Seriously?

RELAXED modified

She’s 41, divorced six years now, two teenagers and stumbled across this blog after Googling ‘real estate investing.’ Because this site also specializes in personal relationships, sexually-related housing fantasies, life planning, laundry strategies and canine health, Rony naturally felt compelled to spill her guts.

“When I was married we always struggled with money. We had it but not enough. Always talked about doing the landscaping on our house, taking trips etc. But spent our money just getting by.”

Divorces being what they are, Rony emerged with enough to finance a small townhouse, and lucked out on timing – the place has jumped in value. “But we’re crammed in here with 1 bathroom and it’s time to cash in. Here, north of Toronto, we have to move north to afford another home. I have no retirement savings as I had to pull it all out to survive during my divorce and there’s nothing at the end of the month to set aside to save either.”

I bring you Rony’s story as a small example of the mania engulfing us. Her wee townhouse grew more valuable, yielding increased equity even as she struggled monthly to pay the bills. So what did she do?

“I purchased a new house. Double the size of mine now and everyone has a washroom. I increased my current mortgage to get the deposit money and pay off line of credit debts and put money aside for my car payments to last over the next few years. I know I should have settled for pocketing the money and moving a lateral move, however this small home has increased my potential to have a large house at very little extra cost to me.

“My problem is this. I have put in all the upgrades I could dream of. Went overboard on the kitchen and hardwood throughout. But the houses in this new neighborhood are already sky rocketing so I feel comfortable that it would sell making a huge profit. However I’ve put all this into it as all the years with my ex we could never. And now without saving money that I don’t have am able to live in this wonderful house and do things for my kids. It’s magical to me really. But again….this hasn’t increased my value at all. In 3-5 years I would like to use the equity in my new house which is projected to go up in value by a few hundred thousand, in the hopes of purchasing my first income property. I feel it’s the best way to earn the most money. Since I didn’t put a chunk away and instead upgraded my house. I know you think it’s so foolish of me to not invest in the future and now be back where I was without anything. But I do want to have income properties. Unfortunately it will mean I am carrying huge costs as my mortgage will be high. But I hope in the years will pay off.”

Let’s review. Rony makes some money on her house. Although she’s living hand-to-mouth, with zero savings, the bank loans her a bigger pile of cash to buy a new house and a new car. She orders every possible upgrade. Dream kitchen. Hardwood. Twice the house. All financed. And does Rony, responsible for two children and now saddled with a big mortgage, worry?

Seriously? Of course not. Houses always go up. She’ll make “a few hundred thousand” and then be able to borrow against that to buy…more houses.

As you might imagine, I emailed this woman. “You’re an idiot,” I gently counseled. “When you should be saving for your kids and your future, you’re wallowing in house porn.”

And she said: “I do not have enough money to save the $20,000/year I will currently need to invest for my future therefore real estate it is! At this age in my life I have to play catch up. Use other people’s money to make money! I have chosen to invest in my primary residence and will look for other ways to make money.

“I guess I’m looking for someone to say, it’s ok. I deserve to be happy and have what I want for a change. 25 years to retirement is still long off. I could have money in 5 years from now landing a great new job! Or my biggest fear is I don’t live past 10 years and would have played it safe for nothing! I don’t know, I have heard from friends, investors, realtors, I’ve asked everyone. I get 50/50 split in answers. Any advice is greatly appreciated.”

People like this surround us. They see no risk in residential real estate, no matter the leverage or the over-consumption. They’ve partaken of the Kool-Aid dished out by realtors, the bankers, the media, their friends, co-workers and delusional relatives. They embody recency bias – the belief that what’s just happened will happen forever. Like most, they’re happy to buy high in the concrete belief higher will happen. After all, how bad could it be when everybody’s doing it? We all know that at any sign of trouble the government will move in. Besides, interest rates will never go up. “They can’t.”

Debt’s no longer scary. It’s just a monthly payment, not a giant obligation. Saving is hard. Budgeting is worse. Investing’s unknown. So why not have a one-asset strategy with tons of financing? It’s worked until now. So Garth must suck.

Well, occasionally I do. But Rony reminds us of the time bomb we now live with. If real estate fails to climb without end – and it shall not – then the fuse is lit. Hundreds of thousands of house-lusty martyrs will blow up, showering collateral damage upon every family that came to worship the HGTV god.

ISIS is scary. Rony terrifies.

239 comments ↓

#1 Bob on 11.23.15 at 7:14 pm

Please stop with the FIRST stupidity!

It’s annoying.

By the way did someone say “Thunderfury Blessed Blade of the Windseeker?”

#2 bdy sktrn on 11.23.15 at 7:15 pm

http://www.vancouversun.com/opinion/columnists/commentary+residents+want+victoria+foreign+home/11538522/story.html

Commentary: B.C. residents want Victoria to act on foreign home ownership

Demand is clear: it is time to legislate, not just talk about the issue, survey numbers suggest

#3 pwn3d on 11.23.15 at 7:16 pm

I called it right last year, and am calling it again… another big spring in the GTA. I think with rates will bump up a little (and already have a little) people will want to lock in to a 5 year “before it’s too late”. Also, I think municipalities will begin double land transfer tax by the end of next year, so that may move up future purchases. And who knows, maybe the carbon tax the Libs in Ontario are about to give us will also bump up the cost of building homes.

The GTA may finally peak spring 2016, so for the people waiting for a sale, give it 5 more years and it may be time!

#4 bdy sktrn on 11.23.15 at 7:18 pm

The influx of whales in waters near Victoria is being hailed as a “humpback comeback,” as it represents one of the biggest upticks in cetacean activity in recent years.

Researchers, marine scientists and whale-watching guides who cover the water between Victoria and Seattle have all reported significant humpback activity as the species begins to repopulate the Salish Sea, which includes the Strait of Georgia, Juan de Fuca Strait and Puget Sound.

A spate of recent photos taken by naturalists and whale-watching guides has given researchers unprecedented access to the pods of humpbacks currently travelling south to warmer waters.

“We’ve seen more humpbacks this year than ever, and they’re popping up everywhere,” said Capt. Mark Malleson of Victoria’s Prince of Whales Whale Watching.

http://www.vancouversun.com/travel/humpback+whale+comeback+they+popping+everywhere+waters/11537932/story.html

#5 unbalanced on 11.23.15 at 7:21 pm

She has drank way way to much Kool-ade.

#6 EINSTEIN on 11.23.15 at 7:23 pm

no wonder the man divorced her, how irresponsible…

#7 I'm stupid on 11.23.15 at 7:23 pm

Is it any wonder why this woman has lived hand to mouth all her life.

#8 DM in C on 11.23.15 at 7:24 pm

Wow. “I guess I’m looking for someone to say, it’s ok. I deserve to be happy and have what I want for a change.”

Sounds like she’s already living to get what she wants. She wanted a bigger house, a new car, her own bathroom (we had 5 in one house in the 80’s and one bathroom was fine).

At 41 she’s an entitled brat. Everything is I want I want I deserve.

No wonder there’s a divorce behind her already.

#9 Randy on 11.23.15 at 7:29 pm

can’t fix stupid.

#10 Bank of Millennial on 11.23.15 at 7:30 pm

Leverage is a weapon of mass destruction in the wrong hands.

#11 Bobs ur uncle on 11.23.15 at 7:30 pm

“Or my biggest fear is I don’t live past 10 years and would have played it safe for nothing!”

Your more realistic fear after you leverage yourself to the hilt is that house prices fall, and you end up losing it all and living in a cramped rental, or your car. Impossible? Ever hear of the prosperous US of A from 2008?? Nothing is quick and easy – you get what you work and plan for.

#12 Frank on 11.23.15 at 7:30 pm

Oh. My.God.

Please tell me those aren’t verbatim quotes. People put there think like this? I’m glad it’s worked so far but this woman is hosed in 2 years if property doesn’t rise in the same fashion. If it drops? Oh my god. She has kids…..poor financial choices should be considered child abuse.

#13 Island Girl on 11.23.15 at 7:30 pm

We are surrounded by people who think that way, having joined the throngs of homeowners this year for the first time in many years and still finding myself telling people that no this wasn’t a good financial investment but strictly an investment for shelter.

We’ve been in the house for 7 months now and we talk about the updates or upgrades we’d like to do, but the only things we’ve been willing to spend money on is landscaping to provide us food and the occasional fix to maintain the home. I’d rather save my money for more important things like retirement. Thankfully we budgeted for higher interest rates, so we’ll be fine there.

#14 Ray Skunk on 11.23.15 at 7:32 pm

Oh, I got one here too. Friend of mine boasting of her new house purchase on Facebook. Don’t know how much she paid, but it’s detached, appears to be habitable and in one of the less shittier parts of Toronto, so at least $800k by my reckoning. I doubt she pulls in more than $90k… her partner (of one year) probably less.

Just (as in, within the last month) started a job with a bank. You know, those places that are quietly shedding workers left, right and centre.

Risk? Pffft.

#15 BobC on 11.23.15 at 7:32 pm

Many may wonder why I as an American follow this blog. I have to admit it’s interesting and yes, a little entertaining to watch you guys follow Americas destructive path in both real estate and politics. You seem to be 6-7 years behind us. Good luck, maybe it is different there.

http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com//news/energy/the-average-house-in-fort-mcmurray-has-lost-117000-or-20-of-its-in-value-in-one-year

#16 Shawn on 11.23.15 at 7:33 pm

“People like this surround us. They see no risk in residential real estate, no matter the leverage or the over-consumption.”

People felt the same way about tech stocks in the late 1990s. Nortel was a portfolio favorite…

#17 BobC on 11.23.15 at 7:35 pm

I left out I thought just as she does. I knew I would be rich if I just had enough real estate. I was older then her too. I feel for her.

#18 Ralph Cramdown on 11.23.15 at 7:35 pm

It’s OK. You deserve to be happy and have what you want for a change.

God, I love counterparties!

#19 Canadian on 11.23.15 at 7:36 pm

Sound like the ex-husband should be counting his blessings.

#20 For those about to flop... on 11.23.15 at 7:37 pm

Geez boss, why didn’t you just call the post “Freedom First” since you are serving it up to the little dweeb on a platter .He don’t need no help bashing women, make him work for his corn at least.

#21 common sense on 11.23.15 at 7:38 pm

Funny…she made the choice and knows she is wrong, thus wants someone to say “it’s alright.”

Boy did she come to the wrong place…

#22 Buystander on 11.23.15 at 7:38 pm

Rony, sell the house at a profit now!!, rent, and invest your money (not in real estate). Your house at “little extra cost” to you is because rates are currently so low.

But G already advised you, and it sounds like you just don’t get it.

#23 Doug t on 11.23.15 at 7:42 pm

With the supercycle in commodities having come to a grinding halt worldwide now is not the time for spending money you don’t have – now is the time to watch and wait. If you have a job be thankful – roof over your head be thankful- some cash in savings be thankful- the lust for more and more useless trinkets never ended well

#24 dissenting voice on 11.23.15 at 7:50 pm

If she cashes out now that leverage will have served her well indeed. How are your balanced portfolios doing? 7 percent is a dream return. If this woman was able to save ten grand a year it would have made her an astounding 700 bucks. Wow, don’t spend it all in one place. And to save that ten grand, she and her kids would have to do without a lot of things that make their crappy lives bearable.

41 years old is pretty late to turn the ship around. Now she will fail or succeed spectacularly instead of penny pinching and praying for a return a few percent above inflation. How much have the house haters missed out on in the last decade? I’d be a million richer if I ignored the sooner voice in my head .

#25 Leo Trollstoy on 11.23.15 at 7:51 pm

Rony is insane.

Toronto real estate prices are insane.

This is getting stupid.

#26 Sixtyfourk on 11.23.15 at 7:53 pm

“You’re an idiot,” I gently counseled.

Best line ever.

I think the reason people are more comfortable with real estate investing vs investing has to do with volatility, not risk.

As Garth has shown real estate prices are “sticky”. People hold onto their houses rather than sell, which dampens volatility.

And, likely, most people look only at the stock market indices which can have relatively large swings over short periods of time.

All the newspapers and web sites will show that the S&P, Dow or Nasdaq is up 3% one day and down 2% the next. What they don’t show is that a balanced portfolio doesn’t swing so much.

Add to that the creative marketing that realtors employ — marketing that would land you in jail if you used the same on a financial asset — and is it any wonder we end up with people like Rony?

#27 boonerator on 11.23.15 at 7:53 pm

She wanted validation, not advice.
Emotions trump thinking every time.

#28 rk usa on 11.23.15 at 7:55 pm

National Post reported today

The average house in Fort McMurray has lost $117,000 or 20% of its in value in one year

this is going to be a bloodbath

expect prices to be down 50% once the real panic sets in by next spring

#29 Waiting on 11.23.15 at 7:56 pm

It seems that the powers that be are fueling the stockmarket for the rich and propping up real estate for the rest of us. Therefore we all think the times are great. This real estate insanity doesn’t actually end, does it? Really? Really??

#30 Leo Trollstoy on 11.23.15 at 7:56 pm

“I guess I’m looking for someone to say, it’s ok. I deserve to be happy and have what I want for a change.”

Rony is an idiot.

The tragedy in all this is that she is deliberately destroying the financial future of her children.

Her children deserve a better.

Her children deserve a better mother.

Seriously.

#31 will on 11.23.15 at 7:57 pm

So pathetic. I wouldn’t know where to begin.

Here is another sad story. A guy I work with bought one of those condos on the outskirts of Saskatoon that used to be a swamp. He told me the other day that a crack had formed on the ceiling in the bedroom. Again, I didn’t know where to begin, so I didn’t. It’s all so very sad.

#32 Leo Trollstoy on 11.23.15 at 7:57 pm

“I guess I’m looking for someone to say, it’s ok. I deserve to be happy and have what I want for a change.”

Rony is an idiot.

The tragedy in all this is that she is ignorantly and deliberately destroying the financial futures of her children.

Her children deserve a better mother.

Seriously.

Your comment is awaiting moderation.

#33 A Yank in BC on 11.23.15 at 7:58 pm

Maybe a little off topic.. but please refer to them as Daesh. They are not a State.

#34 Entrepreneur on 11.23.15 at 8:00 pm

I think Rony should have stayed with the husband: the teenage kids need a dad; the husband was probably more realistic on money issues; everyone can get into debt over their heads (a free-fall feeling); if have to write here to get okay, give your head a shake.

Bloggers who come on here correcting other blogger’s spelling errors should be DELETED.

Climate change deniers just put two and two together, add and subtract. B.C. has a carbon tax but see nothing productive come from it. Would like to hear B.C. Premier Christy Clark on how carbon tax benefitted climate change!!!

#35 Bby604 on 11.23.15 at 8:00 pm

The thing is this strategy is working, you can have it all even if ur broke …. just go see [email protected]

#36 Ronaldo on 11.23.15 at 8:04 pm

If Rony is any indication of what’s going on out there, we’re in for a sh+t storm.

Son tells me that a friend not long ago bought an acreage with large house and paid over 700 big ones for it even though the bank told him that in their opinion, it was only worth $550m. He owns 3 other condos all financed to the hilt and sliding underwater. One is vacant and has been for 3 months. Another, is rented to someone who hasn’t paid the rent for 3 months and even though they’ve been legally evicted their not moving. Guy’s been out of work for 3 months and hasn’t paid the rent since. Their staying put, can’t afford to move. The other is rented for less than it costs to service the mortgage, etc. He also figured that real estate will go up for ever. Guess where he lives? Oil country. I suspect there are many stories like that out there. Last I heard he still has his job.

#37 Julie on 11.23.15 at 8:05 pm

I’m a widow in my 50s with 3 kids. After my husband’s recent death, I sold our house and bought one for half the price and invested the difference. Being the sole financial support for my family, I wanted more money to invest and provide a cushion, not less! I couldn’t sleep at night if I had tons of debt – apparently I’m in the minority!

#38 Dirt Dog on 11.23.15 at 8:05 pm

It’s Magical……

#39 AB Boxster on 11.23.15 at 8:08 pm

There are likely a few Rony’s in Ft. Mac where the price of the avarage house is now down 20%. That’s a meagre $117 K.
Calgary/Edmonton next.

#40 Lea on 11.23.15 at 8:10 pm

Is 5 years the longest term fixed mortgage in Canada? If so, what happens if house values have decreased when you have to renew your mortgage?

Let’s say you buy a house for $100,000 with $20,000 down. At five years the value decreases to $70,000. What happens to the mortgage?

#41 Prairieboy43 on 11.23.15 at 8:11 pm

North Americans are in love with Cell Phones. 33hrs week. Text messages ave. 350-700 messages week.
33/7=4.7hrs/day.
No time to invest, read, or think. Just do!

#42 Freedom First on 11.23.15 at 8:13 pm

Kicked out the ex so she could do what she wanted and have him still pay for the kids. This is the new normal.

Guys, men are disposable. Aided and abetted by our anti-male divorce courts. Female hypergamy run riot.

#43 Retired WI Boomer on 11.23.15 at 8:15 pm

Rony baby, live it up! Yes, houses always go up -until they don’t!! Then, they might fall in value, while your mortgage increases beyond your ability to hold on! Then, Rony..baby… you become the part-time street walker to make ends meet.

Might be good training for the kids, since you haven’t a dam dime to help them beyond high school where they usually learn diddley-squat any way.

Good luck with your new life, let us know how it all works out for ya.

#44 jess on 11.23.15 at 8:17 pm

yellens response to savers vs spenders?

…”Warning that “an overly aggressive increase in rates would at most benefit savers only temporarily,” she argued in the letter released Monday in Washington that the Fed’s seven-year era of zero rates had sheltered American savers from dramatic declines in the value of their homes and retirement accounts.

“Many of these savers undoubtedly would have lost their jobs or pensions (or faced increased burdens from supporting unemployed children and grandchildren),” if the Fed had not acted with such force, she wrote.

An Open Letter To Chairwoman Yellen From the Savers of America
Posted October 30, 2015

#45 NOTHING SURPRISES on 11.23.15 at 8:18 pm

“I deserve to be happy and have what I want for a change.”

Rony, where did you get this from??

You said “I Do” many years ago and you felt you deserved to be happy on that day.

What happened?

Now you feel you deserve to be happy today!

You don’t deserve to be happy. You have to learn and earn what happiness is.

You’re a long way from that day!!

#46 Victoria Real Estate Update on 11.23.15 at 8:21 pm

# 2 bdy sktrn

“Commentary: B.C. residents want Victoria to act on foreign home ownership”

Last year, foreign buyers accounted for only 1.6% of sales in Victoria. (source: Victoria’s R/E board)

So far in 2015, SFH sales across Greater Victoria have been below Victoria’s long-term average.

SINGLE FAMILY HOME SALES

Total Single Family Home Sales
. . January through October. . .
. . . . . Greater Victoria. . . . . .
. . . . . . . . . . . . . . . . . . . . . .
2007…*****************
2015…**
————————————————
. . . . . . -5%. . . . . . . . . . 0%

(source: Victoria’s R/E board)

2015 has been a below average year for SFH sales in Greater Victoria (2007 was an average year).

SFH sales are behind 2007’s pace by 5.4%.

Let’s put 2015’s SFH sales total into proper perspective. To do that it will be necessary to consider the following important factors (that realtors rarely talk about):

1. INTEREST RATES

In October 2007, 5-year fixed mortgage rates were at 5.88% (second chart).

In October 2015, 5-year fixed rates were less than half of that, at 2.37%.

Realtors fear rising rates because they know that, in general, sales decrease and house prices fall as interest rates rise.

The opposite is also true – sales increase and prices rise as rates fall.

Looking at the above chart, it’s clear that 2015’s sales total should be much higher than 2007’s if we take interest rates into account.

How much higher should SFH sales be this year (compared to 2007) with today‘s highly stimulative rates? 30% higher? 40% higher? 50% higher?

It’s obvious that SFH sales have been extremely weak and disappointing so far in 2015.

2. POPULATION GROWTH IN GREATER VICTORIA SINCE 2007

This one is simple – more people (than in 2007) and more houses (than in 2007) should result in more SFH sales (than in 2007).

However, this is not the case.

If we take both of these factors (much lower interest rates and population growth) into account, it exposes just how weak SFH sales have been so far this year in Greater Victoria.

#47 Retired WI Boomer on 11.23.15 at 8:27 pm

Sold off some oils today -there is no future ‘there’ that is on the radar screen. You guys hang n as gas is below $2 a gallon here no uptick in sight. Yeah, I lost $$ on the trade, but WTF I made great dividends -while the company could afford to PAY dividends. io consider the sell a strategic move, much like selling GTA property these days. Do I know everything? No, but I smell something that says “cash speaks” coming down the lane,

By the way, you know that rate hike in December, it will be fantasy…

Stay tuned…

#48 Interstellar Old Yeller on 11.23.15 at 8:27 pm

Wow, is Rony ever barking up the wrong tree for approval on her money-making scheme.

Clearly, the world needs more gentle Garth counseling. There is no free lunch, Rony. Leverage cuts both ways. The status quo (e.g. housing appreciation, your employability) is not guaranteed to continue indefinitely.

I don’t have high hopes she’ll deviate from her course, but at least good advice was offered to her.

#49 MSM-Free Zone on 11.23.15 at 8:31 pm

Today’s blog must be the first installment of ‘wealth-preserving strategies’ that Garth had promised last week.

Congratulations to Rony’s ex-husband on his success.

#50 MSM-Free Zone on 11.23.15 at 8:33 pm

#37 Julie on 11.23.15 at 8:05 pm
_________________________

And congratulations to you as well, Julie.

You rock, girl.

#51 E Richard on 11.23.15 at 8:33 pm

Sounds like most of the Ontario women I met when I lived there for ten years, am same age as Rony. Neither of us had any money, lots of debt yet the I want to eat at a restaurant several times a week mentality was so common.

#52 Habs76-79 on 11.23.15 at 8:35 pm

Rony, probabaly has taken her ex to the cleaners. I bet he has not been able to contemplate the house porn and upgrades she gave her and the rug rats. I bet she takes him to court every year to jack up his child support. I’d not be surprise if he lives in a flea bag apartment at best and maybe out of his car at worse.

They say men in their 50’s suffer abnormally high suicide rates. Well think about it, divorce in a world where misandry is all over the place but only misogny is in the news and add “princess” wifes well maybe that’s why.

Rony, will like all too many others like her will DEMAND the governments Federal, Provincial and Municipal do all the can to protect her and them from their own idiocy and mastakes.

I hope they all fall on their collective faces.

#53 Ronaldo on 11.23.15 at 8:35 pm

#34 Entrepreneur

“Would like to hear B.C. Premier Christy Clark on how carbon tax benefitted climate change!!!”

May not have done anything for climate change but it would have put more change into the govs general fund for raises etc.

#54 Island renter on 11.23.15 at 8:37 pm

You can’t belame Rony, since she is lead the blind (by 70% Canadians) leading the blind and they aren’t only woman.
Just like the Herd, who voted in a teach in as our new PM. How will a part-time teach to save the mess the cons have left us in.
We are no different from our southernly neighbor, but maybe stupider not learning from their bubble. You can bet Trump is the next to be voted in.

#55 Mark on 11.23.15 at 8:43 pm

Starting to see a lot of, “if I could only sell my house”, “money’s a little tight to go on vacation this winter”, and various other financial grumblings (such as panics over broken waterheaters) in my Facebook feed. Not only from people I would suspect of having difficulty (ie: families in Calgary involved in O&G), but also even from those with the government jobs.

Probably the early signs of a lot more pain to come.

“Leverage is a weapon of mass destruction in the wrong hands.”

Over the long term, leverage doesn’t add value to RE investment, particularly on principal residences where there’s no deductibility of financing cost.

What’s the math show, that by the time one has paid off their loan, they’ve sent the bank enough payments to buy 2 or 3 houses?

#56 fan of freedom first on 11.23.15 at 8:44 pm

I love Freedom First!

Might as well read http://www.therationalmale.com

And: http://aaronsleazy.blogspot.ca/

Good stuff in addition to greaterfool.ca!

#57 Smoking Man on 11.23.15 at 8:48 pm

DELETED

#58 Mark on 11.23.15 at 8:52 pm

“Is 5 years the longest term fixed mortgage in Canada? ”

Per the Canada Interest Act, the longest period of fixed interest on a mortgage in Canada is effectively 5 years.

If so, what happens if house values have decreased when you have to renew your mortgage?

Chances are the bank will renew it, but demand additional risk premia (ie: a higher interest rate) on account of the fact that the collateral backing the loan is less valuable than it was previously.

Thus, what might have otherwise been a cheap mortgage renewal (because the BoC dropped rates to, say, -1%), ends up costing the same, if not more than the previous contract. IOW, the ‘real’ cost of credit rises.

Many mortgage contracts issued by the Canadian banks these days even have clauses which trigger an immediate maturity of the loan if the bank is unilaterally of the opinion that the collateral has dropped in value.

IOW, Canadian mortgages are so unilaterally in favour of the bank that I would personally refuse to ever sign one. But I’m glad to own shares in the banks who seem to have made a mockery of the low intelligence of Canadians when it comes to these matters. :)

Let’s say you buy a house for $100,000 with $20,000 down. At five years the value decreases to $70,000. What happens to the mortgage?

If you still have a job and the bank thinks you’ll be able to pay on the obligation going forward, then the bank renews it at a higher interest rate to account for the negative equity being an unsecured debt.

If you don’t have a job, then they demand repayment in full immediately, you default and go into personal bankruptcy if you can’t pay up, and the bank is made whole by the CMHC.

See a pattern? The bank has basically guaranteed that it will ‘win’, and actually grow its profitability at a time when significant number of people are losing their homes and suffering significant financial distress. That is, unless the CMHC/GoC decides to go to war with the banks. In which case, the risk is a systemic collapse in the Canadian economy.

#59 David on 11.23.15 at 8:52 pm

Rony, get all the house you can get your hands on! Don’t stop ’till you get enough, whoo!

Calamitous.

#60 Mike in Johnsonville on 11.23.15 at 8:54 pm

Buy your ‘Justin Trudeau is a MORON’ bumper sticker on eBay. Makes a great stocking stuffer!

http://www.ebay.ca/itm/181934385705

#61 Dual Citizen In Canada on 11.23.15 at 8:54 pm

So Garth, what’s the plan to save the 25,000 potential Ronys coming to Canada? We can’t let the Realturds get to them first!

#62 Hawk on 11.23.15 at 8:56 pm

I agree that in any normal scenario, what Rony is doing is a terrible idea.

But to play the devil’s advocate, I do wonder that if one has no savings at all, is already middle aged, (as is the case here) and is able to put chips on the casino table, with BORROWED money (and ofcourse is selfish too lol) then why not double down?

Too lose it all, when one has very little to begin with might be a calculated gamble. After all, a mortgage is not student debt, and it can be discharged by bankruptcy.

Or am I missing some important information that alters this scenario?

#63 entropic entity on 11.23.15 at 8:58 pm

“25 years to retirement is still long off.”

She may find those years zip by all too quickly while she slaves for the benefit of the banks. She also seems to be under the illusion that work is trivially easy right up until age 65. She has yet to learn that often people retire because they are burnt out, and that the last few years of work can be a real struggle.

#64 soleilsun77 on 11.23.15 at 9:00 pm

I feel like I know this woman…sounds like dozens of people I know. Funny how they are ALL going to be RICH from real estate (despite actually having enough household debt to drive a small country into the ground).

#65 Smoking Man on 11.23.15 at 9:01 pm

#57 Smoking Man on 11.23.15 at 8:48 pm
DELETED

Come on Garth, you never seen, potty mouth princess, huge you tube hit.

Fine, I’ll delete that book mark. I know where the line is.

Back to

#66 RayofLight on 11.23.15 at 9:02 pm

What keeps a lot of bank execs up at night is banking becoming a dinosaur industry due to mobile phone payment systems. Imagine making payment, and not having to involve a bank at all? It is happening now, in Nigeria, Africa. These guys are light years ahead of the “Western World” in mobile payment innovations.

https://www.gsb.stanford.edu/insights/mobile-banking-takes-nigeria

#67 TRT on 11.23.15 at 9:03 pm

Rental properties and Basement suites are awesome!

Majority don’t declare the income and CRa doesn’t care as per municipal politicians clout.

Win.Win.

Where’s the problem? Plus she will qualify for maximum handouts this way.

#68 Arfmooocat on 11.23.15 at 9:05 pm

Smoking Man your boring and post nothing relevant … go troll Twitter and see if anybody will follow you.

#69 Bytor the Snow Dog on 11.23.15 at 9:06 pm

The problem is she’s making all of these bad decisions and in the end it’ll be the ex-husband who pays for it.

#70 Patrick on 11.23.15 at 9:08 pm

Women and house porn. I wonder how many young women (<40) are in the home ownership game alone. I know a few under-30 that are in it knee deep starting this year. They love it!

I had to laugh when the mother of one of these young women mentioned to me that any respectable person my age should own a house by my age. Like her 24 year old daughter. I bite my tongue about the potential for a correction.

In another instance, I had a guy hit on my girlfriend when we were out with friends by bragging about the 2 rental properties he bought this year in Mississauga. He seriously goes around mentioning this women to help his chances. I think it works most of the time, not too sure. Anyways, bankruptcy at 30 isn't too sexy. I know a few guys who own houses basically for this reason.

#71 Mean Gene on 11.23.15 at 9:10 pm

A gentle reminder why I stay single… she is really going to be in for a reality check when the child support cheques stop coming in a few years.

#72 Mark on 11.23.15 at 9:12 pm

“Too lose it all, when one has very little to begin with might be a calculated gamble. After all, a mortgage is not student debt, and it can be discharged by bankruptcy.”

True, mortgages are dischargeable. But lenders will always have their ways to know about a previous bankruptcy, even if such is expunged from a person’s public “credit record”. Such bankruptcy will follow a person around for the rest of their lives, and will increase their cost of credit. And even the cost of capital for the businesses they run. Going bankrupt is a reflection on personal credibility to some extent. Its not something to be taken lightly.

I’ve read quite a few prospectuses from junior O&G companies, particularly in the mid 2000s. I was always amazed at how many directors were required to disclose one or more bankruptcies from the early 1980s. And likely many more as this generation of O&G/RE speculators are wiped from the map.

Or am I missing some important information that alters this scenario?

If Canada sees the same sort of collapse as seen in the ARM/subprime heavy areas of the United States, just the 2 years of required payments into a bankruptcy estate may very well be enough to buy most of a new house. Florida and Central California’s RE markets are replete with examples of “$350k” condos going into the $40-$60k range.

Disposing of a dramatically overpriced property before the tide turns really bad, hunkering down, and saving, can create a *lot* of value at the bottom. Even better if one manages to find inversely correlated assets. Although in RE hyperdeflations, even cash does quite well at the task (ie: no need to be a gold bug).

#73 BC Guy on 11.23.15 at 9:13 pm

In other news … sounds like many of the OPEC nations are crying uncle. They are suffering from the low price of oil as much as Canada and the US.

Saudi Arabia said today that they would consider “stabilizing” oil prices soon. The Dec. 4 OPEC meeting should be interesting. Might be the beginning of production cuts and higher oil prices. There is light at the end of the tunnel for those dependent on the oil industry.

#74 Estrella on 11.23.15 at 9:17 pm

My favourite part is when she says she can`t save the money so she expects to use debt as a way to make money. Maybe, but only if your foundation is built on something other than stacked cards.

So in 25 years who`s going to paying for her to live,huh? Any guesses?

Good Gad, give me my house in Portugal with a sangria and I can continue to read these comics.

#75 Freedom First on 11.23.15 at 9:19 pm

#20 For those about to flop

Still lying about me I see, eh flop. Everyone knows I love women. It is marriage/commonlaw that is high risk for men. You are such a Dickhead.

#76 more coal in the stockings on 11.23.15 at 9:27 pm

the crap just simmering under a thin veneer in the GTA is pretty nauseating.
this women will pay/suffer in the end along with a lot of other folks….pretty sad state of affairs….
we’re going to eventually see the equivalent of a giant sinkhole…

#77 Linda on 11.23.15 at 9:29 pm

‘ruin her children’s financial future’ – not! Once the children are legal adults they can make their own financial futures & they’ll have an excellent road map on what NOT to do for financial security. Rony wants what she wants & wants it now & will naturally use every excuse including ‘I’m doing it for my children’ to justify getting the fancy stuff. She should of course grab her returns & run, rent a nice place for less than her mortgage & invest the equity as suggested by Garth in this blog.

Now, to be fair this blog has been preaching the housing apocalypse for quite a few years now & it is only now that it looks like some correction is finally occurring. However, that correction may turn into an all out rout due to demographics. Millions of Boomers are poised to retire, many of whom have most if not all of their cash tied up into ‘the house’. So what happens if all those retirees to be try to sell up at the same time? Can you say price plummet? The mortgage free can probably hang in there & be o.k. (as long as they keep working or have a pension to rely on) but the massively indebted are going to be crying all the way to the bank.

Fort Mac housing drops 20% – still way over valued. Think of the location & how insane the prices there were. 20% barely gets the price levels to drop from insane to mere greed & gouge. Keep in mind this was the place where people were renting a bed (not a room, apartment or house) for $1,500 per month (or more!) & that bed was always occupied. The $1,500 got you a 1/3 share in the bed & unless you changed the sheets before you got in, you shared ‘everything’ the former occupants of said bed had brought into it.

#78 Bram on 11.23.15 at 9:30 pm

I’m going to guess that Rony is fictional, and not a real person.
Garth, email headers, or it did not happen!

I can’t make this stuff up. Or have the time to. — Garth

#79 For those about to flop... on 11.23.15 at 9:31 pm

#75 Freedom First on 11.23.15 at 9:19 pm
#20 For those about to flop

Still lying about me I see, eh flop. Everyone knows I love women. It is marriage/commonlaw that is high risk for men. You are such a Dickhead.

/////////////////////////////////////
Thanks for the shoutout pussbutt,as Charlie Sheen will attest having unprotected sex with many partners is high risk behaviour.
Living and being married to some one you love not so much.

#80 Linda on 11.23.15 at 9:36 pm

#66 Ray – Nigera IS light years ahead. Keep in mind that Nigera has forgotten more ways to scam people out of money than most people know exists. I’m sure that lovely non-bank phone transfer helps!

#81 Smoking Man on 11.23.15 at 9:38 pm

Freedom First. For you.

Why are women so unhappy? A modest theory…

https://www.youtube.com/watch?v=W4WsRnxMZI8

#82 economictsunami on 11.23.15 at 9:46 pm

Conspicuous consumption means little to many people, without also rubbing their friends face in it. Then it becomes a competitive motivation for the ‘Jones’.

Sooner or later (perhaps never) it becomes old and tired; as people become more self aware.

For those that fail to wake up, a continued lifetime of shallowness and an increasingly empty existence.

Blame it all on Freud’s cousin …

Edward Bernays

https://en.wikipedia.org/wiki/Edward_Bernays

https://www.google.ca/search?q=you+tube+video+on+Edward+Bernays&oq=you+tube+video+on+Edward+Bernays&aqs=chrome..69i57.21884j0j7&sourceid=chrome&es_sm=0&ie=UTF-8

#83 Darryl on 11.23.15 at 9:58 pm

#66 RayofLight on 11.23.15 at 9:02 pm

What keeps a lot of bank execs up at night is banking becoming a dinosaur industry due to mobile phone payment systems. Imagine making payment, and not having to involve a bank at all? It is happening now, in Nigeria, Africa. These guys are light years ahead of the “Western World” in mobile payment innovations.

https://www.gsb.stanford.edu/insights/mobile-banking-takes-nigeria
————————————————————–

LOL
I think I just got an email from one of them .

Apparently a rich uncle just died and I’m the only family member they can find . Funny though , I didn’t know him . All I have to do is send them a thousand dollars for legal costs and its all mine!!!

What could go wrong eh?

#84 Daisy Mae on 11.23.15 at 9:59 pm

“So Garth must suck….well, occasionally I do.”

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

Well, you’re the reason I proceed cautiously when all about me, don’t. Thanks!

Your first paragraph was hilarious!

#85 Lorne on 11.23.15 at 10:04 pm

40 Lea
Is 5 years the longest term fixed mortgage in Canada? If so, what happens if house values have decreased when you have to renew your mortgage?

Let’s say you buy a house for $100,000 with $20,000 down. At five years the value decreases to $70,000. What happens to the mortgage?
……..
I am sure you are aware that you mortgage amount will be the amount left in the original mortgage….it does not matter how much you think, or anyone thinks, your house is “worth”

#86 Alberta wing-nuts on 11.23.15 at 10:10 pm

Okay, okay,,, if governments are building cities (as in billion dollar annual deficits) then that is good for house values… If neighbours are bettering their homes then that is good for house values… If people are swarming in to your city then that is good for house values… Inflation is coming but as a good thing and at a manageable rate and that too is good for house values…

#87 lala on 11.23.15 at 10:16 pm

Kudos to Rony ex, buddy you are a very, very, very lucky. Rony, keep it up girl, you deserve everything :(

#88 The Plan on 11.23.15 at 10:18 pm

“Any advice is greatly appreciated.”
Okay here goes, hook another reel him in, reproduce, divorce , rinse and repeat.
It’s magical really.

#89 Freedom First on 11.23.15 at 10:20 pm

#81 Smoking Man

Thanks. I enjoyed that.

I get constant reminders on just how good my life is. I live my life out of control. I am blessed.

#90 BG on 11.23.15 at 10:21 pm

I don’t understand the part where she says they used lack money as a couple and now alone she got enough money from the divorce to buy a bigger house.

Also note: ” I have chosen to invest in my primary residence and will look for other ways to make money”

I would say Rony, you have chosen to spend on your primary residence for your own comfort and I don’t see how these upgrades will make you any money.

That said, I have nothing against spending for comfort, provided you are in a position to safely do so.

#91 MF on 11.23.15 at 10:22 pm

I wonder what Rony looks like? 41 with a princess like attitude that never wore off after having kids like it is supposed to. Must still be slim and garnering some male attention (that is decreasing in quality daily). She is probably already looking for the next guy to pay off this house and everything (serious).

I think this post is a pretty accurate portrayal of the the GTA, where most people are totally over leveraged and completely financially illiterate. I work with the public and not one day goes by when I don’t hear or overhear a client gloating about their new home or rental purchase. I’ve spoken to some of these people (politely congratulating them of course) and I am certain they must plop all of their savings and recently “equity” gains into the next house (s).

I can understand how we millennials can be totally out to lunch and naive since we never grew up with anything other than rising prices, but at 41 Rony should know better. I bet this age group is the most house horny of them all, having realized big gains from 2003 until now and absolutely salivating for more.

People are aware of “rates”, but no one expects them to EVER go up so the threat is easily ignored. Heck no one really understands what “rates” are anyways and the CREA just loves it.

MF

#92 45north on 11.23.15 at 10:25 pm

how bad could it be when everybody’s doing it?

we don’t know

I mean the US is riding out a 30% decline in real estate which started in 2006. It was able to cushion the decline by lowering interest rates from 5% to 0% and by putting in place extensive mortgage modification programs. In addition half of all mortgages in the US are fixed 30 year terms. Further the US controls the world’s reserve currency.

so what happened in the US: I met a gal and her husband yesterday who just arrived in Saskatoon from the United States. They have come to Saskatchewan to work in construction and were attracted here by news of our continuing housing boom.

I asked her casually if things were really as bad in the States as we see in the news. “Worse” she said in a thick Southern drawl “you really have no idea”.

http://www.greaterfool.ca/2011/03/31/grow-a-set/#comments

#93 Observer on 11.23.15 at 10:25 pm

Yellen Defends Fed’s Low-Rate Policy in Response to Ralph Nader

http://www.wsj.com/articles/yellen-defends-feds-low-rate-policy-in-response-to-ralph-nader-1448313349

Hats off to Nader….she had to react….

#94 Smoking Man on 11.23.15 at 10:27 pm

#71 Mean Gene on 11.23.15 at 9:10 pm
A gentle reminder why I stay single… she is really going to be in for a reality check when the child support cheques stop coming in a few years.
……

This whole man vs woman thing is a diabolical plot. Strong family units make it hard for the state to take advantage of people. Split the family, weaken it’s economic base.. government can grow.

When I see Wynees man hating adds I see the state wanting more..

My wife has a choice, she can work if she wants, or stay home. She’s happy..

The only reason I can do what I do, make a shit load of loot is because of strong base at home.

Don’t get caught up in the man vs woman bullshit, it’s the state designed to separate all of us with the fruits of our labour..

Cultural Marxism… is what it’s called..

#95 [email protected] on 11.23.15 at 10:27 pm

#189 The real Kip on 11.23.15 at 7:48 am
Just heard on the news that Canadian Immigration is cherry picking the 800,000 Syrians in Europe. Justin Trudeau has a good shot at looking like a genius if he grabs 25,000 of the best and brightest of the migrants.

Out of the 800,000 people I’ll bet there are 25,000 very smart people who will benefit Canada. They are saying already that they expect many to be mobile within a month of arrival.”

Oh great, this will be like choosing teams in a road hockey game…..the fat or slow ones get picked last and get to play goalie….

#96 Leo Trollstoy on 11.23.15 at 10:28 pm

Rony represents the people whose homes I stole for less than replacement cost during the U.S. real estate crash. And then they rented cramped units in my multiplexes. From cradle to grave.

Too dumb to know that they’re dumb.

And too dumb to change direction.

#97 Washed Up Lawyer on 11.23.15 at 10:30 pm

Of course I read the news items today about the decline of real estate here in Fort McMurray. It is causing a certain amount of angst in the Mackinaw and Mukluk crowd.

I feel there is a far more pressing issue here in Alberta that is being ignored. When the Legislature is in session, I glance at Hansard every day. I like to see what we pay these goofballs to argue about.

A while back, there was debate about “Dog Theft In Newell County”.

Exactly WHAT IS MS. NOTLEY DOING ABOUT THAT???

Lawlessness.

#98 Nemesis on 11.23.15 at 10:36 pm

#CaptainBillyBobNOTAM… #Suddenly,It’s”ZeroHour!”… #Flight714″APilotlessPlaneRunningWild… #InAStormySky!”… #&SterlingHayden… #ChoseABadDay… #ToQuitSmoking…

https://youtu.be/AWI3JZvvbI4

#99 Millmech on 11.23.15 at 10:38 pm

#88
It’s the financial plan for a lot of women like her,but if she doesn’t remarry once the child support stops she goes for spousal.So glad my ex has remarried twice,would never remarry/cohabitate ever again.Freedom First has a lot of good points.

#100 Bruce on 11.23.15 at 10:39 pm

“Or my biggest fear is I don’t live past 10 years and would have played it safe for nothing!”

Never noticed the correlation between massive debt accumulation and atheism (no God=no accountability=this is my only life=lets borrow like crazy cause there is no such thing as stewardship.”

There it is though.

#101 Squish on 11.23.15 at 10:47 pm

Un-bleeping-believable.

I feel fear in my belly when I read this, just like I do when speaking to many people around me. It’s not about what you can afford, it’s about what you “deserve”… god forbid you live in a house with one single, solitary bathroom for you and your children to share. You made it to 40, you DESERVE hardwood floors, and granite / stainless steel as far as the eye can see.

We are really in delusional territory. It’s not just women; I know plenty of guys in their 30s and 40s who own multiple, highly mortgaged properties and are counting on this to really strike it big. But it’s especially mind-boggling to me when the people buying into this have children. What kind of world do you want for them? You believe prices will keep charging ahead year over year, so, million dollar condos and bottomless debt? That’s what you’re hoping for, for the next generation? I mean, they’re the ones who come after, who would have to buy your overpriced properties for you to cash out in the future.

Terrifying and insane.

#102 MF on 11.23.15 at 10:49 pm

#70 Patrick on 11.23.15 at 9:08 pm

Ha that story is so telling about the state of things in the GTA. Love your posts. It’s all a smoke and mirrors since we know most people are about 164% in debt (and rising fast).

For we millennials, having a 5% downpayment on a million dollar home and being in debt for the next quarter decade has become some weird display of achievement.

I’m willing to bet lots of guys our age think they are some mix of Donald Trump and Hugh Hefner with 3 or 4 over leveraged condos to their name and hundreds of thousands in debt… all paid for with a 50k/year unstable McJob salary. But hey as long as you can afford your leased Audi and keep the charade up. The girls they are chatting to are 99% probability financial morons as well. There will be tears and pain when it (inevitably) comes crashing down like always.

Like you said, bankruptcy at 30 isn’t too sexy.

A city of smoke and mirrors.

MF

#103 [email protected] on 11.23.15 at 10:53 pm

As you might imagine, I emailed this woman. “You’re an idiot,” ……

Garth, how come of the rest of us never get a “treat” response like this from you, or do only the real idiots merit this wordplay….btw, do you ever think that sometimes these are shill e-mails from RE pimps trying to yank yer chain?

#104 cramar on 11.23.15 at 10:53 pm

Rony, why didn’t you sell the townhouse, rent a suitable house for the family, and invest the difference? And stay outta debt?

I predict that in 5 years, instead of being a property magnate, you will be bankrupt and in poverty.

So sorry you didn’t find this pathetic blog a few years earlier. It might have saved your life and family.

#105 cramar on 11.23.15 at 10:55 pm

37 Julie on 11.23.15 at 8:05 pm
I’m a widow in my 50s with 3 kids. After my husband’s recent death, I sold our house and bought one for half the price and invested the difference. Being the sole financial support for my family, I wanted more money to invest and provide a cushion, not less! I couldn’t sleep at night if I had tons of debt – apparently I’m in the minority!

————

And also very smart!

#106 Patrick on 11.23.15 at 11:05 pm

#72 Mark on 11.23.15 at 9:12 pm
True, mortgages are dischargeable. But lenders will always have their ways to know about a previous bankruptcy, even if such is expunged from a person’s public “credit record”. Such bankruptcy will follow a person around for the rest of their lives, and will increase their cost of credit. And even the cost of capital for the businesses they run. Going bankrupt is a reflection on personal credibility to some extent. Its not something to be taken lightly.
__________________________________

I have a friend who got a $800k mortgage at 2.6%. Put 10% down on the house. He had declared bankruptcy at 27 and is now 34. Mortgage is with scotia. Obviously anecdotal, but I wonder how many of these are out there.

#107 omg the original on 11.23.15 at 11:25 pm

They embody recency bias – the belief that what’s just happened will happen forever.
—————

The recently bias on the west coast is more like an “as long as anyone can remember” bias.

Out here we have not had a meaningful correction since the 1980s unless you classify the momentary burp of 2009 as a correction. One hell of a bloated secular bull market.

Even in Rony’s frothy town of Toronto houses have not dropped since the early 1990s (yes, I know except the momentary burp of ’09).

For most people under 60 the treacherous catch phrase “real estate always goes up” just validates all they have ever known.

Why wouldn’t they just lever-up and invest in rental properties – since real estate in their experience “always goes up” it seems like a “no brainer” investment.

Yep, once the correction hits it’ll look like a real no brainer.

#108 Investorz on 11.23.15 at 11:26 pm

I sold my CIBC shares today. +10% or so in a year. Why take a chance on canadian banking tied to a consumer so much in debt?

Bought shares of ZUB with it. US banks. Little dividend but I feel safer, much safer. And what’s a 4.5% dividend when housing problems could take it back down 10-20% next year, when the cracks really show?

I’m going to sleep well now.

#109 Smoking Man on 11.23.15 at 11:31 pm

Damn, 3rd day sobar.

Tiny Relapse perhaps , found one of my stashed Jd Mickys in the garage looking for the snow shovel ..

Sound of a crack top open.

I drained it in the bushes….Im a fking man….

That was hard, I torcherd myself, as I was pouring it, I smelt it…

Kind of like Dracula coming across a freach plane crash, and doing nothing.

#110 Rr on 11.23.15 at 11:41 pm

Although generation X has to worry about their retirement, they say the millenials retirement plan will be a 9mm bullet, as there is no hope. With the increasing popularity of reverse mortgages, and lack of well paying jobs, the future for millenials looks bleak.

#111 TurnerNation on 11.23.15 at 11:46 pm

#47 Retired….today was the day to jump into Nat Gas. Maybe oil too.

‘God I love counterparties”

#112 K on 11.23.15 at 11:56 pm

Simple finance needs to be taught in school. I’m going to teach my son on my own when he’s old enough. Maybe the government wants to keep people financially ignorant. Idk.
Also thinking you deserve anything is the definition of entitlement. As soon as someone says something like “I deserve to be happy” I know they’ve had a pretty easy life.

#113 omg the original on 11.24.15 at 12:00 am

TWO THINGS ALL YOU HOUSE VULTURES SHOULD CONSIDER

Now most of us read this blog because we think housing in Canada is grossly, ridiculously overpriced – and it is.

And there are many that hope and pray for the US style correction of 40%, 50% or even 60% over the course of 12 to 18 months.

That scenario for Canada is EXTREMELY unlikely. To have a GFC type US correction we would need a massive economic upheaval like the US experienced in 2007-09.

Say something like;
– failure of major Canadian banks – no chance
– civil or world war – seriously?
– massive and abrupt interest rate increases – very, very unlikely
– US scale mortgage fraud – nope – our fraud is very Canadian – polite and cautious
– or a government fiscal crisis – nope sorry

Or pick any other extremely unlikely economic ARMAGEDDON scenario you can come up with.

The point is such events are just VERY, VERY unlikely.

AND LET’S SAY FOR ARGUMENTS SAKE WE DID HAVE MASSIVE AND SUDDEN CORRECTION IN CANADIAN REAL ESTATE.

Canada would not be a happy place.

Tens of millions of homeowners would have just seen the value of their houses decrease by hundreds of thousands of dollars. It would be the wealth effect in reverse with lots of homeowners pulling back on all kinds of expenditures.

The residential construction industry, renovation industry, and retail and service industry would all take a huge financial hit.

Most people would not be worried about buying a house at half price – they’d be worried about whether they had a fricken job.

No you don’t want to see a sudden and steep US style correction in Canada. The damage to the economy would be profound and long lasting.

Luckily such a correction is an extreme longshot.

The correction when it comes will much more likely take place over the span of a decade and be a combination of nominal price declines and declines in real terms as inflation eats away at house prices. This is the more sensible scenario to hope and pray for.

#114 omg the original on 11.24.15 at 12:02 am

Investorz on 11.23.15 at 11:26 pm
I sold my CIBC shares today. +10% or so in a year. Why take a chance on canadian banking tied to a consumer so much in debt?
————–

Against all odds the Canadian banking system always seems to win.

From my experience the Canadian banking oligopoly does not lose money they just increased fees.

#115 Riddick on 11.24.15 at 12:08 am

Smoking Man on 11.23.15 at 10:27pm

100% agree. But it is far too late. The entitlement of the feminine imperative has become so entrenched that we collectively as a society don’t even notice the casual blatant sexism of not allowing single men refugees into the country.

Freedom First, keep up the good work. Many of us have taken the Red Pill. We’re quiet, but there are more and more of us every day.

#116 Smoking Man on 11.24.15 at 12:09 am

Canada is so fkd.

Watching the news, Canada has been blemished been, bad reputation, black eye…were good now. climate change.

Anyone or anything that is worried about what others think is doomed.

Isreal no angle, revealed but they’re doing OK..and always will.

Why, just like me, they give no shit what others think..

Yes I lied in my earlier post.. no way I could let JD be lawn fertilizer..

Dracula lives….

#117 TurnerNation on 11.24.15 at 12:15 am

This cherry picking of refugees sounds creepy eugenics like. Like last generation’s camp lines
..to the left you live, in a work camp (Kanada – where it’s -20c and you pay carbon taxes to stay warm.)
Male? Take line to the right. Stay here in this war zone. A way to get rid right-aged men? Art of war they still got it :(

#118 Retired WI Boomer on 11.24.15 at 12:16 am

#111 Turner Nation

Well my CVX shares went up $1 and I peddled them today. Got good dividends there, but question their one-going ability to meet the dividend.

Not to worry still held my XOM which has more choices in their trick bag.

Always another ‘counterparty’ somewhere isn’t there?

#119 Smoking Man on 11.24.15 at 12:17 am

DELETED

#120 Shirley Valentine on 11.24.15 at 12:20 am

#116 Smoking Man on 11.24.15 at 12:09 am
————————–
Listen to me, Butterfly, there’s only so much wine
You can drink in one life
But it will never be enough
To save you from the bottom of your glass

#121 OXI in GREECE on 11.24.15 at 12:26 am

Climate change deniers just put two and two together, add and subtract. B.C. has a carbon tax but see nothing productive come from it. Would like to hear B.C. Premier Christy Clark on how carbon tax benefitted climate change!!!
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

The climate has changed greatly within the ranks of BC Govt Workers…….

thanks to the phony fake global warming gas tax…..Govt Workers in BC are now going to enjoy a raise in wages while the private sector continues to lay people off.

Canada. Stoooopidest govt in the G-20

#122 Bank of Mom on 11.24.15 at 12:29 am

Rony, the kids do need a dad. Look into the statistics of what risks being a single mom brings to the children’s lives. Teenage years are hard enough on kids. A stable family, mom and dad making it work, the stability financially, makes it easier to pay more attention to kids when they need it the most – till they are ready for the world and that takes about 20 years. Kids as usual have no say in family breakdown.
Now you are in terrible debt to boot. Sleep much?
Do your kids have much of a hope of having help getting thru school without running up great mounds of student debt and stress. My opinion is you have not been a good example to your kids. Shall the government later support you if your plans fail and you lose out? Did you look around and think about the risks to the Toronto housing market? Will we have to pay more taxes to subsidise you when you are old? The bank gets the house, the taxpayer gets the debt…. And yes many men I know do get the boot out the door by the women (approx 70% of the time). The kids pay the price, now, and again as the government debt can is kicked down the road.
Rony look into the ACE scores of your kids then be honest, put them first and those “wants” of yours on a back burner until the children fly the nest. If you don’t they may wise up, look back someday and understand the decisions you made and the damage it did to them. Kids do not have a choice in being brought into the world so it is a parent’s ethical highest responsibility to be in a position to be responsible to them, that includes financially.
You could be risking them having a home to come home to. Look across the border at the history there.

#123 OXI in GREECE on 11.24.15 at 12:31 am

#95 [email protected] on 11.23.15 at 10:27 pm
#189 The real Kip on 11.23.15 at 7:48 am
Just heard on the news that Canadian Immigration is cherry picking the 800,000 Syrians in Europe. Justin Trudeau has a good shot at looking like a genius if he grabs 25,000 of the best and brightest of the migrants.

Out of the 800,000 people I’ll bet there are 25,000 very smart people who will benefit Canada. They are saying already that they expect many to be mobile within a month of arrival.”
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Hey…..your absolutely right !! Because only low IQ dummies know how to build an electronic remote detonated IED using house hold chemicals. Gawd weez sooo not dumberer in Kanada Yuck Yuck…..

#124 Bottoms_Up on 11.24.15 at 12:44 am

#52 Habs76-79 on 11.23.15 at 8:35 pm
———————————
Yep, look at this. Ottawa U bans yoga for not being true to it’s roots and they mention being on a crusade to prevent every form of discrimination, except they conveniently leave out misandry:

http://ottawacitizen.com/news/local-news/u-of-o-student-federation-opens-door-to-reprise-of-yoga

#125 LowRent of Arabia on 11.24.15 at 12:47 am

What’s happening back there in Canada?

Yoga banned at Ottawa U? Gotta be kidding me.

Those Politically Correct bullies are messing Canada up.

#126 Kilt on 11.24.15 at 12:53 am

Rony, there is nothing wrong with investing in real estate to make a living, or a fortune, even Garth does this. But… you are making far too many assumptions. I am about to purchase a rental property. Before making the purchase, I analyze what I can rent the place for based on nearby rentals. I look at the mortgage cost at current rates (2%) and at future/normal rates (5%). Then I also factor in – what would happen if it went untenanted for three to six months. What happens if I lost my job. If rates rise and the property value drops by 20-30%, will I have a hard time re-financing in 5 years.
I’ve got friends who have made a killing in the last ten years off of real estate. Average people who now have 8 figures in assets, from simply buying, fixing, renting and selling. But even those people are becoming very conservative in these hot markets and are looking elsewhere to park their money. Feel free to become a greater fool though.
Kilt.

#127 Bottoms_Up on 11.24.15 at 12:55 am

#85 Lorne on 11.23.15 at 10:04 pm
—————————
The question was, if you have to renew a morrgage that is more than the value of the house.

I think in this case the bank asks for the difference before renewal. Thus, these people may have to get a second mortgage in order to renew.

#128 Bottoms_Up on 11.24.15 at 12:59 am

#66 RayofLight on 11.23.15 at 9:02 pm
—————————-
Well, using my Canadian banking app i can check balances, pay bills, make transfers, send money to email addresses etc., so I’m not sure how much more we need in terms of functionality? I do all my banking now on the bus during my commute!

#129 Mark on 11.24.15 at 1:03 am

“Tens of millions of homeowners would have just seen the value of their houses decrease by hundreds of thousands of dollars. It would be the wealth effect in reverse with lots of homeowners pulling back on all kinds of expenditures.”

What do you think is happening right now? Why is it that the Canadian dollar can shed 30% of its value in the past year yet not a whiff of inflation?

Its all about consumer demand decelerating dramatically on account of falling (or stagnating at best in certain upper-end locales) RE markets and flat-lining consumer credit. Profoundly deflationary, and we’re just in the first innings since RE declines still aren’t on the map for the ‘average’ Canadian homeowner/borrower.

#130 Mark on 11.24.15 at 1:11 am

“Against all odds the Canadian banking system always seems to win.”

True. But the banks are now 40% of XIU (ie: the TSX index). Can they grow much larger? Will the Liberal government be able to tolerate such a disproportionate chunk of Canada’s publicly available investment universe being dominated by a few big banks?

“mathematically” the banks should do well with CMHC picking up the RE defaults. But at some level, investors should assume that there is some element of political risk inherent in the Canadian banking system. Especially since CMHC is most likely severely undercapitalized relative to its subprime mortgage insurance issuance.

#131 LowRent of Arabia on 11.24.15 at 1:13 am

# 85 LORNE

Is 5 years the longest term fixed mortgage in Canada? If so, what happens if house values have decreased when you have to renew your mortgage?

Let’s say you buy a house for $100,000 with $20,000 down. At five years the value decreases to $70,000. What happens to the mortgage?
———————————————————

I did the math for you. After 5 years on a 2% 25 yr mortgage you would still owe $67 016 giving you just under $ 3000 equity. You would have paid $4065 in interest and principal so plus the $20K down you invested $24 065 to have $2984 in equity. A loss of $ 21 081 and thats not including any fees, insurance, maintenance at all on purchase or sale.

Your welcome.

#132 Ulsterman on 11.24.15 at 1:20 am

But, but, but, haven’t we bears been saying for years and years that people like Rony are stupid for leveraging to the max to buy the biggest house they can? In theory what they’ve been doing is very risky but it’s paid off handsomely.

“They see no risk in residential real estate, no matter the leverage or the over-consumption. They’ve partaken of the Kool-Aid dished out by realtors, the bankers, the media, their friends, co-workers and delusional relatives. They embody recency bias – the belief that what’s just happened will happen forever”

Look at Vancouver – it’s basically been a very successful one-way bet for 15 years. Who’s the dummy? Sure the person who’s just bought in 2015 MAY be taking a big risk, but then again weren’t we all saying the same thing back in the dark days on 2009?

#133 Great Canadian Bubble Co. on 11.24.15 at 1:30 am

The problem we have today is that the vast majority of Canadians only ‘know’ what the MSM and the nightly news tells them. And they are all singing from the same hymn sheet.

#134 Bob S. on 11.24.15 at 1:33 am

Rony should be checking how much of that house she will get to keep under Bankruptcy Law for her province and plan from that…

#135 Cici on 11.24.15 at 1:39 am

I can’t believe that any woman in her right mind would use that many exclamation marks. Uggh, get it together lady.

#136 Tony on 11.24.15 at 1:43 am

Re: #65 Smoking Man

Maybe thee should speaketh in a different dialect.

http://www.shmoop.com/shakespeare-translator/

#137 Tony on 11.24.15 at 1:53 am

Re: #113 omg the original on 11.24.15 at 12:00 am

If the first time buyer or millennials stopped buying overpriced real estate in Canada the way millennials don’t buy overpriced real estate in America today the whole pyramid would collapse since the first time buyer is the base of the pyramid.

#138 Half Full on 11.24.15 at 1:57 am

“Hundreds of thousands of house-lusty martyrs will blow up,”
Not in good taste at the moment, Garth.

#139 Exurban on 11.24.15 at 2:19 am

#40 Lea

Is 5 years the longest term fixed mortgage in Canada?

No, you can get longer mortgages. According to this moneychanger operation, 7% of Canadians have a mortgage with a fixed term between 6 and 10 years. I have bought two houses and paid off mortgages, the first from 1974 to 1994, the current one from 1996 with just a couple years to go. Both times I enquired about longer term mortgages, but the interest rates were significantly higher, and I believe so were the credit rating and down payment requirements. I got lucky renewing for five years in 1979 and avoiding the worst of the spike in 1980-83. Canadian banks theoretically offer 25-year mortgages, but I have never known anyone who actually had one. Right now RBC purports to offer one at 8.75%.

Others more knowledgeable than I could tell you more about the long term deals, but I can confidently answer your second question. When you sign a mortgage, you are on the hook to pay the amount stated within the time limits stated. Fluctuations of the real estate market have no legal effect on that.

#140 imadoofus on 11.24.15 at 2:39 am

#100 Bruce on 11.23.15 at 10:39 pm
… no God=no accountability=this is my only life=lets borrow like crazy cause there is no such thing as stewardship.”…

How about “this life doesn’t really count… God knows I am right… I’ll just ingest a wafer/bow in the right direction and He will make it all OK…” That consistent with responsible behavior?
Leave religion out of it please. It has enough to answer for as it is.
Reason and a healthy dose of skepticism is what we desperately need on this benighted planet.

#141 kommykim on 11.24.15 at 2:42 am

RE:

#103 [email protected] on 11.23.15 at 10:53 pm
As you might imagine, I emailed this woman. “You’re an idiot,” ……
Garth, how come of the rest of us never get a “treat” response like this from you

The key is to say something just convincingly stupid enough to get his attention but not go so far as to get a DELETED or worse. You’ve got to know exactly which buttons to push and which not to. It’s an art.

#142 Freedom First on 11.24.15 at 2:49 am

#115 Riddick

Yes. Shaming, misandry & mocking men in sitcoms and ads has backfired. Free men are now making their own rules. It works. Just like sane sound financial Principles works. The system hates that too.

In my personal life I am quiet also. Insanity rules. Just like in the RE market. I don’t argue with insanity face to face. The sane are out numbered. It’s why Garth receives so much hate mail. Herd mentality rules.

I am here to help.

#143 Sally Ride on 11.24.15 at 3:30 am

DELETED (anti-immigrant)

#144 jane 24 on 11.24.15 at 3:58 am

When financially uneducated people like this have multiple houses and lust for more then you know that you have had the fabled conversation with the shoeshine boy and is time to get out.

My own canary in the 1980’s housing crash was when i hired a chap to put new carpets on my own stairs and he advised me to buy more houses. I put my own house up for sale within a week and moved to a small Ontario town. My TO house did not regain its selling price for 10 years.

Sometimes these idiots can have their uses.

#145 Babblemaster on 11.24.15 at 3:59 am

Rony is an idiot? Yeah, sure. Except, her idiocy has made her good returns on RE so far. Lot’s more upside before there is a day of reckoning.

#146 David on 11.24.15 at 4:30 am

The collective “we” totally never priced in risk. It is probably too late to undo the damage.

https://www.commonwealmagazine.org/mispricing-risk

#147 Vangrrl on 11.24.15 at 4:31 am

#101 Squish: Agreed!

I lost track of the number of arguments/debates I got into with friends and aquaintances when I lived in Vancouver over the topic of ‘real estate as the best investment’. Friends in their 60s with new mortgages, flatly refusing to read Greaterfool. They know deep down they’re idiots. The whole country has lost the plot, particularly BC (and Toronto from the the sounds of it).
Now that I live in Europe and am surrounded by expats (many with children) who almost exclusively rent, it’s so refreshing. One family in particular I have become friends with- parents are French and Polish- take their kids rock climbing and kayaking on weekends and often invite me along… these people are living right.
Will be interesting to see how the next few months unfold over on the other side of the pond there!

#148 Vangrrl on 11.24.15 at 4:37 am

Then there’s idiocy like this:
http://www.cbc.ca/news/canada/ottawa/university-ottawa-yoga-cultural-sensitivity-1.3330441

I’m pretty left wing but huh?!! Lol

#149 nubbers on 11.24.15 at 4:51 am

Wow, I have never seen this blog put he boot into anyone as much as poor Rony. Harsh.

My other half, who is a similar age, has been giving me the same BS about house prices for years. She recently worked out that if we stop renting and buy now, we will be much better off, in fact by about as much as my net income over the same period! If this is what someone with a degree in Accounting comes up with, then is it any wonder that the average Joe/Jo Blogs thinks that housing is such a sure bet?

As you rip into Rony, just remember, this is a real person who is heading into extreme misery and poverty.

#150 Vortex on 11.24.15 at 7:08 am

Ban Hawk

#151 Kenchie on 11.24.15 at 7:58 am

Gratitude is good for the soul.

http://www.bloombergview.com/articles/2015-11-23/take-a-moment-to-appreciate-the-recovery

#152 Victor V on 11.24.15 at 8:22 am

The average house in Fort McMurray has lost $117,000 or 20% of its in value in one year

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/energy/the-average-house-in-fort-mcmurray-has-lost-117000-or-20-of-its-in-value-in-one-year&pubdate=2015-11-24

#153 Apocalypse2015 on 11.24.15 at 8:46 am

Rony, worry about your teenagers right now. Let’s hope they’re not old enough to be conscripted.

World War I, Part Deux, appears on its way.

Turkey has shot down a Russian jet, and the Russians are angry.

We are likely only hours, maybe a couple of days, from Turkey (a NATO member) invoking Article V.

Then…..total chaos.

The world is screwed.

Ah, we had “World War I, Part Deux”. It was called WW2. — Garth

#154 Millmech on 11.24.15 at 9:22 am

Bank of Mom
Good luck with her finding a new Father for the kids,any smart guy runs from an entitled woman like this as fast as he can.Run you just run.

#155 charles on 11.24.15 at 9:26 am

Turkish F-16s Shoot Down Russian Su-24 Warplane Near Syria Border
Turkish warplanes strike Kurdistan targets, 5 militants killed north of Turkey’s borders with Iraq and Iran.
There are already 69 Canadian special forces troops working to train Kurdish forces and the Iraqi military. And soon there will be more.
What could go wrong?

#156 pbrasseur on 11.24.15 at 9:32 am

But the banks are now 40% of XIU (ie: the TSX index). Can they grow much larger? = # 130 Mark

That number has increased also with the collapse in energy. But in any case it reflects the fact that the space occupied by financials in the Canadian economy is disproportionate (it’s about 17% in the US) and makes no sense unless we are quickly becoming a new Switzerland or something, which obviously is not the case.

The best case scenario it seems is slow (or no) growth in financials while the rest of the economy somehow catches up. The other possibility is the other sectors don’t catch up anytime soon and financials would shrink to match the economy’s real potential. Either way this constitute a loss in real terms, the need for a correction is obvious and it’s not going to be pretty.

Yet interestingly the PE ratios in the Canadian sector are still close to those going on for US banks such as WFC, yet in the US credit is expanding and has a lot of room to expand… Canadian funds and institutions (such as the Caisse de Dépôt) are buying Canadian banks right now because they figure prices are good, personally I wouldn’t touch them it with a 10 foot pole, I’d still prefer Wells-Fargo by a mile!

#157 crowdedelevatorfartz on 11.24.15 at 9:41 am

I’m amazed at the amount of people personally attacking “Rony” .

Folks, we’re here to discuss her financial illiteracy and before you feel too smug take a look around you.

Judging from the comments today and over the last few years there is no shortage of “Rony’s”.
Friends, relatives and coworkers ie The Majority. Have all drank the Kool Aid. They ALL live with massive debt , no savings and no realistic plans for retirement.
The banks loan them ridiculous amount of credit at historically low interest levels.
And like most people so deep in debt they, themselves, cant comprehend how deep in the financial dung heap they are until its over their heads……but, of couse, its the banks fault. Not theirs. Gotta have that newer bigger house, vacation, new BMW, IPhone, $5 starbucks….
The mentality “I want it….and I want it now!” has never more prevalent.
This credit glutton fest wont last and when it does spin down ….. I wouldnt be crowing too loud that you warned them. You may get asked for a loan….

My biggest fear is that the govt will bail these “greaterfools” out at our expense through increased taxes for us because the “fools” will vote enmass for punitive changes ( for the savers of the country…not them) to the taxation system in the years to come.
Dont think the craven politicians skulking around after the latest election havent considered you as the new “rich”.
You have money.

#158 Bank of Mom on 11.24.15 at 10:02 am

#154
Yep, and the smart men should run. Too bad the marriage was so disposable. Kids need a good Dad around, the actual biological father is so crucial. When people decide to have kids, they need to commit to the marriage and get educated about the effects of divorce on kids and not let it be an option. ACE scores everyone. Key element in a child’s well being later in life.
Hindsight will be 20/20 if she ever wakes up.

#159 TurnerNation on 11.24.15 at 10:26 am

I’ve always believed those doomers saying elites are gunning for WW3. Since 2001 we’ve had 15 years of war…to “keep us safe”. How’s it going?

Also consistently I’ve said Iraq was just a test for what’s to come here: door to door raids, bag em and tag em, biometric control, road blocks. Well they’re putting on quite that show in Brussels for us. Guys running around pointing barrels with blue lights at random windows? Worthy of a Hollywood set. And it is. Made for us production.

#160 Apocalypse2015 on 11.24.15 at 10:40 am

Ah, we had “World War I, Part Deux”. It was called WW2. — Garth

—————————-

Yes, Garth, that is the regular way we often think of WWII.

But the way we got into WWI, with all those side deals, paper arrangements, strange and outdated alliances, entitled royal families, a slow but steady march into war over a few months – this sort of diplomatic fog has a lot more in common with what is going on in eastern Europe and the Middle East today than the rise of a dictator or communism/imperialism in the 1930s and the attacks on Poland or Pearl Harbor.

That’s why I find it especially worrying. No one seems to be in charge, even of their own national interests.

Except maybe Putin and ISIS, who may be about to show us just how little they care what the rest of us think.

Can any westerner even name who are the “good guys” and “bad guys” in the Middle East mess?

That’s what I mean.

It is confusing and arcane, just like pre-WWI politics. With more weapons and more wild cards.

Our media is not helping understanding in any way. Trump and terrorism are the best things to ever happen to CNN and FOX News. A war would be even better for them, until………..it’s too late.

We have violence in a vacuum of understanding right now, about to be filled by those who can best push their ‘big, simple’ ideas.

We are screwed.

Chaos is coming.

Stock your shelves, and keep some spare gas in the can, folks.

#161 IHCTD9 on 11.24.15 at 10:42 am

#140 imadoofus on 11.24.15 at 2:39 am
#100 Bruce on 11.23.15 at 10:39 pm
… no God=no accountability=this is my only life=lets borrow like crazy cause there is no such thing as stewardship.”…

How about “this life doesn’t really count… God knows I am right… I’ll just ingest a wafer/bow in the right direction and He will make it all OK…” That consistent with responsible behavior?
Leave religion out of it please. It has enough to answer for as it is.
Reason and a healthy dose of skepticism is what we desperately need on this benighted planet.
____________________________________________

Buddy did not say one rip about religion.

Perhaps a healthy dose of reading comprehension is what we desperately need most on this benighted planet…

#162 Prairieboy43 on 11.24.15 at 10:43 am

$5.00 Starbucks coffee > $2.50 Tim Hortons coffee > Free Mcdonalds coffee (this week). Where do you spend your $$?
PB43

#163 Drill Baby Drill on 11.24.15 at 10:54 am

I think cooler heads will prevail in Syria over the downed Ruskie jet. Putin is an SOB put he is not an insane SOB so he will negotiate with the more stable NATO countries and tell Turkey to stand down otherwise a major conflict will ensue and oil will sky rocket.

#164 Randy Randerson on 11.24.15 at 11:10 am

#56 fan of freedom first on 11.23.15 at 8:44 pm

Thanks for posting up Sleazy’s blog, I haven’t followed it for a few years. I need to catch up on his posts, otherwise I’ll be swallowing the blue pill.

#165 Julia on 11.24.15 at 11:23 am

We are the only ones of our friends who have not moved up from our original small house bought in 2003. We all bought our first homes within a few years of each other in Toronto. Some have moved up 3 times. Giant, shiny usually new infill houses. Housewarmings to show off the house, chef’s kitchen, cinema room etc.. and people one-upping each other at the next housewarming.
We hear those same comments all the time: Moving up is how you make money because real estate always goes up etc…
I just think of the giant mortgages but mostly of all the costs involved – double land transfer tax alone on a $1.5million house is over $25,000!
At this point I just smile and nod while shaking my head.

#166 Julia on 11.24.15 at 11:25 am

Adding that you should see our friend’s faces when we tell them we are considering selling and renting. Priceless silence.

#167 IHCTD9 on 11.24.15 at 11:33 am

#91 MF on 11.23.15 at 10:22 pm
I wonder what Rony looks like? 41 with a princess like attitude that never wore off after having kids like it is supposed to. Must still be slim and garnering some male attention (that is decreasing in quality daily). She is probably already looking for the next guy to pay off this house and everything (serious).

MF
____________________________________________

Even though I’m a married with kids rural conservative with old school values, I have to admit the challenges facing younger folks when it comes to marriage these days.

50/50 chance of failure, virtual guaranteed loss of custody in court, virtual guaranteed spousal/child support payments, long term financial destruction possible depending on your situation. Then the ex-wife becomes a RE investor with your money and kids.

If she’s 41, she’s going to have to settle for less than her ex, 41 year old women with kids don’t “marry up”, that’s just the way it goes. Men in her age group are in full control of their gear at that point, so what vestiges of sex-appeal she may still retain at 41 will no longer be the powerful ordinance it once was.

She will have a hell of a time getting anything resembling a “sugar daddy” to pay the mortgage at her stage in the game IMHO.

Hopefully she understands her demographic, and is not banking on any unrealistic expectations.

#168 The real Kip on 11.24.15 at 11:34 am

To the commenters about Canadian Immigration cherry picking refugees. Of course they are going to do it and think about it, Canada is at the front of the line and can pick and choose from 800,000 Syrians when no other country wants them.

This is a huge opportunity for Canada to grab some very talented people who will not only survive here but thrive here. Justin Trudeau can then say to the international media that Canada did its part and the rest of the world should step up and take the rest.

Think about it, if this happens, Trudeau is a genius! We should roll out the welcome mat for 25,000 new Canadians.

#169 Julia on 11.24.15 at 11:43 am

#106 Patrick
First bankruptcies, once discharged, disappear from credit bureaus after 7 years. Discharge is automatically granted after 6 months unless creditors oppose.
A second bankruptcy stays on for 14 years and I believe that there is no automatic discharge.

#170 fancy_pants on 11.24.15 at 11:50 am

This story would have got the same warnings 5 years ago. Those who ignored back then have made out like bandits. However,you can smell the wolf now. I am not being facetious. I think RE prices are getting downright ridiculous in many large Canadian cities and more importantly the debt people are taking on more so ridiculous.

Expanding the scope, predicting anything these days is getting more difficult. You have an economic and social house of cards that is barely being held together by world powers all the while unraveling at the seams. Nobody can be sure what will spill out when the seams begin to split but it won’t be pretty no matter what corner of the globe you call home.

Enjoy life while it is still presented in an orderly fashion.

#171 Julia on 11.24.15 at 11:52 am

#139 Exurban
My Bank offer fixed rate mortgages for 7 and 10 years.
Most do.

#58 Mark
The Interest rate act you refer to is in relation to pre-payment penalties. A term of more than 5 years only allows the lender to charge a fixed 3 months interest as pre-payment penalty, not the interest rate differential. Therefore lenders prefer terms 5 years or less to protect for rate fluctuations.

#172 LP on 11.24.15 at 12:01 pm

#158 Bank of Mom on 11.24.15 at 10:02 am
#154
Yep, and the smart men should run. Too bad the marriage was so disposable. Kids need a good Dad around, the actual biological father is so crucial. When people decide to have kids, they need to commit to the marriage and get educated about the effects of divorce on kids and not let it be an option. ACE scores everyone. Key element in a child’s well being later in life.
Hindsight will be 20/20 if she ever wakes up.
******************

Now just a damn minute! None of us know why she is divorced. Maybe the guy was an abuser, of her or the kids or both. Maybe he was a money deadbeat (I’ll give you that she is shaping up to be one too). Maybe he was a druggie or alcoholic. Maybe, like my former son-in-law, he disappeared for months at a time without even sending any money for the kids or household expenses.

There’s a myriad of reasons why Rony is divorced. Without knowing why, maybe we should just shut up about how having dad in the house is so much better.

#173 Julie K. on 11.24.15 at 12:04 pm

Her “real” name is Rony?

Not, Ronooooooooooooo?

#174 Panhead on 11.24.15 at 12:04 pm

Well at least Rony has her beginner husband behind her …

#175 IHCTD9 on 11.24.15 at 12:07 pm

#158 Bank of Mom on 11.24.15 at 10:02 am
#154
Yep, and the smart men should run. Too bad the marriage was so disposable. Kids need a good Dad around, the actual biological father is so crucial. When people decide to have kids, they need to commit to the marriage and get educated about the effects of divorce on kids and not let it be an option. ACE scores everyone. Key element in a child’s well being later in life.
Hindsight will be 20/20 if she ever wakes up.
____________________________________________

Down the road from me, many years ago; there was a single Mom with two teenage boys. Everyone in the neighbourhood couldn’t wait for the implosion to happen so they would get the hell out. It was WW3 over there every night. You could hear them a mile away.

My own kids are thick skulled, strong willed, and push the limits. I can’t imagine a single mom trying to raise a couple boys like my own. It’s families like mine and the one down the road where the value of a good Dad really shines. My wife has a limit where she can’t control the kids, where they start to argue with her as an equal. I have no such limit, in fact; rarely do I need to even raise my voice. Men and Women think differently, discipline differently, and present differently. At least in my family, there would be huge holes in the child rearing program without both a Mom and Dad in the house.

I’ve come to understand, and as much as the feminazis hate to admit it – Men and Women do have roles, we have different strengths, and neither can do as good a job on their own.

Those boys down the road – I still know them (although they don’t know me). Thus far, they have come to nothing. They are oversensitive, angry, and impulsive. The kind who would punch a Cop in the face after being pulled over for something. No respect for authority, incapable of forming relationships, selfish to the core.

#176 noel on 11.24.15 at 12:16 pm

Don’t even need a morning coffee with all this bitterness in the comment section. Pretty sad to question this woman’s parenting skills too, y’all know nothing about her personally.

Depending on the neighbourhood Rony bought in and the fact that a rate cut is more likely than a hike in the next twelve months, it could very well be a sound financial decision to buy.

Sounds like a lot of the single men here are jealous that they missed out on a decade of house price appreciation and want to drag others down as a defense mechanism to cover their own poor judgement.

Toronto is not Calgary and no amount of repetition will make it so. Real estate is incredibly localized – where her house is matters more than the price of oil. I wish her the best.

#177 Grantmi on 11.24.15 at 12:24 pm

Home lottery’s are now advertising on the radio…. the only way to get a home in Hongcouver is to buy a $100 home lottery ticket. “Win the DREAM!”

This is what it’s come down to here…… (Curtain closed)

#178 Pete on 11.24.15 at 12:36 pm

Rony is not necessarily an idiot, what she is is a gambler. If she does not realize she is a gambler, but thinks she is an investor, well then she is an idiot.

#179 Holy Crap Wheres The Tylenol on 11.24.15 at 12:43 pm

#153 Apocalypse2015 on 11.24.15 at 8:46 am

Rony, worry about your teenagers right now. Let’s hope they’re not old enough to be conscripted.

World War I, Part Deux, appears on its way.

Turkey has shot down a Russian jet, and the Russians are angry.

We are likely only hours, maybe a couple of days, from Turkey (a NATO member) invoking Article V.

Then…..total chaos.

The world is screwed.

Ah, we had “World War I, Part Deux”. It was called WW2. — Garth
_____________________________________________
Don’t worry!

“I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.”

― Albert Einstein

#180 Dan Hudson on 11.24.15 at 12:49 pm

I’m sorry but if people think saving is hard then they are just hopeless.

People don’t want to save money and I am sure many have not idea what savings are. They still think their credit card and home equity line of credit, personal line of credit is actual income.

Go watch your dancing shows and singing shows. Clueless people that should not be able to live their fantasy lifestyle on borrowed time and money.

#181 Holy Crap Wheres The Tylenol on 11.24.15 at 12:50 pm

Ha here is what Islamophobia costs. Now we finally have a price. I though he and his family where moving to Qatar? I guess he wants a parting gift?

http://www.independent.co.uk/news/people/ahmed-mohamed-demands-15m-compensation-for-homemade-clock-arrest-a6745706.html

#182 Vundo on 11.24.15 at 12:54 pm

#54 Island Renter: no. Rony is not innocent. I believe we should have compassion for those who are coerced into losing (or too-risky) strategies. That ain’t her. She is choosing to do what she does because she believes she is entitled to luxury and it will also make her rich at someone else’s expense, guaranteed. This is almost pure greed. She is driven by extreme greed, not by honest ignorance.

#183 Randy Randerson on 11.24.15 at 12:56 pm

#99 Millmech on 11.23.15 at 10:38 pm

Holy shit! Just learned that there is spousal support/alimony here in Canada! WTF! A divorce is devastating enough financially, now you have to pay your ex for an indefinite number of years until she gets back into the work force? And a man has to pay 40-50% of his net income so the other person can sit in her paid off home and watch Oprah eat McDonald’s, and turn into a whale?

#184 Smoking Man on 11.24.15 at 1:02 pm

Shooting airmen trying to parachute to safety is going to cost them.

The FSA just game Yippy Ki Ah MoFO Putin the green light to really accelerate his whoop ass-ing of the ISIS and the moderate rebels.

Given that Turkey is a NATO country and any attack on them is an attack on all of them. Can anyone see France; Germany, Canada go against Russia. Hardly.

No more warnings or heads up. No more, Hey tell the guys in the oil tankers to clear out before we bomb them.

That ship has sailed. Now we are in the unpredictable zone. Surprise!!!!!!

#185 Smoking Man on 11.24.15 at 1:05 pm

You all where beating me up few days ago about my crude hedge.

Well in The headlines today… Look what happened.
Just as I called it.

#186 Cristian on 11.24.15 at 1:37 pm

She is not just an idiot, she is a spoiled idiot.
OMG, everybody has their own bathroom!
In my home country we used to be 5 people sharing one bathroom. And we didn’t kill each other, not even argue with each other, just learned to share.
As for the “I deserve to be happy” part… everybody and my dog think they deserve one thing or another. But you really deserve something when you can afford it, when you worked for it and are able to take money out of the pocket and pay for it. That’s when you deserve it.
It is a poor human being that who can only find happiness in material things.
This kind of people deserve all that will be coming to them, even if they are not able to see it yet.

#187 bdy sktrn on 11.24.15 at 1:45 pm

#183 Smoking Man on 11.24.15 at 1:02 pm
Shooting airmen trying to parachute to safety is going to cost them.
——————
unless , of course it’s already war…

watch for oil to strengthen on tensions over there.

the finger tip of land the ru jets crossed over was just barely over 2km across. like 20 seconds to cross the ‘shortcut’. the turks were waiting and had to act fast. they are pissed these jets are bombing ethnic turk ‘civilian’ villages in nearby syria it seems. no prisoners baby.

putin won’t go crazy over it but oil heads toward 50.

#188 bdy sktrn on 11.24.15 at 1:47 pm

and the bump in oil prices will allow putin to pay for 20 replacment jets.

#189 Lea on 11.24.15 at 1:48 pm

#58 Mark

Thanks for explaining mortgage mechanics in Canada.

#85 Lorne

Exactly my thought. I was thinking about prime borrowers in my Los Angeles area ~2008. They had exotic loans and interest rates jumped to the point they could not afford payments and had to sell at steep losses or declare bankruptcy.

#131 LowRent of Arabia

Thanks for the math. The horror movie is the one that scales the numbers to Vancouver real estate.

#190 bdy sktrn on 11.24.15 at 2:15 pm

#177 Grantmi on 11.24.15 at 12:24 pm
Home lottery’s are now advertising on the radio…. the only way to get a home in Hongcouver is to buy a $100 home lottery ticket. “Win the DREAM!”
——————–
the prize houses are never actually in vancouver anymore, land is too pricey. a lottery win only gets you the suburbs.

#191 HD on 11.24.15 at 2:26 pm

#168 The real Kip on 11.24.15 at 11:34 am
To the commenters about Canadian Immigration cherry picking refugees. Of course they are going to do it and think about it, Canada is at the front of the line and can pick and choose from 800,000 Syrians when no other country wants them.

This is a huge opportunity for Canada to grab some very talented people who will not only survive here but thrive here. Justin Trudeau can then say to the international media that Canada did its part and the rest of the world should step up and take the rest.

Think about it, if this happens, Trudeau is a genius! We should roll out the welcome mat for 25,000 new Canadians.

————————-

Trudeau might turn out to be a genius on this perhaps. But what bothers me about this whole thing is that the official rhetoric of the party has been: “Islam is a religion of piece”, “nothing to fear from Syrian refugees”, etc.

Yet, they insist on excluding specific Syrian refugees; young single muslim men.

By doing that, they acknowledge that accepting young men would come with significant risks and they don’t want to take that chance.

I suspect they don’t really believe their own rhetoric and honestly discuss the real issues behind close doors.

As long as they keep Canadians safe I suppose.

Best,

HD

#192 Edmonton Fool on 11.24.15 at 2:28 pm

Edmonton realtor takes jab at NDP, includes boast about real estate listings, then deletes post after backlash.

http://imgur.com/R01vlYV

#193 Sally Ride on 11.24.15 at 2:35 pm

DELETED (knuckle-dragger)

#194 Leo Trollstoy on 11.24.15 at 2:40 pm

As you rip into Rony, just remember, this is a real person who is heading into extreme misery and poverty.

I feel worse for her kids. They’re the ones who will have to deal with the consequences of their mother’s stupidity.

#195 IHCTD9 on 11.24.15 at 2:59 pm

#193 Sally Ride on 11.24.15 at 2:35 pm

DELETED (knuckle-dragger)

____________________________________________

Intriguing…

#196 Smoking Man on 11.24.15 at 3:00 pm

#187 bdy sktrn on 11.24.15 at 1:45 pm
#183 Smoking Man on 11.24.15 at 1:02 pm
Shooting airmen trying to parachute to safety is going to cost them.
——————
unless , of course it’s already war…

watch for oil to strengthen on tensions over there.

the finger tip of land the ru jets crossed over was just barely over 2km across. like 20 seconds to cross the ‘shortcut’. the turks were waiting and had to act fast. they are pissed these jets are bombing ethnic turk ‘civilian’ villages in nearby syria it seems. no prisoners baby.

putin won’t go crazy over it but oil heads toward 50.
………

He’s going to go crazy over it.. see below. Turkey trying to shut down YouTube..there generals caught on tape planning a false flag attack on it’s self to invade Syria.
Now this..

This is getting hot people..bet accordingly..

I’m working on an essay on this tonight

Moscow plans to suspend military cooperation with Ankara after the downing of a Russian bomber by Turkish air forces, Russian General Staff representatives said on Tuesday. Further measures to beef up Russian air base security in Syria will also be taken.

Follow LIVE UPDATES on Russian warplane shot down at Syria-Turkey border

Condemning the attack of Turkish fighter jet on the Russian bomber in the Syrian airspace “is a severe violation of the international law” Sergey Rudskoy, a top official at the Russian General Staff, stressed the Su-24 was downed over the Syrian territory. The crash site was four kilometers away from the Turkish border, he said.

Rudskoy said the Russian warplane did not violate Turkish airspace. Additionally, according to the Hmeymim airfield radar, it was the Turkish fighter jet that actually entered the Syrian airspace as it went after the Russian bomber.

Turkish fighter jet has made no attempts to contact Russian pilots before attacking the bomber, Rudskoy added.

#197 pwn3d on 11.24.15 at 3:00 pm

#181 Holy Crap Wheres The Tylenol on 11.24.15 at 12:50 pm
Ha here is what Islamophobia costs. Now we finally have a price. I though he and his family where moving to Qatar? I guess he wants a parting gift?

http://www.independent.co.uk/news/people/ahmed-mohamed-demands-15m-compensation-for-homemade-clock-arrest-a6745706.html
——————-

That’s what political correctness costs. He has played the system and the left and media ate it up. It is crazy how stupid and uninformed most of the feeds on social media and the supposed real media I see are.

#198 NotAGreaterFool on 11.24.15 at 3:11 pm

http://www.cbc.ca/player/play/2679422955

real estate get rich fast schemes- Shenanigans

#199 Doug in London on 11.24.15 at 3:13 pm

Rony’s story is a prime example of the saying: if you give some people enough rope, they will hang themselves.

#200 GOtrain SHeep on 11.24.15 at 3:17 pm

Why are all the people in toronto a bunch of mindless sheep?

#201 The real Kip on 11.24.15 at 3:21 pm

“#191 HD on 11.24.15 at 2:26 pm”

I hope screening single men out is not the only criteria for selection. Many of the Syrians would have been smart enough to get the money out in advance of this crisis. They have leaked out that most are expected to be mobile within a month of arrival here which indicates they are not as destitute as some would have us believe.

I too questioned Justin Trudeau’s logic on this one so early after he was elected and with world affairs in a tizzy however, the more you look at it, the more Trudeau appears to be far ahead of the curve in looking after Canadian interests.

I did not care much for Pierre Trudeau when he was PM except on international affairs where I thought he was outstanding. It seems that Justin Trudeau may be a chip off the old block as he is a few weeks away from making many national leaders look very stupid.

It’s sad to see Syria unravel but it appears we are about to see 25,000 of their best arrive in Canada.

#202 salonist on 11.24.15 at 3:25 pm

This Could Be The Mortgage Industry’s iPhone Moment

http://techcrunch.com/2015/11/24/this-could-be-the-mortgage-industrys-iphone-moment/

#203 Apocalypse2015 on 11.24.15 at 3:34 pm

Things are moving fast, folks. Change is now happening hourly.

U.S. Issues WORLDWIDE TRAVEL ALERT.

This is unprecedented in modern times.

In effect until February 24, 2016.

War will likely be upon us by then.

http://www.cbc.ca/news/world/us-travel-warning-1.3331828

#204 Vundo on 11.24.15 at 3:36 pm

#192 Edmonton Fool: please post any link(s) to the backlash if you can find any.

#205 bdy sktrn on 11.24.15 at 3:37 pm

#197 pwn3d on 11.24.15 at 3:00 pm
#181 Holy Crap Wheres The Tylenol on 11.24.15 at 12:50 pm
Ha here is what Islamophobia costs. Now we finally have a price. I though he and his family where moving to Qatar? I guess he wants a parting gift?

http://www.independent.co.uk/news/people/ahmed-mohamed-demands-15m-compensation-for-homemade-clock-arrest-a6745706.html
——————-

That’s what political correctness costs. He has played the system and the left and media ate it up. It is crazy how stupid and uninformed most of the feeds on social media and the supposed real media I see are..

—————————————————
and he’s a fraud too and got to the white house on it.

his clock that he ‘invented’ is 100% unmodified/unaltered except for disassembly of an off the shelf older clock radio.
photos and google are a bitch.

#206 jess on 11.24.15 at 3:43 pm

daesh meh …blue/white collared threateners

Charbonneau commission finds corruption widespread in Quebec’s construction sector
Inquiry report calls for whistleblower protection, stiffer penalties for lawbreakers

http://www.cbc.ca/news/canada/montreal/charbonneau-corruption-inquiry-findings-released-1.3331577

======
The settlement resolves allegations that between 2007 and 2012 Novartis paid kickbacks to three specialty pharmacies – BioScrip, Accredo, and US Bioservices. The pharmacies were selected by Novartis to be part of a closed distribution network through which most Exjade prescriptions in the United States were filled. Novartis created the distribution network, which it called EPASS, and therefore had significant control over how many patient referrals each pharmacy received. The pharmacies shipped most Exjade prescriptions to patients by mail and were supposed to call patients to set up the shipments and obtain consent for refills. The pharmacies billed themselves as specialty pharmacies that could arrange for these shipments and run educational programs for patients. …

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-390-million-national-kickback-settlement-novartis

In their court filings, the government plaintiffs alleged that Novartis paid kickbacks to the pharmacies to corrupt the pharmacies’ interactions with patients by inducing the pharmacies to exaggerate the dangers of not taking Exjade, emphasize Exjade’s benefits, and downplay the severity of Exjade’s side effects. The scheme began after Exjade failed to meet Novartis’ internal sales goals and Novartis discovered that refill rates for Exjade were lower than anticipated.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-390-million-national-kickback-settlement-novartis

#207 Holy Crap Wheres The Tylenol on 11.24.15 at 3:45 pm

#184 Smoking Man on 11.24.15 at 1:02 pm
Shooting airmen trying to parachute to safety is going to cost them.
The FSA just game Yippy Ki Ah MoFO Putin the green light to really accelerate his whoop ass-ing of the ISIS and the moderate rebels.
Given that Turkey is a NATO country and any attack on them is an attack on all of them. Can anyone see France; Germany, Canada go against Russia. Hardly.
No more warnings or heads up. No more, Hey tell the guys in the oil tankers to clear out before we bomb them.
That ship has sailed. Now we are in the unpredictable zone. Surprise!!!!!!
__________________________________________
I know one pilot who had to punch in a hot area after taking a sparky. He recalled the quietness of the parachute drop only to be rattled by the pop, pop, pop of AK47s. He was terrified all the way down into the bamboo forest. He was lucky to be extracted with only a broken ankle.
I told you before a pilots greatest fear during the Viet Nam War was not being blown out the sky but surviving the crash. The locals would come out and hunt us down and if they didn’t kill you outright then they would beat the living hell out of you. Putin is going to look for somebody to blame for this one. It is really dirty what these Islamic Rebels did, gutless bastards. Its like shooting ducks in a pond.

http://www.history.com/topics/vietnam-war/vietnam-war-history/videos/shot-down-during-vietnam-a-fighter-pilots-story
http://www.cbsnews.com/news/shot-down-over-vietnam-first-pows-share-memories-50-years-later/

#208 jess on 11.24.15 at 3:46 pm

http://www.cbc.ca/news/canada/saskatchewan/cash-strapped-u-of-r-students-abandoned-by-nigerian-scholarship-program-1.3326199
==================

Files Open New Window on $182-Million Halliburton Bribery Scandal in Nigeria
Tesler being under investigation since 2003, HSBC continued to offer advice, services and cash withdrawals to Tesler and his family, whose accounts with the bank totaled tens of millions of dollars at one point in 2006/2007. HSBC advised the family even though its individual files for Tesler and those close to him include references to “criminal cases” and “the Tesler affair.”
http://www.icij.org/project/swiss-leaks/files-open-new-window-182-million-halliburton-bribery-scandal-nigeria

Tesler’s wife, Judy, is named in the files as a beneficial owner and a controlling client of two accounts, one of which was opened in 1999 and at one point in 2006 or 2007 held $35.3 million. The files do not specify her role in relation to a third account. As he did with his wife, Tesler also transferred bribe money into accounts in the names of his daughters, according to U.S. and French prosecutors. One daughter, Laura, then a twenty something psychology student, according to the leaked files, became a millionaire — at least on paper — through her beneficial ownership of an account under the name of a Panamanian company that held almost $4 million.

http://www.icij.org/project/swiss-leaks/files-open-new-window-182-million-halliburton-bribery-scandal-nigeria

EXCLUSIVE: Many more people killed in Nigeria despite unprecedented N1.48trillion arms spending
November 16, 2015Joshua Olufemi and Richard Akinwumi

The Emerging Nigerian Underclass, By Bámidélé Adémólá-Olátéjú
Premium Times November 24, 2015 The Emerging Nigerian Underclass, By Bámidélé Adémólá-Olátéjú2015-11-24T09:38:10+00:00 Bámidélé Upfront, Columns, Democracy and Governance 7
http://blogs.premiumtimesng.com/?p=169790

#209 Millmech on 11.24.15 at 3:52 pm

#183
That is why smart men only get married once,if you go through a divorce that’s all it takes and I believe in Ontario that if your ex remarries you still have to keep paying the alimony.People hammer Freedom First for his views but it’s the best way to go about it,both genders should go to family court as part of family planning in high school to see the devastation both financial and emotional that marital breakup inflicts on families.People I believe would be more hesitant and probably do more soul searching before saying “I do””.

#210 Mark on 11.24.15 at 3:55 pm

“#58 Mark
The Interest rate act you refer to is in relation to pre-payment penalties. A term of more than 5 years only allows the lender to charge a fixed 3 months interest as pre-payment penalty, not the interest rate differential. Therefore lenders prefer terms 5 years or less to protect for rate fluctuations.”

Right… My explanation wasn’t actually very good, and might have been construed as slightly misleading if taken literally. Yours is much better. Kind of surprised Trollstoy didn’t jump all over me. Maybe he’s turning into a softie :O.

Therefore the interest rate applicable to the loan is adjusted accordingly by the market to reflect the value of the option implicitly embedded in favour of the issuer (borrower).

It might be interesting to, with good sources of data, track the trend of the pricing of that option. To see if there are any trends or the options pricing having any predictive value. Any mortgage geeks interested in doing some math/charting?

#211 Holy Crap Wheres The Tylenol on 11.24.15 at 3:57 pm

#196 Smoking Man on 11.24.15 at 3:00 pm

#187 bdy sktrn on 11.24.15 at 1:45 pm
#183 Smoking Man on 11.24.15 at 1:02 pm
Shooting airmen trying to parachute to safety is going to cost them.
——————
unless , of course it’s already war…

watch for oil to strengthen on tensions over there.

the finger tip of land the ru jets crossed over was just barely over 2km across. like 20 seconds to cross the ‘shortcut’. the turks were waiting and had to act fast. they are pissed these jets are bombing ethnic turk ‘civilian’ villages in nearby syria it seems. no prisoners baby.

putin won’t go crazy over it but oil heads toward 50.
………

He’s going to go crazy over it.. see below. Turkey trying to shut down YouTube..there generals caught on tape planning a false flag attack on it’s self to invade Syria.
Now this..

This is getting hot people..bet accordingly..

I’m working on an essay on this tonight

Moscow plans to suspend military cooperation with Ankara after the downing of a Russian bomber by Turkish air forces, Russian General Staff representatives said on Tuesday. Further measures to beef up Russian air base security in Syria will also be taken.

Follow LIVE UPDATES on Russian warplane shot down at Syria-Turkey border

Condemning the attack of Turkish fighter jet on the Russian bomber in the Syrian airspace “is a severe violation of the international law” Sergey Rudskoy, a top official at the Russian General Staff, stressed the Su-24 was downed over the Syrian territory. The crash site was four kilometers away from the Turkish border, he said.

Rudskoy said the Russian warplane did not violate Turkish airspace. Additionally, according to the Hmeymim airfield radar, it was the Turkish fighter jet that actually entered the Syrian airspace as it went after the Russian bomber.

Turkish fighter jet has made no attempts to contact Russian pilots before attacking the bomber, Rudskoy added.
__________________________________________
At 710 knots or around 1315 km/h these jets can travel 1 km in just under 3 seconds. After being hit it also could have traveled into or out of anybody’s territory! At these speeds thing happen fast.

#212 45north on 11.24.15 at 3:59 pm

Mark: Many mortgage contracts issued by the Canadian banks these days even have clauses which trigger an immediate maturity of the loan if the bank is unilaterally of the opinion that the collateral has dropped in value.

you made that up

#213 TurnerNation on 11.24.15 at 4:01 pm

Nigeria’s central bank cuts interest rates. Due to plunging oil prices. Weak economy.

We are not Nig…hmmmm ?!

#214 Tom on 11.24.15 at 4:03 pm

A great example of why you shouldn’t have all of your eggs in the real estate basket…

http://www.edmontonjournal.com/laid+calgarians+losing+hope+prospects+dwindle+money+runs+short/11540386/story.html

#215 Grey Dog on 11.24.15 at 4:09 pm

Rony does your new home come with unicorns and pots of gold in the back yard? You are going to need it. You need to honestly look at yourself and not blame others for the situation you will find yourself in.

There were 6 people
in the farmhouse that I grew up in, ONE bathroom! No problem.

Acquaintance of mine got into rentals…first month when she went to pick up her cheque, renter laughed at her and basically said he wasn’t going to pay. Next time she knocked on his door, she had her mixed baseball team with her, he got the message.

Neighbour rented out their town home while they were going to be out of the country for a few years, they had their wrists slapped as they did not want to rent out to those on welfare. When they returned back to Canada…townhome was totally destroyed. Should have sold townhome and left money in the bank invested.

#216 Holy Crap Wheres The Tylenol on 11.24.15 at 4:13 pm

#201 The real Kip on 11.24.15 at 3:21 pm

“#191 HD on 11.24.15 at 2:26 pm”

I hope screening single men out is not the only criteria for selection. Many of the Syrians would have been smart enough to get the money out in advance of this crisis. They have leaked out that most are expected to be mobile within a month of arrival here which indicates they are not as destitute as some would have us believe.

I too questioned Justin Trudeau’s logic on this one so early after he was elected and with world affairs in a tizzy however, the more you look at it, the more Trudeau appears to be far ahead of the curve in looking after Canadian interests.

I did not care much for Pierre Trudeau when he was PM except on international affairs where I thought he was outstanding. It seems that Justin Trudeau may be a chip off the old block as he is a few weeks away from making many national leaders look very stupid.

It’s sad to see Syria unravel but it appears we are about to see 25,000 of their best arrive in Canada.
___________________________________________
The best unemployed, unhealthy, non-English speaking, non french speaking, uneducated, radically different way life people. Yep, that pretty much sums it up. Yep we got the best, holy shit just think if junior spends another 1.2 to 1.6 billion of our money we could get another 25,000. So who is going to employ these people during their adaptation into Canada. Ya right you are? We have just created another Malvern district here that will turn into a hot bed breading ground for you know what! Christ I would rather have the country infiltrated with pizza rats.

#217 Holy Crap Wheres The Tylenol on 11.24.15 at 4:17 pm

#191 HD on 11.24.15 at 2:26 pm

#168 The real Kip on 11.24.15 at 11:34 am
To the commenters about Canadian Immigration cherry picking refugees. Of course they are going to do it and think about it, Canada is at the front of the line and can pick and choose from 800,000 Syrians when no other country wants them.

This is a huge opportunity for Canada to grab some very talented people who will not only survive here but thrive here. Justin Trudeau can then say to the international media that Canada did its part and the rest of the world should step up and take the rest.

Think about it, if this happens, Trudeau is a genius! We should roll out the welcome mat for 25,000 new Canadians.

————————-

Trudeau might turn out to be a genius on this perhaps. But what bothers me about this whole thing is that the official rhetoric of the party has been: “Islam is a religion of piece”, “nothing to fear from Syrian refugees”, etc.

Yet, they insist on excluding specific Syrian refugees; young single muslim men.

By doing that, they acknowledge that accepting young men would come with significant risks and they don’t want to take that chance.

I suspect they don’t really believe their own rhetoric and honestly discuss the real issues behind close doors.

As long as they keep Canadians safe I suppose.

Best,

HD
____________________________________________
Wow I’m glad its only Woman, children and family’s.

http://video.foxnews.com/v/4603201244001/palestinian-woman-attacks-israeli-guards-with-knife/?#sp=show-clips

#218 Roasted Nutz on 11.24.15 at 4:20 pm

#211 Holy Crap Wheres The Tylenol on 11.24.15 at 3:57 pm

At these speeds thing happen fast.
——————————
A Yoggi Berra gem!

#219 Smoking Man on 11.24.15 at 4:21 pm

The epacenter of stupidity..

Canada..

We are on the verge of ww3..the cause, various interests wanting control of energy exports..selling gas and oil…

In this country, our own govt is taking us out of the game…

The stupid schooled here crack me up….

#220 Mark on 11.24.15 at 4:21 pm

“Mark: Many mortgage contracts issued by the Canadian banks these days even have clauses which trigger an immediate maturity of the loan if the bank is unilaterally of the opinion that the collateral has dropped in value.

you made that up

I’m glad you challenged me on that. Unfortunately there’s not a lot of the nitty gritty of mortgage legal documents on the public web, so its not the easiest claim of mine to prove. However, here’s an example of a mortgage loan contract issued by the Royal Bank of Canada that contains a default clause solely at the discretion of the bank.

http://www.rbcroyalbank.com/RBC:3TG9jqwYUA0BDAAEO0IAAABa/legalforms/download/4479_loan_agreement.pdf

“if the Bank in its sole and absolute discretion reasonably believes that the Borrower or the Nisga’a Nation has undergone or will undergo an event which has or will materially affect the ability of the Borrower under this Agreement or the Nisga’a Nation under the supporting Nisga’a Nation Guarantee to perform their respective obligations to the Bank. ”

Clauses with similar wording are contained in most other residential mortgage loan contracts which allow the banks, in their unilateral views, to trigger the default clauses when they feel like it. Any mortgage professional who has read the documents will tell you that such clauses are not uncommon, and could be triggered simply on account of job loss of the borrower, negative equity, or even the bank’s belief that the same will occur.

Here’s another doozy:

“If it is necessary for the Bank to prove the Interest Rate in effect at any time, the Borrower agrees that the Bank’s written certificate, setting out the Interest Rate at that time, is sufficient and conclusive proof for that purpose. “

#221 Holy Crap Wheres The Tylenol on 11.24.15 at 4:23 pm

#191 HD on 11.24.15 at 2:26 pm

#168 The real Kip on 11.24.15 at 11:34 am
To the commenters about Canadian Immigration cherry picking refugees
__________________________________________
Ya still feeling sooooooooooo safe. The woman or man who attacked the other woman is still on the loose. Described as a human biped completed covered from head to toe in a sheet, with only a slit in which the red glowing eyes would peer out. Oh yes and with a 12 inch long knife.
https://www.youtube.com/watch?v=X-tq4EvCOOo

#222 Roasted Nutz on 11.24.15 at 4:23 pm

#203 Apocalypse2015 on 11.24.15 at 3:34 pm

Things are moving fast, folks. Change is now happening hourly.

U.S. Issues WORLDWIDE TRAVEL ALERT.

This is unprecedented in modern times.

In effect until February 24, 2016.

War will likely be upon us by then.

http://www.cbc.ca/news/world/us-travel-warning-1.3331828
—————————————-
You are such an optimistic dude… only 5 weeks til you have to change your name!

#223 Julia on 11.24.15 at 4:26 pm

#212 45north
I believe he did.

#210 Mark
I will take you answer as admitting that you were wrong on your statement at #58:
“Per the Canada Interest Act, the longest period of fixed interest on a mortgage in Canada is effectively 5 years.”

5 years is not the longest as per the act, the banks just prefer 5 years or less but they do offer longer terms albeit at a premium to compensate for the less flexible pre-payment penalties.

Maybe Trollstoy or others will be impressed that you admit being wrong.

Mark is correct. The Canada Interest Act prohibits a fixed-rate mortgage of more than 60 months. Therefore all loans of a longer duration (including 10-year mortgages) become open after 5 years and can be paid off with only a modest penalty. The borrower is not locked in. — Garth

#224 jess on 11.24.15 at 4:29 pm

cults – nigeria
http://sunnewsonline.com/new/edo-inside-story-of-killings-inter-cult-clashes-in-ekpoma-2/

..”Aluya spoke further: “Now, it is different. What we have in Ekpoma is now street cultism. All sort of people are join­ing cult groups. Today, mechanics are even joining cult groups. Sometimes, when you take your car to a local me­chanic in Ekpoma, you see something very strange. When a mechanic goes under your car, you see a gun attached to his trousers. He openly wears his band or cap which displays the cult group he belongs to. That is how far they have taken cultism in Ekpoma. Okada men threaten you and openly tell you that they belong to a cult group and nothing will happen to them.

“Secondary school students have started joining cults now. Some carry guns to school and this is very common in public schools. So, by the time these boys get to the univer­sity, cultism becomes a child’s play to them. They see cult­ism as a lucrative venture and many young people are lured to join. Some of them have become armed robbers. They lay siege along the highway and even attack private homes at night. Go to Iruekpen, Ujemen, Eguare, Ihumudumu and all small towns and villages in Ekpoma. It is the same story. Cultism has gone to the streets.”

#225 Advanced Human Chris Nemelka on 11.24.15 at 4:31 pm

Nice post.

This lady Rony sounds like a problem. No wonder she is divorced from her husband.

“But Rony reminds us of the time bomb we now live with.”

Are you referring to her as a woman or the house or both? The house declining isnt the issue. The decline of the woman is.

#226 Julia on 11.24.15 at 4:37 pm

#220 Mark
The example you provided is a loan agreement for a corporation, not a mortgage to an individual.
Here are standard mortgage terms from RBC, also easily found on the web.
http://www.rbcroyalbank.com/RBC:Pv8tMawYUA0BZADuTHsAAAAT/legalforms/download/3997%2808-2015%29.pdf

#227 RichHill - RichVale girl on 11.24.15 at 4:47 pm

#58 Mark on 11.23.15 at 8:52 pm

Let’s say you buy a house for $100,000 with $20,000 down. At five years the value decreases to $70,000. What happens to the mortgage?
….

If you don’t have a job, then they demand repayment in full immediately, you default and go into personal bankruptcy if you can’t pay up, and the bank is made whole by the CMHC.

CMHC? The house was purchased with 20% down.

#228 HD on 11.24.15 at 4:53 pm

#201 The real Kip on 11.24.15 at 3:21 pm

“It’s sad to see Syria unravel but it appears we are about to see 25,000 of their best arrive in Canada.”

I agree. If JT is in a position to select “the best”, they could represent a great asset for Canada if they are truly trying to escape an insane ideology and embrace liberal values.

#217 Holy Crap Wheres The Tylenol on 11.24.15 at 4:17 pm

Of course there are still risks associated with allowing women and children from this faith but the risk is significantly reduced if you eliminate young men from the process.

Surely we can agree on that?

Best,

HD

#229 Grantmi on 11.24.15 at 4:53 pm

#190 bdy sktrn on 11.24.15 at 2:15 pm

#177 Grantmi on 11.24.15 at 12:24 pm
Home lottery’s are now advertising on the radio…. the only way to get a home in Hongcouver is to buy a $100 home lottery ticket. “Win the DREAM!”
——————–
the prize houses are never actually in vancouver anymore, land is too pricey. a lottery win only gets you the suburbs.

True!

You couldn’t pay me (or give me a home) to live in Vancouver proper. I’d take the CASH if I won!!

#230 Julia on 11.24.15 at 4:58 pm

Mark is correct. The Canada Interest Act prohibits a fixed-rate mortgage of more than 60 months. Therefore all loans of a longer duration (including 10-year mortgages) become open after 5 years and can be paid off with only a modest penalty. The borrower is not locked in. — Garth

We are sort of saying the same thing aren’t we? A borrower can get a 10 year mortgage and fix their rate for 10 years but the Bank can only lock them in for 5 at the higher penalty and then they are allowed to break the mortgage at lower cost post 5 year term.

What I read his statement as being was that there is no mortgage terms at fixed rates possible for more than 5 years available to borrowers, my argument was that there are. It just becomes open for prepayment at lesser cost after 5 years but the rate remains for 10 should the borrower choose to maintain.

That’s right. — Garth

#231 Mark on 11.24.15 at 5:01 pm

“Here are standard mortgage terms from RBC, also easily found on the web.”

Thanks for the reply. I’d suggest that the terms requiring maintenance of a property’s value, have the same theoretical impact. Go into negative equity = find that the bank wants you to do lots of extra ‘maintenance’ on your house until you weasel out of it. With the borrower also being obliged to pay for the cost of any/all inspections requested by the lender.

Obviously it is not generally in the interests of the lenders to push their customers into default. But by reading the contracts, whether your example or mine, it is quite obvious that they have a very wide and vast toolkit to trigger defaults in highly overextended borrowers if they feel it is in their business interest.

I think Garth and others have written in the past that one of the greatest fears of home borrowers should be that the economy actually improves enough that investors lose interest in housing and housing loans, and simply start to chase other asset classes with higher returns.

#232 45north on 11.24.15 at 5:08 pm

Holy Crap: At 710 knots or around 1315 km/h these jets can travel 1 km in just under 3 seconds. After being hit it also could have traveled into or out of anybody’s territory! At these speeds thing happen fast.

yep at these speeds borders are an abstract notion

Russia makes threatening moves with high speed war planes yet treats them like a sport:

Swedish Jets Intercept Russian Aircraft Over Baltic Sea

http://www.ibtimes.com/swedish-jets-intercept-russian-aircraft-over-baltic-sea-1857094

#233 The real Kip on 11.24.15 at 5:25 pm

“#221 Holy Crap Wheres The Tylenol on 11.24.15 at 4:23 pm”

Have you been hitting the Tylenol a little too heavy of late? Head back down into your basement, the mold spores and pizza rats miss you!

#234 Freedom First on 11.24.15 at 5:28 pm

#165&166 Julia

Julia, right on, kudo’s, you have much common sense. And I think that “common sense” is the biggest “oxymoron” of all.

Also, as an addendum, the majority of people on this blog who use the term “oxymoron”, do not understand its meaning, obviously. Just sayin

#235 common sense on 11.24.15 at 5:50 pm

WWIII…

Sad if it happens sooner than later but how many idiots and countries will think it’s the ultimate reset to current world financial problems?

#236 saskatoon on 11.24.15 at 5:52 pm

#228 HD

“I agree. If JT is in a position to select “the best”, they could represent a great asset for Canada if they are truly trying to escape an insane ideology and embrace liberal values.”

1. they have already escaped. none of these refugees are actually coming from syria…but from neighbouring countries

2. consequently, they are no longer “refugees”.

3. 2015 JT is (ironically) sexist.

#237 espressobob on 11.24.15 at 6:39 pm

Caution may prove prudent.

https://ca.news.yahoo.com/10-000-syrian-refugees-resettled-years-end-15-210401549.html

#238 Armando on 11.24.15 at 6:50 pm

Wow! This lady sounds like something straight out of the US real estate bubble circa 2007 – truly an accident waiting to happen. If anyone wasn’t yet convinced that Canada is at the very peak of a truly massive housing bubble, this should do it!

#239 Victoria Real Estate Update on 11.25.15 at 3:56 pm

. . . . . . . . . . . .House Prices. . . . . . . . . . . . . .
. . Percent Above/Below May 2010 Price Level. . .
. . . . . .x = Vancouver, * = Victoria (City). . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+15%. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+10% . . . . . . . . x. . . . . . . . . . . . . . . x. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+ 5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
….0%. . . x*. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .* . . . . . . . . . . . . . . . . . . . .
– 5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-10%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .*. . . .
—————————————————————————–
. . . . . . .May. . . .May . . . . . . . . . . .December
. . . . . . 2010. . . 2011. . . . . . . . . . . . .2013. .