a treat
Mary you’re nearly a treat
But you’re really a cry.

Many thanks to Pink Floyd.

#274 chapter 9 on 08.13.15 at 4:30 pm

#241 Drill Baby Drill
The federal transfer payments would literally dry up.

O&G has been the driver of the Canadian economy and all regions greatly benefit. The province that has been the main recipient of transfer payments since it was conceived in 1957 has been Quebec.
For the fiscal year’s 2014-15 they will receive $19.6 Billion,this makes up 27% of total revenue. For the year 2015-16 a bump up to $20.4 Billion.
But it is interesting the fact that Alberta is the number one place to invest in O&G and Quebec is dead last. In fact of all the places in the world to invest in this sector Quebec ranks 133 out of 156. And were talking about some pretty backward unstable third world shit holes, really doesn’t say much about Quebec. With oil sinking closer into the 30 buck a barrel range, the only other way for the new government to offset falling resource revenue and keep Quebec happy-tax the hell out of everybody. No doubt this has already crossed the minds of Junior and Tom!!

#275 Godth on 08.13.15 at 4:53 pm

#191 Bob Santarossa on 08.13.15 at 8:23 am

Harper was born in ’56 – he’s all yours boomer Bob. Lay off the drugs maybe?

#276 lee on 08.13.15 at 4:54 pm

Kevin O’Leary says no cracks in Canadian housing. There you have it. Enough said.

#277 Renter's Revenge! on 08.13.15 at 5:06 pm

@Shawn

RE: MERs and tax Deductibility

So does that mean that a deductible 1% advisor’s fee only costs 0.2%?

1% (fee) – 0.4% (tax deduction) – 0.4% (tax not paid on interest not received)?

#278 Godth on 08.13.15 at 5:21 pm

What does contemporary culture sound like?

The Ennui of I
http://auticulture.com/liminalist/

Pathetic in the futility of it all.

#279 Smoking Man on 08.13.15 at 5:33 pm

#225 Next Youtube Star? on 08.13.15 at 11:05 am
#139 Smoking Man on 08.12.15 at 10:34 pm
….

I spend my time auditioning for move roles I’ll never do, making the craziest videos of myself talking crazy shit just to get reactions from the producers. So I can get a debate going.

Forget the movie roles and start a youtube channel. You might get a cult following…
……

That’s all I need, fame. Paparazzi following me to rub and tugs..

What? I got a bad back. And I’m a thrifty bastard.

A good RMT charges 100 bucks an hour.

A honey honey charges 60 on the Queen’s way.

It’s all about the math dogs. So the optics are bad. Try and convince the herd your not a slime ball after that photo hits the press.

I beilive Jack Layton…. :)

#280 family beagle on 08.13.15 at 5:35 pm

It’s about time they took down the Elm Street Nasty Grrls, with their numbers games and their Barbie napping tactics. Looks like a decent collar to me.

Cultures change. It’s expensive for a kid to make a go, branching out here, where I am in YVR, it’s not like 100 Mile House, where you’ve only got three priorities.

Anyway, a skit, delete as you please…

Ah, I’m reading Mainland Chinese take over Vancouver RE.

Like, from Abbotsford?

No, Mainland China.

As opposed to what?

Hong Kong, I dunno.

I thought you meant Lower Mainland, but they’ve always been here.

Really?

Well sure, they helped establish the Province of BC and were some of the people who brought rail and forged the Cariboo Trail in the 1800s. Pretty much every small town in BC and Alberta has a long standing and beloved Chinese ancestral community–just like other cultures, pioneers, and indigenous nations. That’s what makes us unique. The best authentic menu in the world is Ming’s in Vauxhall Alberta, walk past the cafe through to the dining room. I hope they are still there. Take a drive sometime.

Oh.

Are you afraid of investment changing the cultural mosaic of Vancouver?

I guess.

Don’t worry. They bring opportunity and concentrate it in a handy profit/tourist center that locals can benefit from. Think of it like having our own destination dot on the map of the aristocrasy. It’s a good thing. It means you’re safe here.

What about the cost of shelter?

If local wages won’t support Vancouver shelter, outlier communities will grow and Vancouver owners will pay more to entice services. It’s a cash cow for Langley, Mission, Tri-Cities who service the needs of the world’s wealthiest in our own backyard. Handy.

Huh.

It’s a slow transition that kicked off around Expo ’86. Vancouver is popular, sooo make $$$ in the city and buy cheap in some of the most beautiful rural countryside on the planet. This popularity of Vancouver will buy you time to develop other sources of revenue in complementary and primary industries.

How can we lower prices to make it affordable for locals again?

How does one become unpopular? Instead, maximize the efficiencies you’ve learned as a local to increase revenue and lower cost. Don’t buy. Rent in the city, or use hotels. Buy valuable rural outliers currently oversold. Steward growth into tourist/profit centers. Manage your popularity. I bought a cute RV park in 250. I’m giving tours of the wild west. I’m showing modern Lower Mainland Chinese where their ancestors journeyed.

Cool.

#281 Mark on 08.13.15 at 5:41 pm

I can understand that Garth apparently refuses to believe this. The notion of the non-deductibility of the MER is used as a marketing tool by portfolio managers. I suppose portfolio managers tend to have a mental block against believing that the MER in mutual funds reduces tax just like the deductible fee charged by a portfolio manager.

You’re both sort of right. Your logic applies perfectly well to taxable accounts, in which, the MER causes the fund to be able to deduct the management costs from taxable distributions. The result is that the net taxes in the hands of the unit-owners are less.

Garth is right when it comes to non-taxable investors/accounts, such as RRSPs, RRIFs, RESPs, where it is better to have the advice rendered in a fashion which can be used as a deduction.

I personally believe anyone in an advisory or money management capacity should work with their clients to minimize/optimize for taxes. But many ‘advisors’, particularly those mutual fund jockeys in strip mall kiosks, are not qualified to provide any tax advice. Between the usually overpriced funds they sell (most are fund salesmen, not true investment ‘advisors’), and the lack of proper comprehensive advice, such advisors often destroy value for their clients.

#282 granite guy on 08.13.15 at 5:45 pm

Grainte is an excellent kitchen surface. Stainless steel too. These are not really luxuries. Enjoy them in good health, you wont be awake to feel the surgeons stainelss steel knife, or alive to enjoy the granite on your tombstone.

#283 crossbordershopper on 08.13.15 at 6:09 pm

as a son of an italian immigrant over 60 years ago. I can tell you that there are a lot of negative stereotypes of Italian boys staying at home till their 30 plus years old. Yes, its true, not just in that culture, but others, and its not about finance. its about family. I know personally literally 30 guys that were or are in that position. I remember going out with girls and the issue does come up. the only downside is you dont have a place to bring a girl, easily solved by a motel, her place, my buddy’s place. Otherwise, people by nature are lazy, some very lazy. Welfare comes in various forms, some financial some otherwise. Why take a risk when you can stay home, why do you have to go out west for work, stay home with momma, expect less in life, and you can stay home. Europe is a perfect example of what Canada is becoming, not Norway, but Italy. Intergenerational families living under one roof, permenantly. Its not just he east Indians, its other cultures. its a group thing mentality not an individual ideal of your own life. The viewpoint is someone looks after you just like you looked after your parents

#284 IHCTD9 on 08.13.15 at 6:37 pm

#271 Three cornerstones only on 08.13.15 at 4:06 pm

Three cornerstones of success suffice:

1. Have luck in where you are born and to whom, and especially in your physical and mental health and capabilities.
2. Have luck at different turns in your life, and in the political and economic environment of where you live
3. Work hard and be prepared to relocate in order to turn the odds of 2 in your favor. The harder to apply yourself, the better your odd, assuming your mental and physical capacities are good.

That’s all you need for success, I have proven that.
____________________________________________

1. Absolutely, if you are born to a couple (or even worse a single) of dead beat parents, you are almost perfectly screwed right there. Not all the time, but most of the time. Understand I said deadbeat, not poor.

2. Luck has nothing to do with it. You make the best out of the hand you’re dealt. You can come a long ways with little over a lifetime.

3. Seems logical

I would add a couple practical considerations as well:

4. Marry someone who can earn. A single individual even at well above the average income is doomed to spinning his/her wheels trying to get anywhere these days. Marriage is worth consideration these days if not only for the financial benefits.

5. Learn to work with your hands. Fix your own car, do your own repairs around the house: plumbing, electrical, roofing, siding, windows, renovations etc..

6. Get the hell out of the big urban areas.

In my time on this planet, without having completed #4+5, my financial situation would be drastically different. My wife makes a great financial contribution to our household, and we’ve both saved 10’s of thousands over almost 17 years maintaining our house and vehicles ourselves.

To be blunt – #4 is critical, more critical than any other reason listed. #5 is worth more than giant raises, and loads of overtime as the effort is expended free from income taxes, and at about half the consumption taxes for what parts/materials you must purchase less the labour.

#4 and #5 combined put me ahead approx. 1.4 Million dollars compared to where I would have been without them over the last 17 years. As a single guy, I could never have accumulated that – not even close.

I know marriage is not about money, but IMHO, these days; earning potential should be really high on the list for all kinds of very good reasons…

#285 Entropic Entity on 08.13.15 at 11:06 pm

Sure, deadbeat progeny should be encouraged to leave at some point. On the other hand, it makes a lot of sense to let hard-working offspring stay at home to help give them a head start. We have two children whom we’ve managed to raise on a single income. The single income is important because it enables the non-working spouse to devote full time to supplementing the education system. Both kids got full scholarships for their first degrees. Through saving money by living at home the first one made it through med school with no debt. The second one is following the same path. They have worked hard and done so amazingly well that it is a pleasure to have them living with us until their careers take them elsewhere.

#286 Roland on 08.14.15 at 4:01 am

Well, I left the family home the day after high school ended (this was in the mid-1980’s). Found out what it was like to enter the job market with no skills, no experience, and no connections. For me, my late teens were not about having fun. Those years were about learning everything the hard way.

I would not want those years back and I do not have any nostalgia for that time period. However, I gained certain sorts of knowledge and experience that can scarcely be obtained in any other way. I am glad that I went through several years of struggle on my own before I ever set foot in university.

I would certainly encourage any youth to try to make it on their own. On the other hand, though, doing it all by yourself is harder now than it was in the mid-1980’s (and it wasn’t exactly easy then).

Two big reasons: First, entry-level rents have risen a lot faster than entry-level wages during the past 30 years. Second, post-secondary education costs have risen much faster than entry-level wages.

The only way in which the young people now have it better than I did then is that at least there are jobs available. In the 1980’s there often were not. Unfortunately, the wages today are quite bad. In terms of real purchasing power, the kids pushing mops or washing dishes now earn even less than I did thirty years ago.

So I can’t look down on the young people who remain living in the family home. Our society is changing. The sort of freedom, in terms of experimenting with your own life, that ordinary people enjoyed in the late 20th century, has been fading away and I don’t see any reversal of the trend.