Entitled

1ENITLED

Markets are wheezy. The Fed is coiled. Oil’s suicidal. But the word revolves around Brianna.

“I am in a dire predicament,” she just wrote me, “and I need your valued advice. ASAP.”

By way of background, Bri is in her late 30s, childless, with a dodgy boyfriend. (Happens.) No kids. Renting a downtown T.O. condo here sister owns, but sis has decided to dump. She‘s been reading this blog, held off buying real estate and been dismayed at rising prices. Makes $100,000, has saved $110,000 but has $65,000 in student loans. “My family is unwilling to help financially, as they are disappointed in my boyfriend.”

No wonder. “He earns 40k and lives with his parents near Brampton and has a son.  It is possible we might move into together within the next year to 18 months. He doesn’t have any savings, but his parents will match anything he saves for a house.”

So what’s the emergency?

“I am debating on getting an investment condo to live in until we decide to live together and then rent out the condo (keep as investment property) and then we buy as house together and hopefully start our own family.  I am hoping for prices to drop as you have written, so hopefully the timing is right to get into the market.

“Based on what I have seen on general condo prices in my area of the downtown core, condo prices are flat or dropped slightly in the past couple years.  It really does depend on the building, but most of the buildings I follow there has not been much appreciation.

“I know you are a major proponent on renting right now, but I will be stuck in a year lease and difficult for me to get out if we decide on living together.  There are some affordable condos in the downtown core (small in size) that are in the mid-300s.  My thought is to purchase one of these and get a house later.  Also, i thought maybe better to have my own property aside from the matrimonial house I would share with my boyfriend. Please, do you have any advice to offer on how I should handle my finances and living situation? I have been looking for guidance and not sure where to start.”

I feature Brianna today as a bit of a case study. She feels sidelined because she thinks condo prices have popped (thanks to the media), but her actual observation is that values are flat or have declined. The woman obviously believes with a net worth of about fifty grand that (a) she should put 100% of it into one asset – a condo with a bad price history, (b) she can actually buy one and then turn it into an ‘investment” even though it will lose money and (c) she can then team up with her iffy BF who has ziltch and makes peanuts to purchase a ‘matrimonial home” while keeping her condo as a side investment.

See what I mean? She’s nuts. Worse, we have a banking system rife with omnivorous lenders only too happy to make these fuzzy dreams come true. They can still buy with 5% down, so long as it’s south of half a million. They can still get a mortgage for little more than the inflation rate. And they can shoulder between them hundreds of thousands in floating debt destined to reset higher with each future renewal. And did I mention that anyone making a hundred grand who’s almost 40 with a net worth this size is a financial cripple already? Even before jumping off the condo cliff?

This epitomises our culture of entitlement and our embrace of debt. It’s a world in which people without a property feel disenfranchised, even when they lack the money to afford one. Gone is the notion of having money in anything other than real estate. Diversification means a house plus a condo.

No wonder mortgage debt has increased in 2015 by more than twice the rate of inflation and five times the pace of economic growth. As you may have heard, we just hit another milestone – record debt as borrowing continues to quickly outpace incomes. In the latest quarter, debt-to-income nudged 164%, beating out the previous record set one year ago.

DEBT RECORD

And Brianna ain’t even a Millennial. As a group, that bunch is headed for financial perdition. A new US survey has just found 52% have less than a thousand dollars saved. Over 70% have under five thousand. Even among those earning between $100,000 and $150,000 half have put aside less than $5,000. And among the geezer Millennials (ages 25 to 34), 47% have just a grand or less.

But people in the cohort – who now slightly outnumber the Boomers – continue to dominate the ranks of first-time homebuyers. In other words, they’re like Brianna. One asset, indivisible, before God.

Between now and Valentine’s Day, you’ll like see a wave of buying, as the ill-informed and hormonal masses rush to beat the new down payment requirements, further goosed by the expected interest rate hike to  the south of us on Wednesday afternoon. Poor lambs. The big shearing awaits.

Oops. I failed to answer Bri’s breathless question. Feel free.

328 comments ↓

#1 Broke Dick on 12.14.15 at 5:35 pm

Between now and Valentine’s Day, you’ll like see a wave of buying, as the ill-informed and hormonal masses rush to beat the new down payment requirements

Full steam ahead. Choo, choo!

#2 leslie on 12.14.15 at 5:35 pm

It wouldn’t matter which way you choose!

#3 Randy on 12.14.15 at 5:37 pm

Eventually the strong will eat the weak

#4 P.Giddy on 12.14.15 at 5:41 pm

if ya ain’t first…

https://www.youtube.com/watch?v=y4usE2RePqo

#5 Panhead on 12.14.15 at 5:43 pm

Does she have a dog?

#6 TurnerNation on 12.14.15 at 5:44 pm

A mention – sounds like a s.t. bottom in oil ;-)

Anyway the blue/red pill crowd should be all over this blog entry.

#7 Mouser on 12.14.15 at 5:44 pm

Late 30s, wants to start a family.

Oh honey I’m so sorry, but I think that ship has sailed. Please don’t base your entire life around the idea that you’ll be able to conceive at 40 or later. Its just going to tear you apart when 8/10 chance it can’t happen.

#8 Josh in Calgary on 12.14.15 at 5:44 pm

“stuck in a one year lease, that will be difficult to get out of, IF we decide on living together”.

So that sentence says it all right there. They haven’t had an honest conversation about their living arrangements yet. Certainly not one that’s come to a conclusion. Rent for a year. IF during that time you decide that living together is the way to go then waiting the remainder of the year is not nearly the big deal you seem to think it is. Especially if you plan on buying. Better yet, just rent a bigger place until BF shows he’s capable of putting some money away.

My general advice to all people is you should avoid buying until you’re certain that your living arrangements will be stable for about 5 years. And that’s assuming that housing will move up with inflation. If you may change jobs or need to upsize with in 5 years then renting is better on the flexibility and not having to pay realty fees alone.

#9 AndrewBee on 12.14.15 at 5:45 pm

First…

65 grand in Student loans- Ouch..

Rent till you pay those babies off.

#10 Randy Randerson on 12.14.15 at 5:45 pm

Brianna epitomized the notion that women will perform mental gymnastics to explain away their illogical, and sometimes stupid, behaviors. You go girl!

#11 EarlySpring on 12.14.15 at 5:46 pm

Those stats found in a U.S. survey are stats based on Canadians? Is that right?

#12 Nsqt on 12.14.15 at 5:46 pm

Unfortunally she is basing her decisions on emotion rather then common sense and reality.

#13 Leo Trollstoy on 12.14.15 at 5:46 pm

Brianna’s parents are smart not to give her any money.

She seems to be prone to making bad decisions.

#14 Mark on 12.14.15 at 5:47 pm

Big part of the ‘savings’ problem for Millennials is that they simply haven’t seen, in their adult life, returns on investment.

When they put their money “in the bank”, their return is practically zero. When they buy mutual funds or ETFs which have had decent long-term historic returns, they’ve only seen their investments mostly flat over the past 8-10 years.

The only investments that have done ‘well’ are those that are termed ‘conservative’ (not to be confused with the political party that was anything but when it came to spending) and are typically marketed towards the wrinklies. Even RE as an investment has failed to perform over the past couple years while the carrying costs add up every year. And the return on ‘investment’ in education has been dreadful, with very few jobs for educated people created in the past decade and even significant employer dispreference for educated people.

So what’s a Millennial to do? Have faith that the next decade won’t be the same as the last? That their efforts in saving and investing will be rewarded? Or live for the moment, and hope they get a big inheritance from the wrinklies eventually?

Its tough. I don’t blame Millennials for really being ‘lost’ on what to do.

#15 mark on 12.14.15 at 5:48 pm

BMO ZPR Preferred share laddered index ETF down another -1.8% on the day.

Issue price when launched was $15. Current price $9 bucks and change, what a slaughter!

The poor souls that bought several years ago.

http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=ZPR-T

#16 j on 12.14.15 at 5:49 pm

He’s looking to move from one mommy to another…good luck. You’ll have to hand over half the condo if the matrimonial home blows up as well as the home you have together. Be happy with renting. We have since early 2012. Lots of investments…living in a great hood. Can move and discover what we want in a permanent home. We might buy in 5 years or maybe not. No rush. Just watching our money grow.

#17 Alberta Ed on 12.14.15 at 5:50 pm

Brianna sounds like a disaster, soon to be compounded. But not to worry: thanks to Vogue, we can rest easy, knowing we have our very own Barbie and Ken duo at the helm of the Ship of State.

#18 For those about to flop.. on 12.14.15 at 5:52 pm

The worst thing about being a Generation Xer is that in life you get kicked up the backside by the Boomers whilst simultaneously getting poked in the eye by the Millennials.

#19 james on 12.14.15 at 5:53 pm

Very interesting, I went online to look up the survey results that you mentioned. You had mentioned stats on Canadians and lack of disposable income in the past.

You are right that 50k is not a lot of net worth at that stage in life. Although she is past reasonable child bearing years, she should consider the costs of raising a child. That 50k won’t go very far toward her retirement, nor toward the costs of a child.

Not mentioned is the nature of her job, and whether her employment is precarious or vulnerable to a downturn. Even if it were stable I’d say buying a condo right now is a very very questionable decision at best. Downright insane at worst.

#20 lala on 12.14.15 at 5:55 pm

Brianna don’t listen to them, get the house and the condo as a back up plan. Prices have nowhere to go but up, this is Canada and everyone wants to live here. As soon as you get in the market better for you and for us as well :)

#21 BC Guy on 12.14.15 at 5:55 pm

Welcome to the greatest country on Earth.

If you want a job, you need to get an education.
If you want an education, you need to take on massive student loans.
If you’re smart and lucky, you’ll graduate.
If you’re very smart and lucky again, you’ll get a good job with govt or corp, or maybe even start your own company.
But then you need to pay off your student debt.
And you need to find a place to live. Houses are unaffordable, so maybe you’ll be lucky after a few years and save up for a downpayment for a condo.
Then after several years, if you haven’t been laid off and if your condo hasn’t slapped a massive special assessment on you, you may be ready to upgrade to a starter home (i.e. townhouse in Mississauga, Brampton, Rexdale, Bramalea, Oakville, North York or Etobicoke).
Then if you’re really lucky and haven’t been laid off and haven’t been divorced, and you’ve payed off your student loans, and you haven’t developed a drinking or drug problem from job-related stress, maybe its time to start saving something for retirement.

Welcome to the greatest country on Earth.

I guess it beats being a slave peeling shrimp or making electronics in Thailand or China.

#22 Gordie Beamer on 12.14.15 at 5:56 pm

Savers and investors have always been in minority in my circle of friends and co workers. A few saved up for down payment but mostly either jumped in over their heads or bank of mom.rode real estate inflation,making a small fortune with out breaking a sweat. Money for nothing.

#23 Frank on 12.14.15 at 5:57 pm

So if I’m the “smart” millenial at 31 who makes north of 100K and has 250K savings why am I losing?

While the last 5 years have been kind in the market this year has been a dud. My friends have a similar net work thanks to real estate appreciation gains (their only investment) over the last 5 years except they live in nicer places.

We’re in the same place except my balanced portfolio offers no comfort. I gotta say doing “the smart thing” doesn’t seem rewarding. I totally understand why the majority acts the way they do.

#24 Doug t on 12.14.15 at 5:58 pm

Best advice my dad gave was “son marry for love and make sure she is rich”

#25 Anthony on 12.14.15 at 5:58 pm

Replying to #14 Mark on 12.14.15 at 5:47 pm

Your wrong. I’m 29 and have seen $20k CAD growth in my TFSA alone. Self directed account at Questrade buying mostly ETF’s.

#26 BC Guy on 12.14.15 at 5:59 pm

… or you can compete with thousands of other renters over a crappy little one bedroom apt in a high-rise on some nameless, soulless street with cooking smells in hallway day and night …

Just sayin.

Or you can own one for twice the rent and not be able to move. Just sayin’ — Garth

#27 P.Giddy on 12.14.15 at 5:59 pm

The boomers are no better. All the kids left home? Let’s upsize to the McMansion we always wanted. Plus we can fund our kids poor financial decisions.

Both the boomers and the millennials are screwed. Thanks to their own stupidity. It only makes sense at this point to put GenX in charge of everything.

Oh crap. We already did that….

#28 JSS on 12.14.15 at 6:00 pm

I have to agree with #14 Mark.

Even the so called experts are consistently wrong where to invest money for some decent ROI. Never mind the average John Doe or Brianna.

#29 Broke Dick on 12.14.15 at 6:02 pm

(c) she can then team up with her iffy BF who has ziltch and makes peanuts to purchase a ‘matrimonial home”-GT

does it really mater if he makes dick all. What about love Garth?

#30 gray man on 12.14.15 at 6:06 pm

http://thewealthwatchman.com/cracks-are-appearing-time-is-running-out-for-a-cornered-federal-reserve/

#31 Freedom First on 12.14.15 at 6:06 pm

Well, since you asked.

Brianna. Pay off your student loans now. Rent. Save more money. See a lawyer about the possible ramifications if you decide to live with your boyfriend. He may be high risk having a much lower income than you plus a kid. Play safe.

Also Brianna, relax, you are not in dire straits. A reminder, at your age, with no children, 0 debt, and a good income, you are Grade A girlfriend material.

#32 Yeah baby who luvs ya on 12.14.15 at 6:08 pm

#15 mark on 12.14.15 at 5:48 pm

BMO ZPR Preferred share laddered index ETF down another -1.8% on the day.

Issue price when launched was $15. Current price $9 bucks and change, what a slaughter!

The poor souls that bought several years ago.

http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=ZPR-T

———————–
Tank em all… down down they go

#33 snaggle puss on 12.14.15 at 6:09 pm

Got Bond Etf’s….yeah…they own some of that

http://business.financialpost.com/investing/etfs/five-mind-blowing-stats-from-the-selloff-in-the-worlds-biggest-junk-bond-etf

Bonds…prefs’…..freakin sinkhole of pain…join the club eh?

#34 Nanaimo Bar on 12.14.15 at 6:11 pm

Mr Turner

“Poor lambs. The big shearing awaits.”

I have never heard it explained like that. Yes, this will be no small haircut for the young. The Sheep Hearder has all the Lambs in his pen. One eye on the sharpening wheel and the other eye on the Lambs. Time is on his side.

#35 not 1st on 12.14.15 at 6:11 pm

Ha, watching Janet Yellen squirm on tv is like watching your grandma do a commercial for viagra.

Fed is limp and impotent and so done. They will be walking that quarter point back before the summer.

But, but… you said there would be no increase. — Garth

#36 Broke Dick on 12.14.15 at 6:12 pm

And Brianna ain’t even a Millennial. As a group, that bunch is headed for financial perdition. A new US survey has just found 52% have less than a thousand dollars saved. Over 70% have under five thousand. Even among those earning between $100,000 and $150,000 half have put aside less than $5,000. And among the geezer Millennials (ages 25 to 34), 47% have just a grand or less.-GT

————————–_______________________

Don’t forget Garth, mortgages are forced savings.
I think they need the help.

In a declining condo, they are forced losings. — Garth

#37 JamesA on 12.14.15 at 6:15 pm

Cute dog. Sad story.

Biology is cruel, especially to women and child birth. There is strong positive correlation between the age of the parents and the incidence of autism. The current rise in autism may be related to people putting off having kids so long.

Also, there is way more to being a parent in TO than just buying a house. You are probably going to have to send them to private school, get daycare and all the activities. Or you have to move to the burbs and commute for 2-4 hours a day.

Ugh, life sucks sometimes.

#38 Zorba on 12.14.15 at 6:15 pm

Collective RE madness.

#39 sue on 12.14.15 at 6:16 pm

I read that The BAnk of Canada would consider negative interest rates. To me, that seems like being paid to borrow money which sounds crazy. Has this ever happened in Canada and what are the odds?

The odds of you being paid to borrow are zero. — Garth

#40 Broke Dick on 12.14.15 at 6:19 pm

Don’t forget Garth, mortgages are forced savings.
I think they need the help.

In a declining condo, they are forced losings. — Garth

tomato tomahto

#41 Simplyput7 on 12.14.15 at 6:20 pm

How about you rent in an area you like, pay down the debt and drop the good for nothing boyfriend. You can buy when the market cools down; outside of the major cities in Canada home prices are more reasonable – just wait, this housing frenzy will end soon. Takes some time to figure out what you want in life, put your needs first for once.

This isn’t about the fact he makes less than you, he’s living with his parents with no savings – what if there was an emergency, who would financially care for his child? If he’s irresponsible with money now, what happens when you have unexpected home repairs and a mortgage due? Do you really want to share a life with this man, if he doesn’t change? Your future kids would be stuck with this man as a father for the rest of their lives, would you want to have kids with this man the way he is now? Your kids will be affected by this.

Run don’t walk away from this relationship. And rent.

#42 Why Why Jay on 12.14.15 at 6:22 pm

Can we cut Bri a bit of a break? As a moist virgin she doesn’t understand the costs associated with closing a property let alone maintaining one.

Condos suck. Besides your normal costs (utilities, property tax, insurance, general maintenance) there are strata fees, which make it quite difficult to break even. A building with low strata fees WILL have a special assessment at some point (because they won’t have enough contingency come time to replace the roof or elevator). And there is the question of whether you CAN rent. Some buildings put restrictions on whether you can rent or how many units can be rented at one time. Those tend to be more desirable buildings in my experience. If you want to own part of an apartment, why not just buy some REITs? If you want higher risk, invest in a private company that holds real estate. It’s still a lot safer than holding a single condo yourself.

You could be making a few hundred per month in dividends from investing $100K in an REIT. Buying a condo just guarantees you monthly costs along with surprise costs periodically (e.g. water heater). Income isn’t guaranteed no matter what the vacancy rate is and desperation can force you into taking on a sub-par tenant (late rent, bylaw complaints and fines which you are liable for, repair costs and time before renting it out again when you finally get rid of them..).

Don’t do it. Make your money work for you, not the other way around.

Also, ditch the bum. 40K at his age? Does he still have aspirations of being a white rapper or something else laughably ridiculous? Plenty of eligible men that can bring a lot more to the table for your “matrimony” home. Ones without minor criminal records. Ones that haven’t had to “become a new person” and “make a really good try at it this time”.

#43 I am the Babbler on 12.14.15 at 6:23 pm

Sure, debt is way up, but rates are super, super low. That’s why. And there will be no comeuppance. Ever. Rates cannot rise significantly because everybody would be creamed. Simple as that.

#44 Josh in Calgary on 12.14.15 at 6:25 pm

#21 Frank on 12.14.15 at 5:57 pm
“So if I’m the “smart” millenial at 31 who makes north of 100K and has 250K savings why am I losing?

While the last 5 years have been kind in the market this year has been a dud. My friends have a similar net work thanks to real estate appreciation gains (their only investment) over the last 5 years except they live in nicer places.

We’re in the same place except my balanced portfolio offers no comfort. I gotta say doing “the smart thing” doesn’t seem rewarding. I totally understand why the majority acts the way they do.”
—————–
It’s like this Frank. A rising tide lifts all ships. It’s only when the tide goes out that you find out who was swimming naked.

In other words a risky bet pays off when all is going well. But when shit hits the fan you’ll be glad you are diversified and liquid. You’ll get 100 forecasts as to when that is, but you never know for sure.

#45 Ken on 12.14.15 at 6:25 pm

iffy boyfriend lives with his parents,(Red Flag) obviously in his 30’s or 40’s, Get a dog, dump the boyfriend, rent for a year, pay off the student loan, Buy some popcorn and doggy treats, as the housing circus is just getting started.

#46 PVSinsight on 12.14.15 at 6:26 pm

So, she makes good money but has three challenges to sort before making such a major financial decision:

1) relationship wise- is this a life partner or not?
2) debt wise- pay it sooner, invest, and then look at buying property. Housing will fall if you can wait. Condos will not be a good long term investment. Homes are a better bet.
3) location wise- you’re already living in a very expensive part of Ontario. If there is a long term possibility of working and living outside the core, consider the pros and cons of moving. Add to that raising a family, and it’s an added challenge on top of the others.

I also understand she is not that young, but messages telling her she’s too old to bear children or that she is a ‘financial cripple’ are a bit harsh. When the average person makes half of her salary with added life problems, she’s doing ok. So, lay off on the negativity.

#47 An attempt at an answer on 12.14.15 at 6:26 pm

1) The price of a 300K condo dwarfs in comparison to breaking a lease. (what, you lose 1 month and security deposit?). Get over it.

2) if you move in together (does BF son move in too?)
What’s the phrase – common-mom-in-law? Is that why the two of you can’t live together in the current apartment?

So you are basically supporting the son, and that is why you need to buy a place?

3) Do the math – the rent won’t cover your mortgage payments + fees + taxes + expenses. Therefore, how will it be an investment? (right – prices will drop when you buy, but go up thereafter…)

4) How are you in your late 30’s with 65K student debt? With 100K, if I read between the lines, I guess you went into management and got an MBA?

5) BF matching 0 savings is still 0. Anything times zero is zero.

6) You’re late 30’s… are you planning on having kids? Your income then will be close to zero.

7) Do you plan on having vacations?

8) Do you plan on ever retiring?

9) In short, priority should be financial planning for you, career planning for him. When that is done, then ask “do you have enough money?”

I suspect the answer is no.

#48 X on 12.14.15 at 6:30 pm

Rent. Inevst your $. If you need to leave before the 12 months, get a sublet renter (ensure you can in your renters agreement or rent another unit). After 12 month you are month to month.

#49 valleyrenter on 12.14.15 at 6:33 pm

Was out Christmas shopping today. Wandered around Best Buy and changed the iPad home screens to Greater Fool. Bwahaha.

#50 Blimey on 12.14.15 at 6:33 pm

Making 100K and dating some sponge who lives with his parents and his own baggage. Still wants to buy him a house and give him more children. And they complain about where all the good men are gone, they went extinct because these are the ones that reproduced.

#51 gut check on 12.14.15 at 6:37 pm

Advice for Bri is not to plan this sort of thing based on a man. Nothing against this particular fella, it’s just a good general rule.

Side note: Yes, Freedom First, this same applies should character’s genders be reversed

#52 lala on 12.14.15 at 6:37 pm

Never been busier, thanks to ppl like Brianna. Pls Mr. Turner let them do as they wish. You know I make more money in bad times. Brianna get the condo and the house don’t listen to them.

#53 Toronto_CA on 12.14.15 at 6:40 pm

Oh Brianna,

“My family is unwilling to help financially, as they are disappointed in my boyfriend.”

Listen to yourself. You’re in your late 30s. Why in God’s name are you looking at your parents to give you money at all? Who cares about your boyfriend, you’re a goddamn adult who makes six figures a year. You need to stand on your own feet and not even think of going to your parents for a hand out. That’s shameful and disgusting. Leave your parents alone.

That said, why not take the $110k I assume is in cash (since Garth did not specify I could be wrong though), and invest it in something, rather than tossing it into a condo that won’t likely appreciate and will have negative cash flow if you rent it out?

$110k could get you $500 or so a month after tax if invested well, more if you keep adding to it each year. I hope you are also contributing the most you can to your retirement accounts.

From what we read, it does not appear you are sure about this relationship as others have pointed out. He’s older, has a child, no savings, poor earnings relative to yourself, and perfectly willing to live with his parents despite his advanced age. This is not, on paper anyway, what we’d call a winner. Time is a ticking if you want a family, and I’d probably not look to this man as the father of my child. I’d break it off before you waste more time with him and get yourself out on the market with someone more compatible.

As for the time to buy, I’d rent and keep saving. It sure looks like the GTA and Vancouver have defied gravity for as long as humanly possible, but the headwinds facing Real Estate in 2016 are significant. If you’re wrong, hell, you can pick up a great place outside of these two areas with little or no mortgage if you continue to save/invest. What’s so great about Toronto, anyway? I’ve been here a long time and don’t find it so great. At least not at these prices.

#54 Investx on 12.14.15 at 6:41 pm

“In a declining condo, they are forced losings. — Garth”

And if in a declining ETF?

No mortgage insurance, interest, condo fees, property tax or closing fees. Just wait. — Garth

#55 For those about to flop... on 12.14.15 at 6:43 pm

#25 Anthony on 12.14.15 at 5:58 pm
Replying to #14 Mark on 12.14.15 at 5:47 pm

Your wrong. I’m 29 and have seen $20k CAD growth in my TFSA alone. Self directed account at Questrade buying mostly ETF’s.

/////////////////////////////////////
Geez the only time I seen my TFSA go up that much was when I made a 20k donation …um I mean contribution!

#56 No debt on 12.14.15 at 6:47 pm

Hey Bri, can you post a pic in chips pants! Thanks

#57 Hawk on 12.14.15 at 6:48 pm

There’s a very appropriate song in the season to be jolly that summarizes the Title of this thread. So hear goes :-)

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

Santa baby, slip a sable under the tree, for me
I’ve been an awful good girl, Santa baby
So hurry down the chimney tonight

Santa baby, a ’54 convertible, too, light blue
Well I’ll wait up for you, dear, Santa baby
So hurry down the chimney tonight, yeah

Think of all the fun I’ve missed
Think of all the boys I haven’t kissed
Next year I could be just as good
If you check off my Christmas list

Santa baby, I want a yacht and really that’s not a lot
I’ve been an angel all year, Santa baby
So hurry down the chimney tonight…………LOL

#58 Andrew on 12.14.15 at 6:49 pm

I feel for Bri because paying rent sucks but I really got to agree with garth on this one. At least as far as Toronto goes. But I don’t see why everyone has got to live in the city. Why not move north and join the real Canada, prices are more realistic. Maybe Garth will chime in but North of Barrie prices don’t seem to bad.

#59 Drill Baby Drill on 12.14.15 at 6:50 pm

Let’s see almost no equity, owes $65K in student loans, loser boyfriend with kid with no prospects and she wants to buy a starter condo then a home. What could possibly go wrong ?

#60 DigDeep on 12.14.15 at 6:51 pm

If she read this blog, as she claims she does, she would not have these questions.

What she is seeking is the rainbow unicorn by a stream flowing chocolate on always sunny days.

And she will keep asking these sorts of life questions until she gets an answer she likes.

I doubt she will find it here. Reality bites.

#61 not 1st on 12.14.15 at 6:52 pm

Get rid of the dead beat time waster first, then go down to the lake and jump in, then turn on the news and see whats going on in the economy. Any body contemplating a condo purchase is way beyond a fool.

#62 Smoking Man on 12.14.15 at 6:53 pm

A teacher asked her 6th grade class how many of them were Justin Trudeau fans.

Not really knowing what a Trudeau fan is, but wanting to be liked by the teacher, all the kids raised their hands except for Little Johnny.
The teacher asked Little Johnny why he has decided to be different… again.
Little Johnny said, “Because I’m not a Trudeau fan.”
The teacher asked, “Why aren’t you a fan of Trudeau?”
Johnny said, “Because I’m a Conservative.”
The teacher asked him why he’s a Conservative.
Little Johnny answered, “Well, my Mom’s a Conservative and my Dad’s a Conservative, so I’m a Conservative.”
Annoyed by this answer, the teacher asked, “If your mom was a moron and your dad was an idiot, what would that make you?”
With a big smile, Little Johnny replied, “That would make me a Trudeau fan.”

#63 Bram on 12.14.15 at 6:53 pm

Brianna,

You should rent, and definitely do not get a double debt for two homes.

Breaking a rental lease early is very cheap compared to the fees and taxes involved in purchases and sales of condos.

Dump the boyfriend, and buy after the housing crash. Even if you have to wait another decade for the crash. Because it will happen sooner or later.

#64 Drill Baby Drill on 12.14.15 at 6:55 pm

#29 Broke Dick
“What about the love ?” Is that how you got your name ?

#65 Drill Baby Drill on 12.14.15 at 6:59 pm

#38 Sue
Negative interest rates would mean that your deposits could be charged interest whereby over time your deposits could be zero.

It refers to inter-bank deposits, not consumer rates. — Garth

#66 BG on 12.14.15 at 7:02 pm

Garth, 100k is a good salary most people will never make.

Median personal gross income in Canada is like 45k maybe?

I’m not saying she should buy Real Estate, but saying she’s a financial cripple makes you sound even more disconnected than her.

Net worth under 50K at almost 40 years of age is a disaster. — Garth

#67 Smartalox on 12.14.15 at 7:03 pm

Brianna, I don’t see why yours has to be an either/or proposition. Renting a place has got your this far, what’s the harm in continuing?

So you’re locked in for a year? A year is nothing if you plan to spend the rest of your life together. A year may be an issue if you’re looking to start a family, so you might wan to talk to your doctor about your plans, and have him run some tests. The first steps are manageable, and can clarify your options, though costs do ramp up quickly after that. Budget a minimum $25k for treatments, or adoption.

If you do decide to marry the BF, be sure to get a pre-nup. With a child of his own, if you marry (or shack up for three years) he may have a claim for child support.

Life isn’t about choosing ‘Plan A’ or ‘Plan B’ at 20-something, and then riding that through to retirement. It’s about going a few steps, making a choice, then going a few more steps, and making another choice.

Having liquid assets helps keep your options open. Also, closing off the consequences of one choice (i.e.: paying off the student loans) before making another makes the burden a lot easier.

#68 batt519 on 12.14.15 at 7:04 pm

Bri is emblematic of most people in our demographic and it’s very disturbing. She’s somewhat bright, talks too much, doesn’t pay attention and will only learn the hard way. I blame the neurological damage of television.
What’s the +/- on her favourite television show being Big Bangalow or Two Broke Chics.
Let her eat cake.
Suburban ‘boomers’ have the same sense of entitlement too, but they’ve already-the smart ones-got high equity that’s in the cross hairs.
I’m 45 and the more I think about the more I think I may be inclined to favour Bill C-51.
$ilver is a steal.

#69 Parsonage on 12.14.15 at 7:05 pm

Brianna:
Props to your parents.
Beware the BF’s spoiler parents.

Oh, and by the way, was that your BF who replied (when asked if he planned to marry you) “No. Plan to lease not own. Leases are more easily broken.”

You have checked if the BF’s son’s Mom is still in the picture? Or has that lease expired?

#70 slim on 12.14.15 at 7:05 pm

Bri:

Forget about buying, especially a condo. You can’t afford it, anyway. Start socking away funds for retirement and keep renting. And last but not least, say “Hasta la vista” to the basement dweller. You need to get on with your life.

#71 Brian Ripley on 12.14.15 at 7:14 pm

“How I should handle my finances and living situation?” Brianna

Although reported vacancy rates are low… there are a lot of rental units competing for an offer. My back of the napkin chart of rentals advertised online is here:

http://www.chpc.biz/6-canadian-metros.html#Rentals

The reason why so many rentals remain empty at month end is because the asking prices are too high. You can help by negotiating.

#72 Not tonight honey on 12.14.15 at 7:14 pm

Bri,

If you were one of my dear friends I would suggest the following:

1. Don’t buy a condo. There are good reasons why you hear folks saying ‘I’d never buy a condo again’. If you feel it necessary to purchase a home perhaps wait until you can truly afford a house?

2. Living together and marriage are also business arrangements thus should be treated a such. Consider a legal agreement to protect all stakeholders prior to moving in together.

Good luck, you deserve to be happy and equal to that you deserve to be healthy & safe; all three are your responsibility to pursue & protect.

Kindly,
NTH

#73 Tony on 12.14.15 at 7:17 pm

Re: #14 Mark on 12.14.15 at 5:47 pm

It’s even worst for the Millennials they grew up on video games and video games teach you one thing how to lose or you always end up losing. That’s where most of them must have got their mindset from.

#74 Nagraj on 12.14.15 at 7:17 pm

It’s still The Night Before Ratemas back at the Inn on the Moor.

Sir Gareth is roused from his deep and dreamless sleep by a troubled Fidelio pokin’ his snoot into Sir Gareth’s face – Fidelio is hearing, still miles away, a Hellish thunderstorm advancing.
It takes Sir Gareth all of a brief moment to figure out what’s goin’ on (the rain is comin’ sideways and the shutters are rattling). He lets Fidelio jump on the bed, skritches him behind the ear, speaks to him kindly, hoping to keep the huge dog calm.

In the better room, in his regal red velvet-draped four poster, Lord Doomergloomer is – finally – asleep.
The pages of “The Highwaywoman”, which he’d been memorizing, slipped from his hands, are scattered over the bed and floor.
His bottle of Port, which fine soporific sent him reeling into the arms of Morpheus, is precariously perched on the edge of the nightstand and only the hand of Bacchus himself has kept it from bleeding to death onto the satin sheets.
Next to the Port the flame of the nearly spent candle already driven to flickering insanity by the invading draughts, dances for its life as his lordship’s alarmed guardian angel tries to snuff it out with bare fingers.
Crazy shadows distort the room.

The daring Lady Ellen, the “Highwaywoman”, is riding riding riding . . . spurring her magnificent horse mercilessly on through this dark and stormy night . . .

TBC

#75 MF on 12.14.15 at 7:18 pm

#23 Frank on 12.14.15 at 5:57 pm

Yup. I’m 32 and feeling the same way. I can see why our generation says screw this stock market stuff on average. Started in April of this year and I am actually down about 7%. Even supposed safe stuff like my bonds are down. I bought CPD too. Refuse to sell at such a loss so I keep holding on. It’s garbage but I guess I chose the wrong time to start. Just bad luck. The poster below who posted the tide reference gives me a little comfort.

It’s like every time my net worth reaches a certain level (about 75k) cpd or Zcn or something goes down further. It’s frustrating tbh. Took lots of work and sacrifice to make that money and watching it go red hurts. On some level I keep thinking eventually I will go numb to the sting of seeing yourself thousands in the red, sort of like how hard physical training makes you stronger if you do it enough. Here’s hoping next year is better.

MF

#76 Bat Flipper on 12.14.15 at 7:21 pm

How can so many people own a home & be in massive amounts of debt, but so many other people can barely come up with a few grand. Between the bank of mom and dad and the actual bank through loans, cash back, credit, cards, etc. The sheeple are in way over their heads.

#77 Godth on 12.14.15 at 7:22 pm

Our whole culture lives by the premises that:
a) 5% of the world’s population consumes 30% of the global resources by magic

and…

b) infinite growth on a finite planet is somehow sustainable.

What was your Point?

#78 waiting on the westcoast on 12.14.15 at 7:23 pm

Everyone is looking at this all wrong… Brianna has a massive opportunity here.

Move in with BFs family and save even more. If BF only makes 40k with one job, he needs to double up with job #2 at night. Ramp up savings with parents 2x program on savings.

Added stress of whole family at their home kills off in-laws (over next few years) and you capture that nest egg too. Now you own their McMansion, have their cash, and with increased savings able to pay down your debt and even afford a few in vitro sessions…

Problem solved!

#79 ROCK BEATS PAPER on 12.14.15 at 7:23 pm

One and done! I just hate betting against the commercial traders. Maybe it will be an increase, but less than a quarter.

#80 JSS on 12.14.15 at 7:26 pm

Could it be that the deadbeat boyfriend is well endowed, and doesn’t want to leave him.

There are many reasons how and why women choose certain men. Not all of them make sense.

#81 Joe Schmoe on 12.14.15 at 7:26 pm

It always baffles me that people send in these requests.

I guess they don’t know about the blog when they contact Garth.

Or don’t read.

Or don’t critically think.

I guess reading the CBC forums should have steeled me of general ignorance of my fellow Canadians.

Hi Garth! I am 42 with 16 kids from 15 women, have 25K in child support payments a month make 5K month. Someone just ran over my pet and I got a $5k settlement! Should I buy a house with my current girlfriend? She might be pregnant and it might be mine. It will double my monthly housing payments , but what could wrong? Houses will surely double in the 5 years and I might get ahead of payments then! Trudeau will fix all this right? Isn’t the right to houses and forgiven credit card debt in the Constitution? Somewhere in the back? Maybe written in French so no one really read it yet?

Totally Harpers fault.

End Rant.

#82 MSM-Free Zone on 12.14.15 at 7:26 pm

“….Makes $100,000, has saved $110,000……My family is unwilling to help financially….”
_________________________

That’s rich, really rich. The title of today’s blog pretty much says it all.

Nothing to see here, folks, keep moving, keep moving.

#83 Brian on 12.14.15 at 7:27 pm

I know plenty of people (including myself) who are utterly dismayed by the RE market (particularly YVR).

People are defeated and the thought of the paper financial losses had by not buying in when they could have, will never be regained in ones lifetime.

I’m beginning to think there are demographics at play that aren’t considered. Such as immigration funneling into specific areas, provincial migration, urbanization, etc.

When are all the boomers going to kick the bucket?

#84 Jeffrey of Saskatoon on 12.14.15 at 7:28 pm

Emile Henri

#85 Herf on 12.14.15 at 7:30 pm

“Also, i thought maybe better to have my own property aside from the matrimonial house I would share with my boyfriend.”

I think Bri better sit down and do some research concerning marriage and common-law relationships with regards to how property is divided if the relationship ends, before spending a penny. The rules differ depending on whether there’s a marriage contract involved or the the couple are living common-law, and depending on the specific laws of each province. If living common-law, having a family-law lawyer draw up a legal cohabitation agreement is definitely something she ought to explore.

In BC, the laws were changed a few years ago so that the law recognizes common-law relationships the same as marriage when it comes to property division. (See link below with CBC story). Not so (yet) in Ontario, but given the left-wingnut government’s propensity to enact legislation to equalize everybody (although some are always more “equal” than others), who knows how long before the laws in Ontario change to make common-law property division the same as for cases where a marriage contract exists?

The general rule in Ontario is, when the relationship ends, the common-law partners depart with whatever they brought/owned when they started living together. I believe in Ontario, the law considers the couple “common-law” if they’ve been together for three years.

If Bri moves in with the (questionable) boyfriend, then the shared home won’t be a “matrimonial home” (which could be a good thing, depending on who actually owns and/or helped pay for it). If the relationship ends, the home goes to whoever owns it (i.e. whose name is on the title), unless the other partner goes to court and can show they made a substantial economic contribution or sacrifice that enabled the other partner to buy it. This is the case in Ontario for now. But going to court is usually messy and expensive.

Here are some links to get her started. (I had them book-marked in my browser after helping a friend research common-law relationships and property division). Some point to links containing downloadable pdf documents which are worth saving:

http://nawl.ca/en/money

http://www.onefamilylaw.ca/

http://www.onefamilylaw.ca/en/english/

http://www.cbc.ca/news/canada/4-myths-about-common-law-relationships-1.1315129

http://business.financialpost.com/personal-finance/9-frequently-asked-questions-about-common-law-unions

http://yourlegalrights.on.ca/legal-topic/family-law/marriage-and-common-law-relationships

http://www.cleo.on.ca/en/publications/propertydiv/married-or-common-law-does-it-make-difference

http://www.cleo.on.ca/en/publications/propertydiv

http://www.commonlawrelationships.ca/ontario/

http://yourlegalrights.on.ca/

Garth’s rule is “never buy real estate with anyone you wouldn’t sleep with” (words to that effect), but from the above information, I say the issue can be a lot more complicated than that.

If Bri is serious about moving in with her El Bumbo boyfriend, I would suggest she consult with a good family-law lawyer and have a good cohabitation agreement drawn up before she digs herself into a black-hole vortex of a relational and financial mess.

#86 Investorz on 12.14.15 at 7:31 pm

Garth will like this one:

“Australian borrowers will probably face higher interest rates next year as lenders pass on the expense of meeting new regulations” (PIMCO)

http://www.bloomberg.com/news/articles/2015-12-15/pimco-sees-aussie-mortgage-rates-rising-as-rules-squeeze-banks

Oh, and our stock market went down 0.74% while the US market went up 0.48%. Sell your canadian banks, buy U.S ones. BMO has an ETF called ZUB. Or keep your canadian banks and get no growth.

#87 MF on 12.14.15 at 7:31 pm

So tired of waking up and reading that “the markets are jittery in anticipation of this fed meeting”. Jittery? Again?! I mean we went through this “panic” and “fear” in August leading up to the September meeting. Then some numbers were MISSED, the lift off halted, and the market rallied? Does not make sense. It’s not as bad this time but man Yellen has been prepping everyone for months/years that things will normalize eventually and the rise will be gradual. Is everyone that scared? There was even a Financial Post article titled “The Fed Spooks” last time. Really? Are people really scared? Now I’m on board with the US recovery story. Still skeptical, but the majority of signals indicate a healthy recovery. The ultra low rates are like life support designed to shock the economy back into growtg. How, with years of positive government reports, and ample warning, are people still sooo spooked???

Just frustrating. Sorry for the rant.

MF

#88 ANON on 12.14.15 at 7:32 pm

Wandered around Best Buy and changed the iPad home screens to Greater Fool.

You, Sir, owe me a new keyboard. Actually you get 10% off, since the alcohol spit on the screen saved me some Windex :)

#89 AlbertaGuy on 12.14.15 at 7:32 pm

.1 or .15 increase max

#90 cdn mortgage fraud on 12.14.15 at 7:34 pm

My brother in law in Canada thinks sub prime mortgages only happen in the US. Front page of Globe & Mail….(isn’t that organization from Canada?)

“It has come to light that institutions have been, I would say inadvertently, making mortgages to people whose income has been falsified,” said Jeremy Rudin, superintendent of financial institutions.”

2016 is going to be an interesting year.

#91 Parents still matter on 12.14.15 at 7:35 pm

Brianna,

Your parents probably love you and care for you. In generations past, and in many other parts of the world, people don’t get married unless the parents approve. We as a society have swung the other way and often take little advice from parents when choosing a mate. Maybe your parents can give you some concrete reasons why they think the guy is a poor match for you?

My point: Figure out the guy thing before you spend time on housing.

Warning!!!! – Freedom First thinks you would make good girlfriend material. If your smart, you’ll focus on attracting a higher quality of male by being a higher quality woman, because clearly something is amiss.

#92 nonplused on 12.14.15 at 7:40 pm

Ladies making $100,000 do not marry gentlemen making $40,000 and supporting a kid.

#93 Millmech on 12.14.15 at 7:40 pm

Brianna if it doesn’t work out with him,his present will be your future.

#94 common sense on 12.14.15 at 7:44 pm

Bri:

Do you want a stress free life? Don’t buy.

Want a lot of stress financially? BUY.

Very simple.

#95 Mark on 12.14.15 at 7:45 pm

“Negative interest rates would mean that your deposits could be charged interest whereby over time your deposits could be zero.”

The problem with negative interest rates isn’t that one will actually lose “money” (as, after all, if a positive rate can’t be achieved, simply keep your money in the mattress). The risk is that investment in the economy will be so severely attenuated that eventually very strong inflation will follow the deflation they’re fighting once a suitable trigger arises.

There might be bumps, deflations, etc., along the way, but eventually every fiat currency moves towards increasingly low value.

#96 the Jaguar on 12.14.15 at 7:47 pm

I would have sworn she was a millennial the moment I read her ‘ASAP’ in her email to you. The link to ‘it’s all about me, stop what you are doing and focus on me’ is usually a dead giveaway. A small capital position given her age and income for sure.
And committing to ‘matrimonial home talk’ with a guy you ‘might move in with’ in the next year or 18 months doesn’t sound like true love found. Garth probably proposed to Dorothy on their first date. He knew magic when he saw it.

#97 saskatoon on 12.14.15 at 7:47 pm

#60 Smoking Man

this is what happens to little johnny when he refuses to believe in anthro. global warming:

https://www.youtube.com/watch?v=FS5CH-Xc0co

it seems like a parody.

it’s not.

#98 Caught In The Grip on 12.14.15 at 7:48 pm

Using a stock market analogy I would describe the Canadian housing market as a whole being where the TSX was in May 2008. While other markets had already turned down (i.e. the S&P 500 & financials) the broad TSX kept going up toward one final “last bid” as oil spiked all the way to $147/bbl.

Despite the fact that Fort Mac, Calgary and other markets are already giving “bridge light out” signals, the whole housing market (espicially the GTA) will rise in one last Hail Mary last bid toward a final historic top. It will then decline for more than a decade.

#99 Drill Baby Drill on 12.14.15 at 7:49 pm

#81 Brian
“When are all the boomers going to kick the bucket?”

In about 20 to 35 years.

#100 Herf on 12.14.15 at 7:50 pm

Follow-up to my previous post with the links on common-law relationships:

Bri might want to also check the various sources I linked, regarding the laws surrounding being in a common-law relationship involving a child, even if it’s not her kid. She could one day find herself on the hook for paying child support for her boyfriend’s kid.

See Item No. 3 “Child Support”, available at this link:

http://www.onefamilylaw.ca/en/english/

#101 Victor V on 12.14.15 at 7:52 pm

Mortgage fraud poses key threat to Canada’s financial system: OSFI

http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-fraud-poses-key-threat-in-canadian-housing-market-osfi/article27750486/

Canada’s banking and insurance regulator highlighted fraudulent mortgage practices as a key threat to the country’s financial system, prompting consultations with lenders over how to ensure that the system can withstand a severe housing market downturn.

“It has come to light that institutions have been, I would say inadvertently, making mortgages to people whose income has been falsified,” said Jeremy Rudin, superintendent of financial institutions.

“One of things we’ve been doing is encouraging sound risk management. And as we set out in our guideline on mortgage underwriting, income verification – checking to make sure the borrower has the ability to carry the loan – is an important part of sound underwriting.”

His comments follow an extraordinary series of co-ordinated announcements on Friday from the federal Finance Minister, the Office of the Superintendent of Financial Institutions (OSFI) and Canada Mortgage and Housing Corp., designed to curb risks associated with red-hot housing markets in Toronto and Vancouver.

#102 Samthe Sham on 12.14.15 at 7:54 pm

“As a group( the millennials), that bunch is headed for financial perdition”.

What do you expect from a group that gets hysterical about Halloween costumes, requires “trigger warnings” for everything and requires the world to supply them with “safe spaces”. We have created a generation that has been spoiled, coddled and “infantasized”. God help them!

#103 Caught In The Grip on 12.14.15 at 7:55 pm

The Canadian housing market is demonstrating classic early stage bear market divergence (i.e. some markets have begun a downtrend while others are still rising).

The fact that Alberta is declining while the GTA is rising is an ominous sign.

#104 Linda on 12.14.15 at 7:56 pm

If Brianna moves in with her BF, she will learn that all assets are divisible by two. It won’t matter who bought what, when unless she has the BF/putative husband sign a prenuptial agreement before ever they live together. And I’m not sure how much if any protection that document might provide – I guess it would depend on whether they are valid in Canada & if yes, just how well was it drawn up? Which would cost a packet. I do know that once she qualifies as a spouse she is also on the hook for child support, regardless of blood relationship.

As for her student loans, why did she not pay them off by now? If she was able to save $110,000 why was she not able to apply some of the money towards paying off that debt? Did she think it would just go away if she didn’t pay any attention to it? And just how much of that debt is built up interest due to not paying it off?

#105 Yuus bin Haad on 12.14.15 at 7:57 pm

You lost me at “I am in a dire predicament …”.

#106 Godth on 12.14.15 at 7:58 pm

You talk like someone…
https://www.youtube.com/watch?v=HivxFBB87-Y

the young are going to rule. that should be interesting.

#107 MF on 12.14.15 at 8:01 pm

Parents still matter on 12.14.15 at 7:35 pm

Great point, and the same goes for us guys too. When choosing a mate, always find out what her relationship with her father is like #1 and if her parents are still together #2.

If she doesn’t like her dad, huge red flag and pass. Same goes with children of divorced couples to a “slightly” lesser extent.

99% chance she has issues. Ignore his attractive she is because these women will often go overboard with the shoes, heels etc. as an attention grab (to make up for the garbage parenting)

MF

#108 Mark on 12.14.15 at 8:03 pm

“The Canadian housing market is demonstrating classic early stage bear market divergence (i.e. some markets have begun a downtrend while others are still rising).
The fact that Alberta is declining while the GTA is rising is an ominous sign.

GTA isn’t even rising anymore. What you’re seeing is largely an artifact of the sales mix, and the relative bifurcation of wealth between Alberta and Toronto/Vancouver.

A similar thing apparently has been happening in the stock market as well. The so-called “FANG” stocks have been significant gainers this year, while most of the rest of the S&P500 has done nothing. In housing, most people own one house — not an index or a representative sample of housing, and most of those owners haven’t seen any gains and most likely minor losses over the past 2 years.

Same occurred in US RE. The peak of the US RE market was in 2006. Once the lenders pulled back from the subprime loans, lower-end housing dropped as a percentage of the overall sales mix, and average transactional prices continue to rise well into 2007, and even early 2008 even though prices on individual houses were mostly declining. Since not a lot of RE actually transacts in a single year (less than 1/7 of the overall inventory, and even lower than that in older well-established areas), even subtle shifts in the sales mix can lead to significant average transactional price shifts that might not really capture the true ‘situation on the ground’ in terms of pricing on individual identical units.

#109 Ronaldo on 12.14.15 at 8:03 pm

Appears we may be on the final leg of this housing bubble. If indeed there is a rush to buy we could see the lowest price for a condo in Vancr and Toronto at $500,000. Same as what happened when the CMHC insurance was set at 1 million. All of a sudden house prices magically rose/dropped to $999 thousand. Let the bidding begin.

#110 Other Brother Darryl on 12.14.15 at 8:05 pm

Brianna, pay off those student loans!! You are burning up your hard earned money on interest (that you could otherwise be saving for down payment).

Garth will murder me for suggesting this, but you could use the 100k to buy a lovely condo (no CMHC FEE over 20% down), then use a HELOC to pay down the student loans at a substantially lower rate). Actually, don’t do this. Talk to your sister about all the extra costs that come with home ownership (taxes, insurance, utilities, assessments, strata fees, renovations)

Also, do you trust your family? Maybe they see something lacking in your boo, that you can’t see (denial?) #plentyoffish

And to someone’s point already made here, you are a top pick. Most single women your age are a mess. So you have the upperhand…not your BF!

#111 TRT on 12.14.15 at 8:05 pm

Post #99 Victor.

I’m surprised that link lasted this long.

Mortgage fraud can be eliminated by doing 2 things. 1) Get income stat directly from CRA and 2) Any downpayment under 20% be held in a government trust account while the transaction goes thru.

BUT, the gov doesn’t really want to stop the housing party.

#112 Indie Chick on 12.14.15 at 8:05 pm

Hey Brianna,

If the two of you are serious about moving in with one another then find a place to rent TOGETHER. If not yet, then think about yourself and your own housing needs.
Straight up.

#113 MF on 12.14.15 at 8:06 pm

Sorry for the bad editing in the above post. My iPhone typing is atrocious at times.

MF

#114 crowdedelevatorfartz on 12.14.15 at 8:06 pm

Sooooo let me get this straight.
You dont live with “the boyfriend” or his eating machine son yet and you want to buy a condo and move in together …..all with YOUR money as a down payment.
Whats next ? Marriage? And you get to assume all his debts?

Rent with this guy and his son for a year and find out if you’re both compatible. ( I’m betting after 3 months you’ll wanna strangle him but I could be wrong. Anywho. )
If your not “made for each other”.
Then you can move without the financial nightmare of selling a condo in a falling market.

Rent. Dont buy with a guy you’ve never lived with.
Thats financial suicide.

#115 TRT on 12.14.15 at 8:08 pm

#81 Brian
“When are all the boomers going to kick the bucket?”

In about 20 to 35 years.
—————————————————————-

Actually crisis starts when one of the couple passes away.

This is going to get ugly based on the direction the country has taken the last 10 years. Just wait and see.., there will be single homeless seniors.

#116 Herf on 12.14.15 at 8:09 pm

#102 Linda

“If Brianna moves in with her BF, she will learn that all assets are divisible by two. It won’t matter who bought what, when unless she has the BF/putative husband sign a prenuptial agreement before ever they live together.”

You’re incorrect. See the various links in my post at #83, that outline the laws surrounding property division under marriage and common-law relationships.

If they’re living together under common-law, there is no “pre-nuptial” agreement (since they’re not married). They could, however, draw up a “cohabitation agreement”, and it is highly recommended by the legal profession that they do.

Ultimately, it depends on the marriage/common-law laws of the particular province. Bri lives in Ontario, so property division wouldn’t automatically be divided in half. If she were in BC, different story.

#117 acdel on 12.14.15 at 8:11 pm

Makes $100,000, has saved $110,000 but has $65,000 in student loans. WTF???????

#118 Ronaldo on 12.14.15 at 8:13 pm

#93 Mark

”simply keep your money in the mattress).”

That would work until they discontinue the use of cash and go totally digital as below.

http://www.thelocal.no/20151030/norways-second-bank-to-refuse-cash-from-monday

#119 Smoking Man on 12.14.15 at 8:15 pm

Why I hate Tree Huggers.

Modern Liberalism masquerades it self as the ideology of creativeness, and openness, nothing is further than the truth.

It’s a repressive monopolistic evil entity that should be destroyed and wiped of the face of the earth.

It’s anti Individual and pro group, groups are useless, they never achieve anything of substance, when they do it’s usually a trapped individual that does the heavy lifting for all the useless agree-mo-phoebes who share in the spoils of the hunt and contribute nothing but dead weight.

Society can never evolve, invent, improve, without a strong individual spirit. And lots of them.

Liberals are a corrupt street gang of thugs in sheep’s clothing, telling you what’s ok to say and what’s not. They tell you what to think and not to think.

They steal from there kids and grand kids, and the individuals that give this country greatness.

If I see one more 8 million dollar Wynne commercial, my TV is going through the window.

God please let Trump win, perhaps it can motivate like minded individuals in this Country to take on these useless eaters we now have destroying Canada’s economy on purpose chasing the big lie Climate Change.

#120 Neta on 12.14.15 at 8:15 pm

In cases where mortgage down payments represent less than 20 per cent of the value of the purchased home, the loan must be insured against default. The risk of default is then transferred to an insurance company, leaving the lender with low capital requirements.

However, Mr. Rudin pointed out that the insurance company is not obliged to pay claims if there has been negligence on the part of the lender – say, by turning a blind eye toward detecting fraud related to the borrower’s income.

#121 Jack on 12.14.15 at 8:15 pm

Garth: will preferred shares ever recover ? Love the yield but are they on their way to become wall paper? It certainly feels that way.

People here sure give up easily. If you buy an asset for the yield, then enjoy it. Capital values will obviously recover. — Garth

#122 Boombust on 12.14.15 at 8:17 pm

Cameron Muir was blabbering away here in Vancouver today about the huge November RE sales volume during this past November Apparently, the 8,000 or so sales here are on par with the same torrid pace of sales in November, 1989.

I find it interesting that with the HUGE number of NEW UNITS built since 1989, there was NO MENTION of the difference in the overall ratio of sales to the current number of properties that have been built since then.

#123 AlbertaGuy on 12.14.15 at 8:21 pm

fed .1 – .15 max

#124 Warren - the lagging indicator on 12.14.15 at 8:23 pm

Mark “If you have access to them, TD’s e-Series funds can be a low cost way to accumulate funds before you convert them to ETFs. ”

This is really good advice for people not willing to get an adviser or have low funds available. It is easy to understand for almost everyone and it is passive (indexing) except for re-balancing. Look up Canadian couch potato and go from there. I feel the demise of the Income trusts in Canada spurred on this ETF bubble that is occurring and people are over diversifying and over complicating the matter.

#125 VICTORIA TEA PARTY on 12.14.15 at 8:25 pm

MESSAGE TO BRI AND “FRIEND”…

Cut the crap and rent and keep your heads down ,damn you anyway.

It’s coming.

I visited my favourite gold coin dealer today and, after chatting about gold prices and the failing Loonie, he said approximately this:

“People have no idea how bad it’s going to get…”
He was speaking about our economy. “It’s just started (going down)…” he added.

He’s right of course. Actually it’s been going down for about a year or more; the decline is simply much steeper and quicker now.

Then there’s this plump paragraph from today’s James Howard Kunstler blog:

“…Folks who didn’t go to cash a month ago must be hyperventilating today.

But the mundane truth probably is that events have finally caught up with the structural distortions of a financial world running on illusion. To everything there is a season, turn, turn, turn, and economic winter is finally upon us. All the world ‘round, people borrowed too much to buy stuff and now they’re all borrowed out and stuffed up. Welcome to the successor to the global economy: the yard sale economy, with all the previously-bought stuff going back into circulation on its way to the dump….”

NEVERTHELESS, THOUGH…

US Stock markets climbed nicely today inspite of the fact that some junk bond ETFs seem to be about to collapse.

Naturally, Canada’s market plunged again, 94 points.

This means that our “Banks of Mom and Dad’, designed to bail out Millennials and their ilk, are losing equity like crazy and may be tapped-out soon, unless there is a substantial market turnaround.

In fact, a lot of us are losing our shirts right now, regardless of where we’ve “invested” our money. It reminds me of 2008 but it’s actually much worse.

Why?

Because back then there was no QE worth speaking of. Since then the world’s central banks have juiced up on so much money printing that no one really knows what ANYTHING in the markets is actually worth.

That is why idiots parking money in high yield ETF junk bonds for “yield” are about to get so royally screwed you’ll be hearing screams for months into the future. Lovely.

IN OTHER ECONOMIC NEWS…

WTI oil prices climbed a buck or so today, after a re-set higher, but are now going back down, again. Of course they are.

On BNN-TV some commodities trader in Chicago told the Toronto-based talking-head guy that he doesn’t think oil will plunge much below $30 bucks US! Is that right!?

He said the next six months will be volatile and bad for oil prices. Yep. Albertans be warned, again.

As well Encana, that doyen of Canadian corporate dividend payers, has chopped its dividend by some 79 per cent to practically nothing. Zip. Lots of OAS and CPP recipients “own” many of those shares.

Canada, as Garth keeps writing, is in very deep economic trouble.

This means that those of you, and there can’t be too many of you left I really hope, who STILL plan on getting into home real estate any time over the next year, are completely nuts and will suffer accordingly. That ship has not only left the port, the bloody thing is sinking!

And no, the T2 crowd will not bail you out because they don’t have the loot, no matter how many times you Twitter and Tweet as you suck back another chilly lattee. Enjoy.

This economic morass, anchored by an ongoing world-wide currency “war” and perverted by outrageous debt levels everywhere, is in the process of NOT ENDING WELL.

#126 Not tonight honey on 12.14.15 at 8:28 pm

#36 JamesA on 12.14.15 at 6:15 pm
Cute dog. Sad story.

Biology is cruel, especially to women and child birth. There is strong positive correlation between the age of the parents and the incidence of autism. The current rise in autism may be related to people putting off having kids so long.

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

JamesA,

To clarify, it is advanced paternal age which may be linked to an autism spectrum diagnosis. Maternal age has not yet been linked.
Correlation does not indicate causation.

cheers,
NTH

#127 gut check on 12.14.15 at 8:29 pm

MF –

the answers you seek cannot be found in the usual history books, or by consulting your parents, by reading newspapers or watching CNBC. You have got to turn over some rocks that you normally like to dismiss as ‘tin foil hat’ b.s.

the answers are out there though they won’t help you sleep any better at night.

#128 Retired Boomer WI on 12.14.15 at 8:30 pm

Well Brie…

Let me look at this as only an old guy can. Late 30’s, renter, has a BF who has a son.

Well, we can say he isn’t husband material with some certainty. He earns 40 G a year. He has an obligation -his son. You don’t say his age is he 22 or 39? Doesn’t much matter.

You’re hot for a “family” and RE. My dear, you are beyond your “best buy” date as a mom.

You’re not telling me you are in love with the son – an important consideration to me (it’s a back story thing here).

So, I would not buy RE or, the boyfriend. He strike me as a ‘loser’ type. You earn well have a big ass student debt, and unrealistic expectations for late 30’s.

Pay off the student debt, save your money, don’t move in together -anywhere. Shack ups are so…well 70’s. I never heard marriage mentioned here.

If guys can say ‘why buy the cow when the milk is free,’ I ask, why would you want a pig when all you want is a little sausage?

#129 Trojan House on 12.14.15 at 8:32 pm

The haters have really come out on the comment section today. Knowing nothing about the BF other than the sparse details Brianna dishes on him, some of you are quick to judge. No wonder why there will always be problems in this world.

#130 Ugotme on 12.14.15 at 8:37 pm

How does one short the condo market? All the movie the Big Short? Ideas?

#131 Entitled | Realties.ca on 12.14.15 at 8:38 pm

[…] Source: http://www.greaterfool.ca/2015/12/14/entitled/ […]

#132 Daisy Mae on 12.14.15 at 8:40 pm

“Also, i thought maybe better to have my own property aside from the matrimonial house I would share with my boyfriend…..”

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

She’s obviously skeptical.

#133 crossbordershopper on 12.14.15 at 8:40 pm

the guy should knock up brianna, asap. the goal of every women is to support a man. they want to be equal, lets start with that. now, the questions is how bad was the bf girlfriend where she doesnt have the kid? low end and really low end, probably from up the 403 in hamilton.
honesty she should kick out the bumb, and get a real guy, forget about the income difference etc, its just different level of where they want to go in life

#134 Bottoms_Up on 12.14.15 at 8:46 pm

Brianna ask yourself what is going to drive prices higher….other than hormones, it is difficult to find a factor. Thus, until wages increase, prices will likely flatline for a longbtime. There is no rush. Plus, after ypu move in with your worse half, he becomes your common law hubby after only a year and if you split you might find out the hard way you owe him half of everything plus child support. Be careful.

#135 Pilgrim on 12.14.15 at 8:48 pm

Brianna:
1- Rent/Buy this movie
http://www.theway-themovie.com/
2 – Walk the way.
3 – You will realize that you do not need 1/4 of what you think you do, and you will return with a different outlook.
4 – Do not buy anything.
5 – Seek the advice of a professional financial planner.

Good Luck

#136 Parents still matter on 12.14.15 at 8:49 pm

#127 Trojan House on 12.14.15 at 8:32 pm

The haters have really come out on the comment section today. Knowing nothing about the BF other than the sparse details Brianna dishes on him, some of you are quick to judge. No wonder why there will always be problems in this world.

——————————————————–

I doubt very much that people are hating on the BF. If the relationship fails, both parties suffer, not just Brianne. The term “judgement” that you are using is being misused to mean “condemnation.” Each person needs to make multiple decisions (judgements) regarding a complex situation such as this.

Your desires to have less conflict and problems in the world aren’t aided by your desire to not call things as they are. Her parents love her dearly, that’s natural…so they would not want to see her hurt.

Truth without love is brutality. Love without truth is sentimentality.

P.S. – You’ve obviously done little to consider the damage that could be done to the child if the relationship is lousy and/or fails outright. This is a complex situation that you are trying to oversimplify.

#137 MikeD on 12.14.15 at 8:50 pm

When it comes to owning condos in the 416, many still can’t seem to come to terms with the following:

For the overwhelming majority of condo owners, moving up the property ladder in the 416 will remain but a dream. The massive number of newer one, one plus den condos ensures the price should stay relatively flat with a potential to decrease up to 10% over the next 2-5 years (we are also fast approaching a $0.60 dollar, so you can consider that as a bit of extra savings if you are a holder of USD)

There are more people making final mortgage payments on their now $1M+ freeholds, then there are people making final payments on their condos. Freehold owners are sitting pretty and after years of sacrifice to pay off the mortgage, and those looking to sell, will not sell for peanuts- even if it means visiting the food bank once in a while.

‘Downsizing’ is not and will not occur at nearly the rate people are predicting. Why buy a smaller condo when realtor fees + monthly condo fees which always go up, set you back tens of thousands? If anything older kids will swap their condos with parents’ freeholds plus give their folks $ to make it fair and make retirement a bit easier.

Over the next few years, expect price of average freehold in the 416 to go from 3,4 times to 5,6 times the cost of the average newer one or one plus den condo.

#138 asdf on 12.14.15 at 8:53 pm

Garth, any perspective on when I’m entitled to a response from my financial advisor? I emailed him on Nov 30th; the clock is still ticking.

The last time we communicated it took him 21 days. Is this normal?

Is he lunar? — Garth

#139 Julie K. on 12.14.15 at 8:53 pm

#81 Brian

For those of us born between ’55 & 60′, we are just warming up. Think of us now more along lines of Reboomers.

Sorry bro.

#BoomersRule

#AnotherThirtyYears

#140 Ronaldo on 12.14.15 at 8:54 pm

#81 Brian

”People are defeated and the thought of the paper financial losses had by not buying in when they could have, will never be regained in ones lifetime.”

I would hope that the money that they would have poured into owning over those years by not buying was properly invested. If so, they may be the ones cheering when the bubble finally bursts.

#141 asdf on 12.14.15 at 8:58 pm

Is he lunar? — Garth

I don’t think so, but he does work for RJames. Guess we need to have a talk. I’m not day trading, but it did seem excessive to me.

#142 Arfmooocat on 12.14.15 at 9:02 pm

Dump the bo and rent… your free to pick up and leave if you or your career so chooses.

#143 common sense on 12.14.15 at 9:04 pm

#136 ASDF

Unless he is dead or has a serious problem in his life…emergency, major sickness, family death,etc he should be fired.

So freakin Canadian not getting back to people.

My advisor in the USA (I have to have one due to IRS laws) texts me back or calls within 1 hour MAX.

I bet even Garth would get back to you within a day…

#144 JamesA on 12.14.15 at 9:07 pm

NTH,

I did not mention gender in my post. But, yeah, there are several theories. I have heard the age gap theory. Now there is an antidepressant medication theory. We all know the eggs are all issued at birth thing.

http://www.npr.org/sections/health-shots/2014/07/07/328132687/with-gene-disorders-the-mothers-age-matters-not-the-eggs

The spirit of my post was meant to be: don’t wait till its too late. I am speaking from experience.

http://www.hfea.gov.uk/ivf-success-rate.html

apologies for my tone (I am probably on the spectrum) I always manage to come across as a jerk.

#145 Karma on 12.14.15 at 9:09 pm

#23 Frank on 12.14.15 at 5:57 pm
“So if I’m the “smart” millenial at 31 who makes north of 100K and has 250K savings why am I losing?

While the last 5 years have been kind in the market this year has been a dud. My friends have a similar net work thanks to real estate appreciation gains (their only investment) over the last 5 years except they live in nicer places.

We’re in the same place except my balanced portfolio offers no comfort. I gotta say doing “the smart thing” doesn’t seem rewarding. I totally understand why the majority acts the way they do.”
—————————————————–
$250k in savings (cash) or “Net worth”? These are not synonymous. And paper equity in real estate is no comfort in a rising interest rate environment. What the Fed has giveth, shall taketh away.

I’m 31 too. I do a “personal balance sheet” on the last day of every month nowadays to stay on top of all my various investment accounts and RE holdings. My net worth is similar to yours at the moment, partly thanks to Bank of Dad (my mom’s the frugal one), partly due to my north of 70% savings ratio (when bonus is included). And it’s growing quickly.

And you know what, my life is f*%king awesome.

People our age that have big of houses, without the need for larger houses, are effin’ idiots. They “overconsume” real estate and throw away their money on an asset that has a depreciating physical structure sitting on a piece of dirt that’s value is inversely correlated with interest rates. Each square foot they don’t use represents hundreds of dollars wasted that could have been invested in equity or bond ETFs. Housing, despite what realtors say, is a lifestyle choice, not an investment. Furthermore, always remember that linoleum was super popular once too. Granite and stainless steel will, and already started to, lose its popularity.

#146 BG on 12.14.15 at 9:10 pm

#73 MF

You were unlucky to enter a bad time.

My humble opinion is that if you stick to the kind of balanced/diversified strategy promoted by Garth, and rebalance, it will work overtime.

I personally stick to the equity heavy Canadian Couch Potato (25-25-25-25) strategy because I don’t have the money and time to justify something more fancy yet.

Just like you, I have not done too good recently either but I have the psychological advantage of having entered 1-2 years before.

#147 No debt on 12.14.15 at 9:11 pm

Hey Garth, on average what do you think a persons net worth should be at 40? Thankd

#148 joblo on 12.14.15 at 9:11 pm

Hey Bri, cash the savings, pay off loan, move in BF parents house, built in babysitters, mommy can cook, clean and do laundry. no need to get hitched, too old/risky to procreate. Save for the golden years, who needs a house.

#149 45north on 12.14.15 at 9:14 pm

“my father says he will leave me crying”

https://www.youtube.com/watch?v=6fM_jnS-MjY

#150 Leo Trollstoy on 12.14.15 at 9:14 pm

It sure looks like the GTA and Vancouver have defied gravity for as long as humanly possible, but the headwinds facing Real Estate in 2016 are significant.

I agree. It seems that single family detached, townhomes and condos in Vancouver and Toronto continue to increase in price despite the sales mix and nobody knows how long this madness can continue.

http://www.chpc.biz/compare-toronto–vancouver.html

The data is pretty clear that this has been going on for around 15 years. For our collective sake this better end soon. The hangover from this ridiculous price movement will be epic.

I have no idea how prices continue to rise. I just want it to end already.

#151 CANADA'S CRACK- DEBT on 12.14.15 at 9:17 pm

SOMETHING WE CAN’T BE PROUD OF

Canadians owed almost $1.64 for every dollar

http://www.cbc.ca/news/business/statistics-canada-debt-income-net-worth-1.3363704

#152 Don Derc on 12.14.15 at 9:21 pm

Brianna honey – listen up. Buy the house but keep HIM off the books (and the title). Use YOUR money and forget his matched down payment from his folks. AND he’ll sign a rental agreement when he moves in. That’s income that has to be declared. The CRA rules allow you to win so play fair! Of course you can’t buy the house until your student debt is paid off. Ha Ha.

Forget your sister’s place too. After you buy the house, leverage it to buy a 2 bdrm condo. The gray winter (baby boomers) will ensure a solid rental over the next 20 years.

This advice is based on sound money management – taking the profits and prepaying the rental’s mortgage.

Garth will shoot me for this because you don’t rate well in the financial intelligence department but I say you’re smart enough to learn.

Good luck Girl – it will be a weird financial ride over the next 24 months for those who have no cash and big debt…and may or may not have a job. Yikes!

#153 waiting on the westcoast on 12.14.15 at 9:21 pm

Karma says… “People our age that have big of houses, without the need for larger houses, are effin’ idiots. They “overconsume” real estate and throw away their money on an asset that has a depreciating physical structure sitting on a piece of dirt that’s value is inversely correlated with interest rates. Each square foot they don’t use represents hundreds of dollars wasted that could have been invested in equity or bond ETFs. ”

Well said! I wish I was as smart as you/MF when I was in my early 30s.

#154 brico9 on 12.14.15 at 9:22 pm

Royal LePage Foothills shuts down all 6 southern Alberta branches!!

http://globalnews.ca/news/2401060/royal-lepage-foothills-shuts-down-all-6-southern-alberta-branches/

Is this just Ted gone bad or is it a sign of things to come in RE in Calgary? For real this time?

Can anyone shed some light on this?

#155 Sean on 12.14.15 at 9:30 pm

“Big part of the ‘savings’ problem for Millennials is that they simply haven’t seen, in their adult life, returns on investment.”

I remember having a conversation with a generation-older friend along these lines, about my frustration with the markets, around mid-2012. I had lifetime negative growth until the end of that year. He said not to sweat it, over time it always works out. The last three years have helped me see things his way.

#156 Grey Dog on 12.14.15 at 9:33 pm

Brianna, you make me dizzy with your ungrounded expectations.

Since when are parents expected to “pay into” your bizarre real estate schemes…Handicap a life they saved for? Their life.

First PAY OFF YOUR STUDENT LOAN, that is proof you cannot handle debt. You haven’t even dealt with your initial loan. While you are at it, you really need to realize how much money YOU HAVE WASTED by not attending to this. Go to the site Getsmarteraboutmoney. Lots of great calculators here to both see the errors of your ways PLUS the advantages of compounding your savings.

You make a decent income, but you need to get serious about saving AND INVESTING. Not only do you make rental payments, you need to get into fully funding your RRSPs AND TFSA. Believe me, plus if you’re truly read Garth’s blog, you will understand decades of quietly fully funding/investing RRSP and TFSA has rewards when it comes to retirement.

You need to take out a library card…GailVas Oxlade, Suze Orman, just a start to see the error of your current philosophy, read up…investment books come later, it is very apparent you are not ready for these yet. Maybe Freedom First could become your mentor.

Boyfriend, …. Yikes just listen to yourself, or reread info you sent Garth.

Good Luck, your parents love you but they don’t OWE you. Why would you feel so entitled?

#157 Karma on 12.14.15 at 9:33 pm

#81 Brian on 12.14.15 at 7:27 pm
“I know plenty of people (including myself) who are utterly dismayed by the RE market (particularly YVR).

People are defeated and the thought of the paper financial losses had by not buying in when they could have, will never be regained in ones lifetime.

I’m beginning to think there are demographics at play that aren’t considered. Such as immigration funneling into specific areas, provincial migration, urbanization, etc.

When are all the boomers going to kick the bucket?”
—————————————————
Not just boomers kicking the bucket that needs to be paid attention to. Obviously, they are going to croak in larger numbers than any generation in human history, thus providing downwards pressure on housing demand for the foreseeable future (my estimate it starts being noticeable in 2019-2020). However, more importantly, IMO, is to look at the size of the millennial generation (in Van) compared to the Generation Z. In 5 years, the majority of millennials will likely be homeowners of some sort and thus be less likely to be buying a new home (particularly since higher rates will likely make it hard for a lot of them to trade up). And then the future wave of home buyers (Gen Z) is much smaller than today’s wave (and the last 5 years). Chances are, if trends continue, Gen Z will have even more competition for well-paying jobs, have more student debt and will likely start their careers later in life, and thus families later too.

So yes, demographics are in play… more than most people realize.

#158 bdy sktrn on 12.14.15 at 9:36 pm

Hotels will be expected to provide up to three meals a day. It states the government will reimburse up to $15 per person for breakfast, $16 for lunch and $30 for dinner.

http://www.vancouversun.com/news/metro/open+vancouver+jericho+barracks+syrian+refugees+ottawa+urged/11589391/story.html

————————
60/day per person

fam of 4 – 240/day or $7200/mo just for food.

good thing there are millions of families who spend $7200/year for food to pay for this!

86,400/year for meals for one family. love that govt efficiency.

#159 Mark on 12.14.15 at 9:39 pm

The haters have really come out on the comment section today. Knowing nothing about the BF other than the sparse details Brianna dishes on him, some of you are quick to judge.

Well put. I’ve really had to bite my tongue tonight because some of the comments here are rather disgusting. She contacted Garth for financial advice, not for random people on the Internet to make wild and outlandish assumptions about her relationship, her boyfriend, or even her fertility without even knowing them personally other than the cursive minor details provided by Garth.

Shame on y’all who stooped to that level. The issue here, first and foremost, is whether or not Toronto RE, particularly condos, are a good investment relative to renting. The answer is clearly a resounding “no”, not even considering those other ‘considerations’.

#160 Toronto Steve on 12.14.15 at 9:42 pm

Hi Garth and blog dogs. Do you have any comments on this interesting article from the Bank of England?
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

Is the Canadian equivalent of the second figure (lending by sector) at this link available anywhere? It would also be interesting to see this for the US before and after the GFC.
http://positivemoney.org/how-money-works/how-much-money-have-banks-created/

#161 No Expert But I See Bri's Future on 12.14.15 at 9:44 pm

Here’s your future Brianna. I see you sitting on the couch of a rented apartment wondering why he left, why you had to sell the house at a loss and most of all why he has half of what was left over when you put more in.

#162 Not Tonight Honey on 12.14.15 at 9:46 pm

#142 JamesA on 12.14.15 at 9:07 pm
NTH,

I did not mention gender in my post. But, yeah, there are several theories. I have heard the age gap theory. Now there is an antidepressant medication theory. We all know the eggs are all issued at birth thing.
The spirit of my post was meant to be: don’t wait till its too late. I am speaking from experience.
apologies for my tone (I am probably on the spectrum) I always manage to come across as a jerk.

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

JamesA, no worries I didn’t find your tone unpleasant. Autism is a subject matter near & dear to my heart so I just wished to clarify for readers.
Take care!
NTH

#163 Totalchaos on 12.14.15 at 9:46 pm

Brianna,

A) draw up a good budget. You should have more savings with your salary and age. Find out where your money is going.

B) develop an investment plan that doesn’t involve real estate.

C) lose the bf. He is way too old to need his parents for financial support. 40 with no savings? It doesn’t matter how good looking/kind/funny/thoughtful he is, this is a high risk relationship. #1 reason for divorce is financial trouble

D) if you want a baby, have one. You don’t need a man to have a baby, just a donor. You earn more than most families. If you think its too hard to be a single parent, imagine how much harder it is to parent in a bad marriage or as a divorced single parent shuttling the kid between households.

#164 gut check on 12.14.15 at 9:56 pm

@ #117 Smoking Man on 12.14.15 at 8:15 pm

I’m not as enthused about the Donald as you are, but otherwise great post.

“Society can never evolve, invent, improve, without a strong individual spirit. And lots of them.” – Smoking Man

#165 Tiger 1960 on 12.14.15 at 9:57 pm

81 Bryan !
Are you stupid, and a nufie!

#166 Herb on 12.14.15 at 9:58 pm

By coincidence, to-day’s “The Exchange” had a segment in which the head of the Canadian Bankers Association expressed the CBA’s concern about financial illiteracy.

They are so concerned they are funding a couple of projects to study it and to develop “metrics” to measure the results of their efforts to reduce it, and should have metrics in about a year. Apparently, knowledgeable customers are good customers, and banks are not interested in “transactions”, but in client “relationships”.

Bruce got in some good hits about credit card debt, mutual fund charges, and the conflict of interest in banks trying to reduce financial illiteracy, but the banker was unflappable, protecting himself with disingenuousness.

To-day’s edition of “The Exchange” should be on the CBC website in a couple of days. You can watch it, consider what we have discussed on Greater Fool for a number of years, and – wind up a “socialist.”

#167 MF on 12.14.15 at 9:59 pm

#144 BG on 12.14.15 at 9:10 pm

Yeah I definitely chose a bad time. Just how it goes I guess. I studied and learned for a few years before jumping because I was so scared and intimidated. I remember reading in Millionaire Teacher that 1 in 3 years there is a chance you will not make any money in the markets, so I was a little prepared. I also learned trying to time markets is impossible.

So it goes. Like I have said a few times, and we have read from people with more experience than us, there is always a learning curve!

For what it’s worth, My lessons learned so far:

-balance like Garth recommends
-trends are your friend
-rebalance with steely determination and ignore emotion
-buy when everything is red if you have excess cash
-don’t panic when you are down thousands (thanks to Retired Boomer and HD who provided guidance).

Next year should be better (light on maple though lol)

MF

#168 No Debt on 12.14.15 at 10:01 pm

“Oops. I failed to answer Bri’s breathless question. Feel free.”

What’s the point? It’s not like she’ll listen anyway.

#169 Bram on 12.14.15 at 10:04 pm

Interestingly, the price of a SFH in Vancouver has actually been flat for the last 15 yrs. Who would have thought?
(caveat: when paid for with gold coins)

http://www.chpc.biz/millionaire-metric.html

#170 Smoking Man on 12.14.15 at 10:05 pm

Brianna, buy….buy two..

The herd is gone giggly, climate change victory. Party like it’s 1939..

The mind of the herd, the newlly scholled is the market, till it’s not..

If you fks could get one second of the electrons going off in my mind you would be set for life.

#171 Retired Boomer WI on 12.14.15 at 10:09 pm

#73 #85 MF

My young investing friend, you sound discouraged. Yes, it has been a ‘crap season’ this year for most of us.

This is temporary, unless you go stupid, and sell vowing “never again” until the markets recover…. then you buy too high, and don’t make any money.

The SMART money, and if I recall you are 30 something, so have at least another lifetime to continue getting SMARTER. When stuff is off 7% I don’t get too excited, when it’s off 27% or 47%… if I haven’t suffered the fatal coronary, I BUY, BUY, BUY!!!!

Actually, this is the typical “Yellin” story. We are a day, out so away from the next FED meeting where they might do something. Nothing earth shattering, I can guarantee.
Rates might go up .25% t save ‘face’ if it does go up. It is already priced in, why do you think bonds dropped, preferred, too-today when the US market was up over 100 points.

I saw almost 2 grand in value evaporate today, a day when the market here was up over a 100 pts? WTF he says… bonds & preferred’s….

Last week was bloody as well, that was the stock follies, as here as goes oil so goes the bulk…

I still think Janet will say “no” on the rate goose…

My point, this is temporary… no matter how shitty it gets.
It is a fantastic time to acquire more when it is “on sale”.

Sounds great, tough to do actually. When I look at 2015, it has NOT been a magnificent year, and no I am, not ‘up’ year to date overall, but I do have those areas that make me smile, and wonder why didn’t I buy more of THAT?

Because I am balanced… well, I try to be, and at 58/38 with a wee bit of cash I am anxious, but hardly destitute, or desperate.

RB

#172 Other Brother Darryl on 12.14.15 at 10:10 pm

Just listened to Judy Garland (on my xmas cd) singing “Have Yourself a Merry Little Christmas”… For some reason sounds like Janet Yellen. Great lyrics.

https://youtu.be/jxxTHzERTsk

#173 salonist on 12.14.15 at 10:11 pm

rebalance from oakville
head off to paris, ontario
the confluence of the nith and grand rivers
the paris bakery,early
maple and bacon donuts, harleys murmuring
throttles of exhaust,and a bite of ambrosia, rebalanced.
entitled
https://www.youtube.com/watch?v=w_PfwVNmckc

#174 Milla on 12.14.15 at 10:13 pm

Guy with a child and still living with parents…. If she would like to do charity there are a better way to do so and for those who need it more. The best thing Brianna can have from the guy is her own child but under constant strain to support the lazy husband, his child and probably his parents. Well, this job is unbearable and the faster she gets it the better for her. Do not buy home, have freedom, you will need it when you deside to run from that guy.

#175 economictsunami on 12.14.15 at 10:16 pm

Exponentially more important (to the economy) then the first rate rise (in almost a decade) would be the much more telling pace of future raises.

Why Very Low Interest Rates May Stick Around:

http://www.nytimes.com/2015/12/15/upshot/why-very-low-interest-rates-may-stick-around.html?ref=business&_r=0

3 Charts The Fed Should Consider:

http://realinvestmentadvice.com/3-charts-the-fed-should-consider/

When your balance sheet (plus ZIRP) drives asset prices, what does that say about the corresponding economic stability of data generated by said action, when you decide to tighten?…

#176 ozy -stop the nonsense, PLEaaaaSE on 12.14.15 at 10:26 pm

stop the nonsense, PLEaaaaSE

when houses now sell 10-15-20-35-50% over asking just ’cause the LIBs thought they know real-estate – it’s shame to sell hopes to the unsuspecting masses …

any MAJOR change like this, should have been announced 1 year before taking effect. WHO THE HELL RUNS THIS COUNTRY …. it seems like a bandwagon rolling by itself…. disconnected from any ENGINE

BRACE FOR IMPACT – CANADA!!

#177 ruh-roh on 12.14.15 at 10:30 pm

“It has come to light that institutions have been, I would say inadvertently, making mortgages to people whose income has been falsified,” – Canada’s banking and insurance regulator highlighted fraudulent mortgage practices as a key threat to the country’s financial system, prompting consultations with lenders over how to ensure that the system can withstand a severe housing market downturn.

#178 Bytor the Snow Dog on 12.14.15 at 10:40 pm

I think Garth-o played the ole “switch the genders game” on this one.

The sentiment would be totally different if “Brianna” was “Brian” and was dating a forty year old single mom earning 40k. He should man up and marry that….

PS- If you have the money in the bank then pay off the student loan now.

#179 Fine wild roasted gonads on 12.14.15 at 10:43 pm

#167 Smoking Man on 12.14.15 at 10:05 pm

Brianna, buy….buy two..

The herd is gone giggly, climate change victory. Party like it’s 1939..

The mind of the herd, the newlly scholled is the market, till it’s not..

If you fks could get one second of the electrons going off in my mind you would be set for life.
————-
Still banking on ww3 it seems!

#180 Herf on 12.14.15 at 10:56 pm

#131 crossbordershopper

“the guy should knock up brianna, asap. the goal of every women is to support a man.”

I don’t know about it being “every woman’s goal”, but given her higher income, good job, etc., compared to the BF’s, it is a very real possibility that she could end up having to support him and his kid, if they move in together and subsequently break-up down the road. If they have a kid together, then he’ll have really attached a ball-and-chain to her and her finances.

#181 Bobs ur uncle on 12.14.15 at 10:57 pm

MF

Think about you would’ve felt had you had to watch the sea of red in 2008. It wasn’t pretty. The only thing to do is step away from the headlines and the brokerage statements. Don’t focus on tallying up your daily losses. Otherwise you’re liable to overthink it and make bad decisions. If you have a plan and stick to it, you’ll be fine. The daily ups and downs are just a sideshow. Sucks that the losses happened right away, but it could be far worse.

#182 Kenchie on 12.14.15 at 10:57 pm

People in Canada complain when the Liberals say they are willing to run a $10 billion a year deficit (0.5% of GDP). Meanwhile, in Saudi Arabia, they’re expected to run close to a 20% of GDP deficit this year…

“Opec revenues have collapsed from $1.2 trillion a year in 2012 to nearer $400bn next year, if prices stay this low.” LOL!

http://www.telegraph.co.uk/finance/economics/12050437/Emergency-Opec-meeting-aired-as-Russia-braces-for-sub-30-oil.html

#183 Herf on 12.14.15 at 10:59 pm

#134 Parents still matter

“P.S. – You’ve obviously done little to consider the damage that could be done to the child if the relationship is lousy and/or fails outright. This is a complex situation that you are trying to oversimplify.”

Well said!

#184 Kilt on 12.14.15 at 11:01 pm

Rig counts worse than 2009.

http://www.caodc.ca/rig-counts-drilling-dr-month

Kilt

#185 batt519 on 12.14.15 at 11:02 pm

asdf

He’s in Myrtle Beach with his clubs.

#186 james on 12.14.15 at 11:02 pm

Spare us your lustful glances at the Donald, Smoking Man.

You are such an emasculated little man-turd in your so very predictable embrace once again tonight of lunatic far right conspiracy nonsense.

You are so utterly schooled, and by the dumbest teachers going.

You are so boring, so conventional, so predictable, it’s a joke.

Guess that’s your standard.

What you try like a thumb-sucking baby in your conspiracy blanket to project onto liberals is really just the image of your own idiocy.

Sadly, you’re just not bright enough to get that……

#187 Aggregator on 12.14.15 at 11:11 pm

Anyone remember what I said about the presale market imploding?

Alberta Buidling Permits

That's what happens when developers dictate government operations. Too many pending permits that were moved to the bottom of the pile (in favor of applicants and to tighten new supply, driving prices higher), but already sold as futures contracts!

Now you've got investors holding condo contracts for 2-6 years maturity (delivery on occupancy), while prices and sales are falling, leaving investors negative in equity and developers with supply they can't sell. Not to mention a falling dollar which will certainly raise development costs.

If oil doesn't move up, the fate of Calgary is doomed. Migrants are already fleeing in droves.

#188 Jules on 12.14.15 at 11:13 pm

Some of the people sending these emails must be making this stuff up…the stories, subject one included, sound absolutely nuts.

#189 Julie on 12.14.15 at 11:16 pm

It’s a sad comment on spending habits when my 17 yr old has more savings than the average Canadian! Garth, what’s the first account he should get when he turns 18, a TFSA?

#190 Investx on 12.14.15 at 11:19 pm

“#175 Bytor the Snow Dog

The sentiment would be totally different if “Brianna” was “Brian” and was dating a forty year old single mom earning 40k. ”
—————————–

Yup.

#191 Why Why Jay on 12.14.15 at 11:32 pm

@#123 VICTORIA TEA PARTY

“This means that our “Banks of Mom and Dad’, designed to bail out Millennials and their ilk, are losing equity like crazy and may be tapped-out soon…”

Hate to break it to you, but BoM is doing fine. Simply a matter of taking out a HELOC on their mortgage free home (which currently worth close to a million). As long as the kid pays at least the interest fees, they are happy. The government job pension is steady and provides all they need to maintain their lifestyle. If the kid doesn’t pay back the principal it’ll just come out of his/her inheritance.

Sure, their “investments” have taking a bit of a dive, but they never needed those to retire. Might just sell them at a loss to upgrade one of the cars, or kitchen, or take another cruise or winter somewhere a little nicer than usual… or just leave them sitting there. Always good to have some extra money around so the kids don’t cheap out and put you in a bottom tier home when it comes time.

#192 Millmech on 12.14.15 at 11:35 pm

#175 Bytor The Snowdog,
“Man Up” that has got to be the most destructive phrase ever invented for use against men other than “want to see something funny,hold my beer”

#193 bb on 12.14.15 at 11:41 pm

#145 joblo on 12.14.15 at 9:11 pm

This could be the best piece of love and financial advice I’ve read so far. No need to ditch the BF if she loves him unconditionally. Love conquers all!

#194 pwn3d on 12.14.15 at 11:44 pm

#147 Leo Trollstoy on 12.14.15 at 9:14 pm
It sure looks like the GTA and Vancouver have defied gravity for as long as humanly possible, but the headwinds facing Real Estate in 2016 are significant.

I agree. It seems that single family detached, townhomes and condos in Vancouver and Toronto continue to increase in price despite the sales mix and nobody knows how long this madness can continue.

http://www.chpc.biz/compare-toronto–vancouver.html

The data is pretty clear that this has been going on for around 15 years. For our collective sake this better end soon. The hangover from this ridiculous price movement will be epic.

I have no idea how prices continue to rise. I just want it to end already.
—————————
Don’t think it will be 2016, I expect more healthy gains. That chart is interesting as there is a couple points where a YVR detached home lost value quickly, and had someone listened to the doomers or jackasses talking about sales mix would have lost a ton of dough. Those who stuck it out are making a killing.

Also YYZ follows seasonality like a heartbeat and slow and steady up. It does not really look like what your typical bubble would look like.

#195 Mark on 12.14.15 at 11:49 pm

“Now you’ve got investors holding condo contracts for 2-6 years maturity (delivery on occupancy), while prices and sales are falling, leaving investors negative in equity and developers with supply they can’t sell. Not to mention a falling dollar which will certainly raise development costs.”

Development costs should be falling on account of falling costs of labour, and falling commodity prices will inevitably push the cost of delivering supply to market down. Against the existing supply, and a weakening demand side (on account of credit exhaustion), and you have perfect conditions for a dramatic fall in RE prices.

Since there’s still a lot of capital committed to housing supply chains, supply is likely to remain robust for a considerable period.

US housing vendors can deliver supply profitably for less than half the price of Canadian housing. So that gives you the sort of idea of just how much costs can come down through restructuring and rationalization of costs before housing vendors start to run into profitability problem.

For those who committed to debt at extremities of prices, well, that’s going to be awfully painful debt to repay, especially in an environment of price deflation and increasing risk premia.

#196 genbizx on 12.14.15 at 11:51 pm

Granted, this is a blog largely about money so that is the topic of conversation but sheesh… i get the feeling that not having money is the worst thing that could happen to most on here…ever go to a place where the people are dirt poor but they just seem happier? not that they don’t have struggles but somehow they haven’t hitched themselves to our first world idea that, without a house, a cool career and on and on, life would just be unbearable…i have, and i remember thinking maybe we chase that financial carrot a little too much and it never really does for us what we think it will…. anyway….just waxing philosophical…

#197 MF on 12.14.15 at 11:51 pm

#168 Retired Boomer WI on 12.14.15 at 10:09 pm

RB,

Thank you for the words of encouragement as always

Yeah I am a little down you could say. Down -but not out. Like others have said here, this is the only game in town and being in the red is a part of it. In August, at one point I was down about 20% and admittedly freaked out. Even called my parents (yup I said it) to complain. “Just relax it will go back up” my dad said. He was right. There seemed to be no end..but I added to my Vanguard VV fund right in the midst of it all, and am still nicely in the green on that one trade. Lesson learned. That trade is the one that makes me smile.

I’m mostly balanced. 10% I buy individual stocks and have done okay doing that… so far. The rest is in Garth mode. If Yellen pulls the trigger, and I think this time she will, I am going in on CPD with cash reserves. We’ll see how it goes.

MF

#198 Dean on 12.14.15 at 11:54 pm

Used to think some of the financial advice offered in the steerage section was wacko……then I read some of the advice about relationships…..Jesus….

#199 Bottoms_Up on 12.15.15 at 12:17 am

#142 JamesA on 12.14.15 at 9:07 pm
———————————
It is not an anti-depressant “theory”. It is in fact the strongest evidence to date to suggest either the medication, or depression, (or something else associated with depressed people) is associated with an increased incidence of autism. As it is a spectrum disorder and involves many genes, it likely correlates with a bunch of things.

#200 Bottoms_Up on 12.15.15 at 12:23 am

#90 nonplused on 12.14.15 at 7:40 pm
———————————–
Why would you say something as assinine as that? I personally know 3 married or common law couples where this income disparity is true.

#201 BS on 12.15.15 at 12:42 am

Samthe Sham on 12.14.15 at 7:54 pm
“As a group( the millennials), that bunch is headed for financial perdition”.

What do you expect from a group that gets hysterical about Halloween costumes, requires “trigger warnings” for everything and requires the world to supply them with “safe spaces”. We have created a generation that has been spoiled, coddled and “infantasized”. God help them!

LOL, in the real world you don’t get a trophy for showing up. The Millennials are shocked once they get out of their parents basement and government controlled institutions and realize someone expects them to produce something. Just being ‘special’ is not enough anymore. Back to their parents basement they go waiting for the job worth doing.

#202 Fuzzy Camel on 12.15.15 at 12:44 am

Yellen will NOT raise rates on Dec 16th, 2015.
Guaranteed 100%, I stake my fuzzy rep on it.

I also guarantee on or before Dec 31, 2015, there will be a bank holiday, and your savings, and way of life will forever change.

Behold the prophecy of the Fuzzy Camel!
I will be proven correct in 1 day, then again in 10 days. You will see, the powers that be, have quite a Christmas in store for you all this year! ISIS crashes Christmas, then WW3 is off to a running start!

#203 koala on 12.15.15 at 12:56 am

I married a guy like the BF of today a few years ago, he made 60k and has a daughter, lived at his sisters and paid rent, I was making double that at the time. I also just bought a condo not long before dating him.

Things turned out OK, we are still happily together, he turned out to be a good guy, I think I didn’t really know that when I married him, that sounds stupid, but there were lots of things I never considered when I got married, but turns out we are very compatible.

Family did not like him much, but now they seem to like him.

Brianna, hope you are right about the guy, probably more important than the condo decision.

#204 Fubared on 12.15.15 at 1:00 am

You guys are hilarious. One of my oldest male friends mid 30s lives with parents on welfare thinking he can be a musician. Obese posts all day on Facebook about changing the world. Bri was told she could have it all just like him. Bad boy she can change like the Ryan Gosling movie, but still have the white picket lifestyle expectations. I make money selling women like this trinkets they wear once. Society socially conditioned these people this way so they are predictable and exploitable. There’s no saving them only selling them stuff. Maybe I’m reading too much Smoking Man.

#205 Entitled ...really ? on 12.15.15 at 1:06 am

Entitled to own a shitty condo in a shitty frozen tundra….really.
I guess its better to pay someone else’s mortgage for the rest of your shitty life with here’s your eviction notice kind of life…..MORON

#206 Leo Trollstoy on 12.15.15 at 1:42 am

At least Brianna isn’t thinking of investing in something even more worthless like gold.

http://www.cnbc.com/id/103239135

#207 emancipation on 12.15.15 at 2:33 am

#177 Herf on 12.14.15 at 10:56 pm

#131 crossbordershopper

“the guy should knock up brianna, asap. the goal of every women is to support a man.”

I don’t know about it being “every woman’s goal”, but given her higher income, good job, etc., compared to the BF’s, it is a very real possibility that she could end up having to support him and his kid, if they move in together and subsequently break-up down the road. If they have a kid together, then he’ll have really attached a ball-and-chain to her and her finances.

—-

Maybe we have reached the age of emancipation.

#208 Official CMHC stats on 12.15.15 at 2:37 am

Metro Vancouver stats released today state that 6 out of every 100 insured mortgages are greater than 600K.

Guess we were all wrong thinking people bought $800K homes with 5% down.

#209 Who cares... on 12.15.15 at 2:37 am

40 years of life littered with dumb mistakes fiscally and emotionally and read CLOSELY how she writes – does anybody HERE REALLY think they are going to change HER mind?

DREAM ON people.

She just wants to read that her plan is golden:

Bri, your plan is golden.

Plus, it has unicorn’s written all over it.

#210 Smoking Man's Old Man on 12.15.15 at 2:41 am

#83 Herf

Good luck with Common Law being treated different than marriage in Ontario.

I went through a Common Law split and believe me the other side will go for the same support/property rights as if you were married. Even entitled to half your pension for the years you co-habitated. Ended up paying $50K in lawyers fees

I recommend following the Freedom First relationship guidelines. Treat them well, enjoy each others company, but never move in together.

It keeps everybody honest in the relationship, don’t have to put up with game playing, or being cut off, Mother in Laws, or any of the crap.

Not bitter, just smarter now… :)

#211 Chris in Nanaimo on 12.15.15 at 3:03 am

#127 Trojan Horse

Agreed…..if i had to guess, the ‘loser’ boyfriend got financially castrated by an ex, (given he has a son), and Hence can only afford to live with parents….and/or lost a good paying job, and has to make do with shitty 40k/yr replacement.

Or he could just be a loser….

#212 family beagle on 12.15.15 at 5:11 am

Re #76, Move in with boyfriend and have baby there. After a few visits, your parents will gladly front the downy for a house. In the meantime, pay off the student loan pronto.

#213 Lafayette on 12.15.15 at 5:28 am

Isn’t this dog « Napoleon » from Disney’s animated feature film The AristoCats?

#214 nubbers on 12.15.15 at 5:58 am

If Brianna buys property now, she will soon transform from being a catch to being a greatest fool.

#215 Snowman on 12.15.15 at 6:35 am

And did I mention that anyone making a hundred grand who’s almost 40 with a net worth this size is a financial cripple already?

I know someone very well who at late 30’s had a net worth of -40K (yes, net worth was 40K of debt). Caused by spotty self-employment, and covering employment gaps with expensive credit.

By late 40’s, has about 70K net worth. Better, but not great.
And is looking to sink 50K into a condo.

A 65K salary may give the impression of “i’m doing okay”, but the overall prognosis is Kraft Dinner at 65.

Its an expensive world out there, and we live in an unbalanced world. Provided we live long enough, not all will get to a comfortable retirement financially.

#216 the Jaguar on 12.15.15 at 7:36 am

#184 Aggregator///////Don’t leave me hanging. How is this accomplished? Does someone get paid off to put the permit to the bottom of the pile?

That’s what happens when developers dictate government operations. Too many pending permits that were moved to the bottom of the pile (in favor of applicants and to tighten new supply, driving prices higher), but already sold as futures contracts

#217 fancy_pants on 12.15.15 at 7:47 am

… being stuck in a lease is the least of your risks

#218 gut check on 12.15.15 at 8:05 am

Much of the comment section qualifies as an expose on the uninformed or jaded male psyche.

The stuff about Brianna’s reproductive health is funny, the assumptions about the man are cringe-worthy, and the rest is kind of sad.

Brianna, I’m so sorry you had to go through this! But seriously, don’t buy a condo. it’s like living in an apartment but with harassment, costs and meetings baked into the cake.

#219 BG on 12.15.15 at 8:40 am

#214 gut check on 12.15.15 at 8:05 am
Much of the comment section qualifies as an expose on the uninformed or jaded male psyche.
——————————————————————

Agreed.
It’s actually pathetic the level of despise displayed here toward that guy, solely based on a few numbers.

Decent human beings don’t put down people like that just because they’re in a bad place financially.
We don’t now his story.

#220 Guy Fawkes on 12.15.15 at 9:06 am

#162 Tiger 1960
81 Bryan !
Are you stupid, and a nufie!

Tiger, it helps to be intelligent when trying to insult someone.
So let a friend from the Rock share a little knowledge with you today. You can feel good about learning something from a Newfie!

#221 Karma on 12.15.15 at 9:06 am

Lol, this is a must read for all you doomers out there.

“A Pessimist’s Guide to the World in 2016”

http://www.bloomberg.com/graphics/pessimists-guide-to-2016/

#222 Bytor the Snow Dog on 12.15.15 at 9:08 am

@198 BS- Those “special” ones usually end up in HR where they screw up life for the rest of us.

#223 saskatoon on 12.15.15 at 9:15 am

#313 gut check

yes, single moms.

most (though not all, obviously) are highly dependent on the state.

generally speaking, this is a result of poor decision making:

either:

1. the mom didn’t select a good man to have kids with; or,

2. the mom’s behavior drove a good, dependable man away

to make up for her bad decision-making, the woman looks to the state:

to take from those productive individuals (mostly strange men) through governmental initiation of force.

this occurs in a variety of ways: state schools, subsidized daycare, state employment, subsidized tuition, state welfare, child support, alimony…etc., etc..

here’s a video summarizing the statistical evidence:

https://www.youtube.com/watch?v=o1xf78EltKM

#224 CentreWing on 12.15.15 at 9:20 am

#56 – Good idea, but she doesn’t have to move North. She could move South as well. Real estate prices in areas south and west of the GTA/Golden Horseshoe are completely different. It’s like another world here!

And yes, let’s stop assuming we know this guy’s situation simply because of where he lives and his income…. It’s like an episode of the View in here.

#225 CHERRY BLOSSOM on 12.15.15 at 9:20 am

You have to rent. If you buy and live with your BF for a year he will then own half of the condo by rights. So he could say he wants you to leave the condo and he and his son stay. Be Careful

#226 pinstripe on 12.15.15 at 9:25 am

More on how the AB Pc and Fed CPC policies of yesteryear are at work.

http://www.cbc.ca/news/canada/edmonton/packaged-meat-now-a-hot-commodity-1.3365349

#227 Smoking Man on 12.15.15 at 9:31 am

#183 james on 12.14.15 at 11:02 pm
Spare us your lustful glances at the Donald, Smoking Man.

You are such an emasculated little man-turd in your so very predictable embrace once again tonight of lunatic far right conspiracy nonsense.

You are so utterly schooled, and by the dumbest teachers going.

You are so boring, so conventional, so predictable, it’s a joke.

Guess that’s your standard.

What you try like a thumb-sucking baby in your conspiracy blanket to project onto liberals is really just the image of your own idiocy.

Sadly, you’re just not bright enough to get that……
……………………………

So with that, Guess you won’t be lining up to buy my book then.

#228 The real Kip on 12.15.15 at 9:35 am

Dump the boyfriend Bri, everything else will work out fine. If you think real estate is a bad investment (it’s not), try divorce. Ask me how I know this.

#229 Ronaldo on 12.15.15 at 9:35 am

#203 Leo Trollstoy on 12.15.15 at 1:42 am

”At least Brianna isn’t thinking of investing in something even more worthless like gold.

http://www.cnbc.com/id/103239135

Actually Leo, had Brianna purchased gold on January 1st, 2015 she would be up 7.2% on her investment. Silver is up 3.9%. Of course that would be in Canadian dollars. Had she purchased U.S. dollars, she would be up 18% on her investment. The precious metals are priced in USD’s therefore in almost any other currency except USD’s, the precious metals are ahead. This is the reason that every balanced and diversified portfolio should have a weighting in precious metals. Insurance. What you don’t receive in dividends is the premium you pay for the insurance. It’s not that difficult to figure. Gold in Cdn dollars right now is $1460.00 and silver is close to $19.00. How are your ETF’s doing?

You need to bone up on your knowlege of the precious metals markets.

#230 Ronaldo on 12.15.15 at 9:48 am

#193 genbizx on 12.14.15 at 11:51 pm

”…i have, and i remember thinking maybe we chase that financial carrot a little too much and it never really does for us what we think it will…. anyway….just waxing philosophical…”

You are quite right. We can spend our entire life chasing the almighty buck and one day realize that maybe we missed out on life itself. It’s not all about money. Life needs to be balanced as well. Being rich does not necessarily guarantee happiness.

#231 Ted Hatton on 12.15.15 at 9:53 am

Brianna,

This may not be what you wanted to hear, but I will say it nonetheless.

You need to get your ducks in a row. It stinks, but you have to do the things you “have” to do before you get to do the things you “want” to do.

1) Others have mentioned this, but get rid of the student loan. 99+% of the time having a loan is a losing proposition. Not slighting you, but I doubt that you are in the position of the 1%. This should be your number one consideration. Not pay off most, pay off ALL of it. Seriously, don’t even think about buying a house until the level reaches zero.

I know that Garth suggests that people keep loans if they are investing. I get where he is coming from, but I respectfully disagree with this idea for a large part of the population, although it works well for others. But I think that Garth would suggest that having outstanding student loans is a really bad idea if you are considering buying a house.

2) The boyfriend thing… Formal marriage or common law is a serious thing. My wife knows that I will move heaven and earth to get what she needs (needs, not wants, but even on the wants, I go seriously out of my way for that). She does the same for me too. Forget words, measure actions. Ask others of their opinions of them too.

I may come across as sexist here, but it appears that women in particular view relationships through seriously romance novel coloured glasses. You need to step back and do a serious assessment of your future with him.

He’s sponging off his parents still? There should be alarm bells going off in your head over this. Both spouses should be providers, in money, time, and work. Is he a provider? Doesn’t sound like it to me.

Forget the RomCom crap of the existence of “the one” – sorry, it doesn’t work that way. A good potential mate can be half of a couple with many other good potential mates. A bad one will always be a bad one.

Don’t fall into the “if not him, then who?” thing. My advice would be “somebody better”.

You don’t need your parents approval, but if they don’t approve of him, then you should carefully consider their points. Honestly, from the little information provided, I side with them. You are better off alone than with him. I’d be perfectly happy to wrong, but I doubt that I am.

3) Do a serious, complete analysis of the costs of renting versus buying. Don’t use an analysis done by anyone else. Everybody has an agenda and will taint their advice with their bias.

Assuming that your parents have owned a house, put your analysis past them. Did you forget any costs? Land transfer tax? Lawyer costs? Insurance? Property taxes? Mortgage interest (count higher rates than today’s, say 6%)? Maintenance (about 1% per year). Water/sewer fees? Septic tank maintenance? Grass cutting? Snow clearing? Real estate commission when you sell? HST on the commission? The list is long, and I can pretty well guarantee that you will leave out a bunch.

Don’t assume that house prices will go up 5% a year like the realtors like to do. PRICES CANNOT INCREASE FASTER THAN INFLATION AND/OR WAGES IN THE LONG TERM. There is no such thing as being “priced out forever” – if nobody can buy, then prices will fall, Econ 101.

If you can’t do this analysis yourself, then I suggest very strongly that you not buy.

I own a house, but I have done the analysis. Renting beats buying hands down right now (it’s not even close). I own because I paid cash, and it is a reasonable amount of my net worth (under 30%). We also rented for 15 years while we got our financial house in order.

4) Never, ever, ever base a decision on what a realtor tells you. There are lots of good ones, and lots of not so good ones. But every single one of them only makes money if you buy, not if you continue to rent. This will taint their opinions. Same for bankers.

And if anyone tells you “renting is throwing away money”, or “you are just paying your landlord’s mortgage”, then run, don’t walk away. These two chestnuts are quite provably wrong, yet are thrown about like solid truths all the time.

5) Any time that a decision (like marrying or buying a house) puts you in a position where it is inconvenient or difficult to get out of it, then you had better make pretty darned sure that it is the right decision. This is not the time for “what the heck, let’s do it” moments.

The fact that you are asking tells me that you already know the right answer here. It is entirely up to you to do the right thing.

Good luck.

#232 DisgustMadeMePost on 12.15.15 at 9:57 am

Now, if Brianna was Freedom First, what would she do in this situation …

#233 cramar on 12.15.15 at 10:03 am

#23 Frank on 12.14.15 at 5:57 pm

So if I’m the “smart” millenial at 31 who makes north of 100K and has 250K savings why am I losing?

While the last 5 years have been kind in the market this year has been a dud. My friends have a similar net work thanks to real estate appreciation gains (their only investment) over the last 5 years except they live in nicer places.

We’re in the same place except my balanced portfolio offers no comfort. I gotta say doing “the smart thing” doesn’t seem rewarding. I totally understand why the majority acts the way they do.

———————

Your comfort lies in the future. Unfortunately most Millenials (and humans in general) do not think long term. It is the age of instant gratification. Everyone wants results NOW! You have a quarter mill at 31, which is really good. I’d hardly call it losing.

You need to think about where you will be at 41, 51, 61, and 71. In the direction you are going, what will you have at these future milestones? I don’t think your friends are going to have anywhere near your net worth 10 years from now let alone at retirement.

You are heading in the right direction. Just keep on going. Don’t give up. And don’t give in to the dark side of short-term thinking.

#234 James #2 on 12.15.15 at 10:11 am

#223 Smoking Man on 12.15.15 at 9:31 am

#183 james on 12.14.15 at 11:02 pm
Spare us your lustful glances at the Donald, Smoking Man.

You are such an emasculated little man-turd in your so very predictable embrace once again tonight of lunatic far right conspiracy nonsense.

You are so utterly schooled, and by the dumbest teachers going.

You are so boring, so conventional, so predictable, it’s a joke.

Guess that’s your standard.

What you try like a thumb-sucking baby in your conspiracy blanket to project onto liberals is really just the image of your own idiocy.

Sadly, you’re just not bright enough to get that……
……………………………

So with that, Guess you won’t be lining up to buy my book then.
*****************************************
Don’t worry he can get it at any stall in a restroom. It will be hanging on the wall in roll form.

#235 Bottoms_Up on 12.15.15 at 10:11 am

#199 Fuzzy Camel on 12.15.15 at 12:44 am
———————————-
What has been the closest date to Xmas that they have raised rates? Sounds like a good recipe to quash spending during the biggest holiday of the year. I also believe Garth will be proven wrong tomorrow.

#236 Karma on 12.15.15 at 10:21 am

Some all important historical context:

“Why very low interest rates may stick around”

http://www.nytimes.com/2015/12/15/upshot/why-very-low-interest-rates-may-stick-around.html?_r=0

#237 Dups on 12.15.15 at 10:38 am

Dump him. You clearly are wasting your time with this guy. He has baggage and makes less money than her and still lives with his parents as a parent.wow. Something is wrong here. What is in it for her. I have a sister that is in a similar relationship with a similar loser, and it is stressing our whole family out.
Bottom line: If your family is not happy with him, you will not be happy at the end.

#238 gut check on 12.15.15 at 10:43 am

#219 saskatoon on 12.15.15 at 9:15 am

someone wants a whoopin’
keep movin, Junior. You are not ready for this jelly.

#239 saskatoon on 12.15.15 at 10:54 am

#234 gut check

“someone wants a whoopin’ keep movin, Junior. You are not ready for this jelly.”

good argument.

#240 Smoking Man on 12.15.15 at 10:57 am

For you Freedom First.

Why Are Men Frightened of Marriage?

https://www.youtube.com/watch?v=Afu1Rwlggf8

#241 gut check on 12.15.15 at 10:58 am

James and James#2

go back to binge watching “How I Met Your Mother” … you can do it in the line up for the Star Wars movie. it’s coming out on Friday! Aren’t you *so* psyched??

#242 bdy sktrn on 12.15.15 at 11:06 am

#234 gut check on 12.15.15 at 10:43 am

#219 saskatoon on 12.15.15 at 9:15 am
#313 gut check

yes, single moms.

1. the mom didn’t select a good man to have kids with; or,

2. the mom’s behavior drove a good, dependable man away
—————————————-

which one happened to you?

#243 Doug in London on 12.15.15 at 11:15 am

Bri is in her late 30s, childless, makes $100,000, has saved $110,000 but has $65,000 in student loans you say? Then on top of that she is contemplating buying an overpriced house? Wow, no wonder a lot of people think financial education should be mandatory part of high school courses. Her finances are a disaster for someone her age. Seeing as we’ve been requested to answer Bri’s breathless question, I’ll do my part. First. pay down that student loan. Avoid buying a house, and instead put the money you have left over, as well as savings, into stuff that’s on sale now like preferred share ETFs and pipeline companies like ENB, TRP, and PPL. Even if the share price doesn’t rebound right away (I refuse to predict when, but it will eventually), you’re still being paid generously to wait it out.

Between now and Valentine’s Day, you’ll like see a wave of buying, as the ill-informed and hormonal masses rush to beat the new down payment requirements. Good news! It means you owners, who have racked up a big capital gain on paper, have a last chance to cash in your winning lottery ticket! Well, what are you waiting for?

#244 Estrella on 12.15.15 at 11:17 am

I think the title today should have been “complacency “.

Canadians have become complacent about have debt. That’s the only reason why someone would have 110k probably not making much in the bank and carry student debt which they could pay off.

Why?? Because everyone’s expected to have debt.

Pay off debt. Rent until you have a settled life. Dump lose boyfriend and get a real man.

I would like to share a video that totally dishes on multiculturalism. You know that Canadian holy grail. Germany is stressing that multiculturalism is a lie and that it merely develops as parallel cultures within a country. Oh dear. Were in for a rough time .http://www.theglobeandmail.com/news/news-video/video-multiculturalism-remains-a-lie-merkel/article27755135/?click=sf_globe

#245 JimH on 12.15.15 at 11:24 am

#225 Ronaldo on 12.15.15 at 9:35 am
responding to #203 Leo Trollstoy on 12.15.15 at 1:42 am

“Actually Leo, had Brianna purchased gold on January 1st, 2015 she would be up 7.2% on her investment. Silver is up 3.9%. Of course that would be in Canadian dollars. Had she purchased U.S. dollars, she would be up 18% on her investment… The precious metals are priced in USD’s therefore in almost any other currency except USD’s, the precious metals are ahead.”
=================================
Actually, Ronaldo it’s YOU who “need to bone up on your knowledge of the precious metals markets.”

She would have had a difficult time buying gold on January 1, 2015, but on January 2, she could have picked it up for $1183.50 US. It is currently trading at $1062.11 US.

Sliver was $15.75 US on January 2, 2015 and is currently trading at $13.74 US.

How you manage to come up with an 18% ROI in US dollars is beyond me, and I’m quite sure it’s beyond you!

BTW, gold was selling for $1395.88 CAD on January 2, 2015 and is currently trading at $1459.79 CAD for a return of $63.91 CAD or 4.6%, not the 7.2% you calculate.

Maybe this little visualization will help you out?
https://www.bullionvault.com/gold-price-chart.do

Priced in Euros, gold is also down for the year to date; priced in Yen it is really tanking; priced in GBPounds it is also way down for the year! In Australian dollars, it is pretty well flat!

Got any other great investment advice before you go broke???

#246 buy low on 12.15.15 at 11:28 am

Couldn’t wait any longer. Just bought some CPD at $11.90. Seems like a good entry point! Hope this sucker starts going up though. What are the long term prospects for CPD given the negative interest rate talks from the Finance Minister?

(a) There will be no negative rates. (b) The finance minister was not involved. (c) You bought smart. — Garth

#247 Smoking Man on 12.15.15 at 11:29 am

Since yesterday USDCAD has broken it’s tight correlation to OIL

BID/ASK spreads wide. Are you ready momentum traders.

FX Market betting on 100% certainty of a fed spike.

POLOZ speaks at 11:45

Wow!!! from here on in till EOD tomorrow if you got skin in the game, get ready for a wild roller costar ride.

Nerves of Steel….

#248 Conspiratard on 12.15.15 at 11:42 am

Los Angeles schools all shut down over terror threat today. 640,000 kids roaming the streets.

Meanwhile, 250 miles away, Trump preps a debate for tonight where he will stand up to terror and call Cruz and Rubio wimps.

Hope his operatives get back from LA in time to cheer him on ;)

Coincidence? I think not.

I think not.

#249 Leo Trollstoy on 12.15.15 at 12:02 pm

Ronaldo got schooled.

Gold sucks.

#250 Briana on 12.15.15 at 12:06 pm

Thanks for the advice and insight folks.

Garth,

Thanks for posting my situation, I enjoyed reading the feeback and advice from blog followers.

Not sure if there was some miscommunication in my original email for your advice– but I noted that I have almost paid off 65k in student loans (only a couple thousand left to go!!), at the same time I have saved over 110k. I would say not too bad for earning 100k for only the past few years, and generally 50k to 80k in years prior.

As for my love life, I have been dating my boyfriend for about 2 years. He has partial custody of his child (sees him every second wkd, and once during weekdays). Thank you to everyone on legal information about living together, becoming common law/married. Don’t know if I would still be on the hook for child custody for his child if we don’t work out?

Yes, I am much older now and it could be difficult to have children. Unfortunately, I focused on my education in order to get a good career and be financially stable when I had children. It has been a nightmare finding a decent guy in the sea of fish, either they fear commitment/players, they are controlling, incompatible in the sack, or have PTSD issues — yes, really!! I’ve dated the whole spectrum from doctors, entrepreneurs, bankers….some that did not want me to work. I love my career and enjoy working. I am completely independent and prefer being with someone that fulfills my happiness (like my bf), rather than supports me financially.

I think my 100k is a decent salary combined with a defined pension plan for two people to live quite comfortably, and he currently earns 40K currently on top of that (and has lots of earning potential).

My mother was also sick and passed away recently, so most of my focus was on her life more than my own for a number of years, hence the delay in my life. Yes, now I am in place where I am financially stable…after studying for so long, taking on massive student debt for a couple of degrees, and getting my career in order that I will probably have to try IVF (don’t know as I have never tried to get pregnant, and many of my aunts and grandmother had healthy natural children into their 40s). Yeah, it’s a difficult society for women like me…we work so hard in life to be productive citizens of society(school, student loans, career, home), and I end up paying so much in taxes to subsidize IVF/child benefits/daycare for others with low income. The irony is if I am able to have children I could end up paying so much in daycare after all of this….or my bf becomes a stay at home dad.

Of course it would be great to be with a guy that is financially set, money and finances would be less of a worry. Sure I can give this guy the boot like most have suggested, but I risk losing an amazing guy I really care about and enjoy being with, as well as my limited time to try to have a child naturally (as I am in my late 30s). It could take years to meet another decent guy, as it took me years to meet a guy like him.

I was looking for advice from you on how to invest my money and improve my finances, in hopes I can generate some extra income (as I have obviously missed out on the real estate boom and building equity).

The reason I was disappointed in my father deciding not to help after learning about my bf – they financed my older sister’s education in the US during the 90s (as she did not get into specialized graduate school in Canada). Back then the Cdn dollar was around 65 cents, so they were forking out mega cash to support her education. Then there was me the second child, they had nothing to help me and I didn’t qualify for full OSAP (since my parents earned too much), so I got limited OSAP and had to incur bank student line of credits and work part time. My sister finished school and earned well over 250k per year just in time to help pay my brother’s tuition and even gave him a car. No one has ever financially helped me – guess I got the short end of the stick in life compared to my siblings – I was simply hoping my father would support me financially at this time (as before my mother passed she said they would help with a downpayment, since they did not help with education). Unfortunately, my father is too disappointed in my choice of guy to ever help (though he has never met him) — any my father never went to university and never had a white collar job.

No. I do not feel entitled. I have lived on my own and have taken care of myself and my finances since I left for university. Yes, I probably spent a bit too much on traveling and shopping rather than saving, but I need something that makes me feel happy, as I have no husband/children and I lost my mother. Otherwise, I guess life is just about going to work and coming home and counting cash??

I think I have done well and achieved a lot in my career, my mishap was not purchasing a house much earlier like many of my peers…but remember, I had a whack of student loans to pay and was uncomfortable taking on mortgage debt.

Yes, it seems renting is the best way to go at this time. Although, I would like to have a home and a family, rather than being a lonely spinster and saving my pennies. At this rate I could be well into my 60s paying off a mortgage.

Anyways, I appreciate you making me the focus of your daily blog, but you have me completely misunderstood.

Regards

BRIANA

#251 For those about to flop... on 12.15.15 at 12:07 pm

If we were to offer up five short points about ourselves with no further details or explanation our case studies wouldn’t sound so good either.
I bet readers on here are not in debt to the tune of 1.64 per dollar but I try to abstain from kicking strangers in the gut on just a few details.
There are a lot of people on here who subscribe to the
“Whoever dies with the most toys wins” lifestyle but I say have at it.
Owning a house/ condo and filling full of shit does not make you a better person.

#252 Bottoms_Up on 12.15.15 at 12:09 pm

#227 Ted Hatton on 12.15.15 at 9:53 am
————————————————-
You have provided some sound advice. The importance of seriously scrutinizing your life partner is likely underestimated by the vast majority of people.

And living with parents at the age of 40 is a massive red flag, unless there is a good reason why (disabled, or helping elderly parents etc.).

And killing off the loan makes a whole lot of sense, if you have the cash to do so.

To fellow bloggers, let’s not forget Brianna may not be that great of a catch either (despite having a well-paying job), so maybe a broke live-with-parents-at-40 is the best she can do.

#253 Great Canadian Bubble Co. on 12.15.15 at 12:10 pm

Anyone else watching Poloz try to dance around the complete admission that we are in a housing bubble?

#254 Donald on 12.15.15 at 12:11 pm

Stop trying to convince non-sound money people about the virtues of physical gold and silver inyour posession. The more people on the opposite side of this trade = more for us and less for them. They will find out soon enough.

#255 Fubared on 12.15.15 at 12:12 pm

I love how people are defending the bf. But nowhere in Bri’s letter does it imply she makes good decisions. Why would her relationship decisions be any better? She doesn’t mention the kid much because it’s with the dudes baby mama and she has to compete with the baby mama for this man’s attention. Why else would you bankroll a dudes lifestyle?

#256 gut check on 12.15.15 at 12:21 pm

@ #238 bdy sktrn on 12.15.15 at 11:06 am

Happened to me?
I am in control of my destiny – nothing happened to me.

#257 For those about to flop... on 12.15.15 at 12:36 pm

#216 Guy Fawkes on 12.15.15 at 9:06 am
#162 Tiger 1960
81 Bryan !
Are you stupid, and a nufie!

Tiger, it helps to be intelligent when trying to insult someone.
So let a friend from the Rock share a little knowledge with you today. You can feel good about learning something from a Newfie!

/////////////////////////////////////////
Hey Guy ,ol Tiger ran the exact same line at me last week, I never responded because I thought what’s the point.
I have lived in Canada for over a decade and have heard some of the Newfie jokes ,I can relate to New Foundland because I come from the island state of Australia and growing up and visiting the mainland had to listen to stupid jokes about incest ,intelligence and physical makeup.
People in big cities are on the treadmill of life chasing the almighty dollar living in cardboard boxes up to their eyeballs in debt trying to keep up.
I ask you all ,who is the joke on?

#258 Millmech on 12.15.15 at 12:39 pm

#240
Yup get a real man,one that will run when you get pregnant.This is why there are so many single Moms out there,guy who actually does his paternal duties is a loser,not worthy of women.I worked with a single father of three for some time,said his wife got up in the night to get a drink of water,when he woke to go to work, found her on floor,she had an aneurism in her brain.Not always in those situations by choice.
Great thing was for quite a few years all his older co workers gave up their day shifts and summer vacations so he could be home for his kids.Thats manning up!

#259 Smoking Man on 12.15.15 at 12:41 pm

Right from the horses mouth.

Policy Divergent from the FED…-Poloz

Canada aint spiking anytime soon, might even cut if I read his body laungage right.

#260 noel on 12.15.15 at 12:45 pm

Toronto and Vancouver housing markets with a very solid November. Monthly and yearly gains in price, new listings and sales volume.

December and January will only be more of the same, and if Poloz cuts rates… look out. 2016 will be another record year in those cities. Can’t fight the tide.

#261 Leo Trollstoy on 12.15.15 at 12:45 pm

Vancouver and Toronto continue to power prices upwards in Ontario and BC. The stupidity continues.

http://business.financialpost.com/personal-finance/mortgages-real-estate/even-realtors-caught-off-guard-by-strength-of-canadian-housing-numbers-this-year

#262 jess on 12.15.15 at 12:56 pm

etf’s

“authorized participants”
http://www.naic.org/documents/committees_e_capad_investment_rbc_wg_related_blackrock_statestreet_qa.pdf

So what happens when Authorized Participants back away and the secondary market is also under unprecedented stress?

http://wallstreetonparade.com/

#263 SWL1976 on 12.15.15 at 12:56 pm

Did this comments section just turn into an episode of Dr Phil?

#264 Pre-Retiree on 12.15.15 at 12:57 pm

Let Brianna read all of FF posts.
I don’t mean to endorse all of his views for sure.
However, whatever brilliant financial decisions Brianna could make (re-imburse loans, continue to rent, invest, and plan for retirement) would be entirely annihilated by the BFsoon-to-be-husband- if one can judge from the little information provided.
Brianna, take a page from FF – and put your freedom first.

#265 Nraap on 12.15.15 at 12:58 pm

#179 Kenchie on 12.14.15 at 10:57 pm
“People in Canada complain when the Liberals say they are willing to run a $10 billion a year deficit (0.5% of GDP). Meanwhile, in Saudi Arabia, they’re expected to run close to a 20% of GDP deficit this year… ”

Yeah but the point that you are missing is that the Saudi’s have a 700 Billion fund that they are drawing down against. We have 700 Billion in debt that we are increasing. Deficit spending “might” have some value if the government actually ran 25 billion dollar surpluses in good times to offset the deficit spending but that doesn’t happen – as a nation we just get more entitled…

#266 You're Nuts on 12.15.15 at 1:00 pm

#288 Ex-Cowtown on 12.14.15 at 12:49 pm
#296 saskatoon on 12.14.15 at 1:25 pm

Not being a climate scientist I have no ability to dispute or confirm your facts. Instead I have to rely on the fact that these guys:

http://unfccc.int/secretariat/contact/items/2782.php

… and all of these guys:

https://en.wikipedia.org/wiki/2015_United_Nations_Climate_Change_Conference

… and 97% of scientists (which I’m sure you’ll dispute):

http://climate.nasa.gov/scientific-consensus/

… are pretty convinced.

Given the weight of evidence that suggests it is happening, and the complete absence of a plausible motivation for anyone, let alone this volume of people, to fabricate such a myth, leads me to conclude that it likely is happening.

On the contrary, the motivation to deny the occurrence of climate change is obvious, and the beneficiaries of such a denial (oil companies) are well-heeled.

Thus, the weight of the evidence which I am trained to comprehend leads me to believe it is happening, and that to suggest it is not happening is reflective of such poor reasoning that it is tantamount to insanity — i.e. you’re nuts, you tinfoil crackpots!

#267 bdy sktrn on 12.15.15 at 1:14 pm

#242 buy low on 12.15.15 at 11:28 am
Couldn’t wait any longer. Just bought some CPD at $11.90.
———————
good for you – at least one dog is not getting creamed by this etf.

CDP pays a distribution of 5.43% and we all know the capital value will be restored over time. Meanwhile you’re making good money, with a dividend tax credit, for waiting. Cream me gladly. — Garth

#268 Ponzius Pilatus on 12.15.15 at 1:19 pm

Give me one reason an American would buy in Vancouver. — Garth
—————–
An American in Vancouver.
Dancing in the Rain. Take Two.

#269 Ponzius Pilatus on 12.15.15 at 1:24 pm

Blog dogs!
Should Garth be proven right tomorrow about the Fed’s rate hike, I recommend he be awarded the coveted Nostradamus Medal.

#270 Mark on 12.15.15 at 1:26 pm

“Gold sucks.”

Tell that to the people who bought going into the early 1930s, and held gold for 1000% relative gains. Or the people who bought in the early 1970s and held gold for over 2000% relative gains.

Gold sucks, yes, when there is monetary stability. But every so often, monetary stability evaporates, and that’s when gold is, well, “worth its weight in gold”. A modest allocation belongs alongside bonds in every truly diversified portfolio.

There is no financial instability. Invoking the 1930s is a joke. — Garth

#271 Ponzius Pilatus on 12.15.15 at 1:34 pm

#116 Ronaldo on 12.14.15 at 8:13 pm
#93 Mark

”simply keep your money in the mattress).”

That would work until they discontinue the use of cash and go totally digital as below.

http://www.thelocal.no/20151030/norways-second-bank-to-refuse-cash-from-monday
—————–
I understand, they will accept the matresses instead.

#272 Ponzius Pilatus on 12.15.15 at 1:36 pm

My advise to Bri (Anna):
Change your name.

#273 Smoking Man on 12.15.15 at 1:45 pm

#262 You’re Nuts on 12.15.15 at 1:00 pm

Thus, the weight of the evidence which I am trained to comprehend leads me to believe it is happening, and that to suggest it is not happening is reflective of such poor reasoning that it is tantamount to insanity — i.e. you’re nuts, you tinfoil crackpots!
……………….

Man man Climate Change is not based on science. It’s a religion, engineered to separate your dollars from your wallet. Your entire generation has been mind fkd by your teachers and Cultural Marxism.

One of the lessons they teach, when you lose the argument, and can’t win, resort to name calling and see if you can mob your adversary.

I see your were a fine student, congrats.
Display that obedience certificate high on the wall.

#274 Doug in London on 12.15.15 at 1:49 pm

@buy low, post #242:
Wow, did that bagel I had for lunch contain wheat with ergot fungus in it? The reason I ask is ergot contains lysergic acid, which causes hallucinations. I can’t believe I’m actually reading that someone here, other than Uncle Garth himself, actually sees the value in buying CPD at the DIRT CHEAP prices we’ve seen these days. Most people here are whining about the low price rather than taking advantage of it. Good move, Mr. or Ms. buy low!

#275 Ponzius Pilatus on 12.15.15 at 1:52 pm

Brianna, about being misunderstood.
This was covered a few posts back.
“I’m just a Greater Fool, whose intentions are good.
Oh Lord, please don’t let me be misunderstood”

#276 ROCK BEATS PAPER on 12.15.15 at 1:53 pm

“There is no financial instability. Invoking the 1930s is a joke. — Garth”

True, no instability at this moment, but invoking 1930s is not such a joke. The late 30s is the last time the FED rates were way down here and where they were concerned about deflation.

Mark’s point is valid!

Buying insurance at the time of calamity is not as wise as in advance of turmoil, with the hope that the insurance does not pay off.

#277 noel on 12.15.15 at 1:53 pm

Briana, you sound like a nice person, I wish you luck.

With your salary and lack of debt I’d definitely buy a house as long as its in Toronto proper, don’t mess around with the suburbs or exurbs.

Lock in your mortgage now for 5 years while interest rates are at generational lows. You don’t even need a property in mind, the bank will let the mortgage offer stand for 90 days while you search. January is also traditionally the best month to buy a home.

House prices in TO are going nowhere but up for the next 18 months at least, guaranteed.

#278 Doug in London on 12.15.15 at 1:54 pm

@Karma, post #217:
Personally, I think most if not all of those predictions are rubbish. However, if you think the part about oil going back to $100/barrel is true, why not be in a position to profit from it? Now’s the time to scoop up oil ETFs like XEG-T and USO-NY while they are still on sale.

#279 tkid on 12.15.15 at 1:55 pm

Bri,

invest and rent for now. If you can keep saving your money, you should see a buying opportunity in the next 3 to 4 years IMHO. Don’t buy a condo if your ultimate aim is to buy a house. Rent until you can afford to buy the house. Buying a condo will only waste 5% of the price when you buy and another 5% when you sell. Plus employment is going to get more and more iffier in Canada (and if a sweet job in the US comes your way you’ll want to be able to move without having a property to deal with).

My opinion of your dad is unprintable.

#280 Leo Trollstoy on 12.15.15 at 2:01 pm

#266 Mark on 12.15.15 at 1:26 pm

Nobody cares what happened half a century ago. Nobody cares what happened over a century ago.

And as Garth said, there’s no financial instability.

So gold still sucks.

#281 Frank Blood on 12.15.15 at 2:08 pm

If you are overweight in “safe stuff” (30/70) and it is getting decimated, should monthly allocations go to growth portion or more safe stuff as it is on a fire sale. Also should one factor in the RRSP mortgage as part if the safe stuff? Thanks

Maybe you should just relax and reflect on why you overweighted in fixed income. Has that objective changed? — Garth

#282 Teacher preacher on 12.15.15 at 2:17 pm

#269 Smoking Man on 12.15.15 at 1:45 pm
“One of the lessons they teach, when you lose the argument, and can’t win, resort to name calling and see if you can mob your adversary.”
————
You seem to be a good student then… spew it every day dude.

#283 Cici on 12.15.15 at 2:18 pm

Breaking News: Bank of Canada Says Housing/Debt Threaten Financial System

“Specifically, the central bank is worried about young people who have taken on high levels of debt so they can buy homes in expensive markets.”

http://www.cbc.ca/news/business/stephen-poloz-economic-forecast-1.3365774

Timely post Garth…

#284 pwn3d on 12.15.15 at 2:20 pm

#262 You’re Nuts on 12.15.15 at 1:00 pm
… and 97% of scientists (which I’m sure you’ll dispute):

http://climate.nasa.gov/scientific-consensus/
—————————-

the 97% study is bogus, and wasn’t even talking about scientists, but papers. but you already knew that if you were expecting it to be disputed.

as for “and the complete absence of a plausible motivation for anyone, let alone this volume of people, to fabricate such a myth” – that must have been a joke, so I’m not sure if it is worth responding to. but I will say I find it funny some people are dismayed why people would be skeptical about claims such as “we’re all going to die” and “we can fix it with money”

#285 jess on 12.15.15 at 2:21 pm

Telemarketing Scammer Conned 290 People In 47 States & Canada Into Buying $18 Million In Fake Detroit Real Estate
http://mfi-miami.com/2015/12/selling-18m-in-fake-detroit-real-estate-gets-man-prison/

#286 Broke Dick on 12.15.15 at 2:22 pm

CDP pays a distribution of 5.43% and we all know the capital value will be restored over time. Meanwhile you’re making good money, with a dividend tax credit, for waiting. Cream me gladly. — Garth
——————————————————-

5.43% is trailing yield, no?

Trailing yield is over 6%. — Garth

#287 Broke Dick on 12.15.15 at 2:24 pm

#265 Ponzius Pilatus on 12.15.15 at 1:24 pm
Blog dogs!
Should Garth be proven right tomorrow about the Fed’s rate hike, I recommend he be awarded the coveted Nostradamus Medal.

////////////////////////////////////////

I’ve been calling for the Fed to raise rates for 7 years.
Does this make me righter?

#288 Tomic on 12.15.15 at 2:29 pm

DELETED

#289 Mark on 12.15.15 at 2:44 pm

“Nobody cares what happened half a century ago. Nobody cares what happened over a century ago.”

Nobody should listen to a word of someone who can’t even do basic math claims. the 1970s, nor the 1930s were not ‘half a century’, nor ‘over a century’ ago.

Owned.

And as Garth said, there’s no financial instability.

In case you haven’t noticed, there’s been great financial instability particularly in the past year with commodity prices crashing and the USD$ making its moonshot.

Some defaults seem to be inevitable. Bond prices are rapidly adjusting accordingly. If you can’t see the rising instability in the contemporary markets, then you must be not only mathematically ignorant (see quotes above), but also blind.

#290 Why Why Jay on 12.15.15 at 2:45 pm

I can relate to the student loan pain. My parents had around $3000 in an RESP for me (which is better than a kick in the bum), but I wasn’t eligible for student loans because my parents “made too much money”. Working part time to put myself through school was difficult, but I wasn’t accruing debt. When I was old enough to qualify, I decided it best to get a loan and focus on studies. With the help of some co-op terms I came out “only” 16K in debt. That’s “only” a Kia.

My wife was nuts to marry me. Even more nuts to buy a condo (gasp) with me before we got married. I made less than her (I was high 40s out of school, she was somewhere in the 60s) and I have never appeared particularly goal driven. I wouldn’t call myself lazy, it’s just I never really had to try hard to succeed in school. Out of school that kind of attitude won’t get you very far, so if I was her I would have been a bit worried.

Fast forward and I’m making 100K, her wage also increased a bit but she now works part-time. We sold the condo (for a profit, even after realtor fees.. that was pure luck) and traded up to a detached. We’ll never buy a condo again. We loved our unit, top floor with clear story windows, tons of light, nice view.. but the building was poorly managed. I read all the minutes before we purchased. Nothing stood out, and it even took some time after moving in for the management problems to reveal themselves. My advice to anyone that is going to buy a condo: buy a desirable unit. Top, corner, views, big decks. Given the choice between a new unit and your slightly less shiny one, a buyer might actually consider yours IF your unit has stand-out features (not superficial upgrades like stainless and stone which can be put in any unit). Yeah, you’ll pay a premium, but you’ll have an asset/liability that is easier to liquidate.

Only you can judge whether the guy is a dud or not. Don’t worry too much about the fertility stuff. You don’t know until you try. Might need nothing. Maybe just some fert drugs, maybe drugs and IUI. Numbers aren’t in your favour, but plenty of women have gotten pregnant with no help in their early 40s.

#291 Vundo on 12.15.15 at 2:55 pm

Entitled indeed. Everyone who is calling her a cripple, a disaster, slagging the boyfriend for being lower-middle income… All sick with entitlement. Lots of people have to deal with illness, personal disasters, family issues, career changes… any number of things that can sap one’s net worth. Think about what kind of seeds you wish to sow before you go disrespecting people like that.

#292 Washed Up Lawyer on 12.15.15 at 2:56 pm

My predictions are generally useless, but here is one you can take to the bank. If you are on the sidelines and holding off on purchasing Toronto real estate, wait until after this summer.

The tipping point, and it will be big, will be this summer when Stamkos signs with the Winnipeg Jets. Bargains galore in Hogtown.

#293 Ole Doberman on 12.15.15 at 3:04 pm

Gartho check this out – you were right all along:

http://www.bnn.ca/News/2015/12/15/BoCs-worries-focused-on-Toronto-Vancouver-housing-markets.aspx

Tomorrow is D-day

#294 Chris in Nanaimo on 12.15.15 at 3:07 pm

Brianna…

You are the modern feminist’s dream…you had a choice back in your early 20’s….marry a ‘good’ man, settle down and raise a family….or reject the evil Patriarchy and become a strong independent women and build a career.

You chose the latter….

And you’ve just now you’ve realised the implications….all the ‘good’ men you talk about were married 10 years ago. Meanwhile you’ve hit the ‘wall’ and realise you’re a fast depreciating asset to men, who on the whole aren’t interested in what you earn.

I wonder what all these retired career women will look back on fondly when they sit out on their veranda in their 70’s? Their career, or the grandchildren they never had the pleasure of playing with….

#295 Godth on 12.15.15 at 3:08 pm

#269 Smoking Man on 12.15.15 at 1:45 pm

Why are you going against the herd? Go with the flow and make money dude. Why would you fight against tptb when you can make dosh?
https://www.corbettreport.com/maurice-strong-is-dead/comment-page-1/

Can’t fight that amount of juice.

#296 Nemesis on 12.15.15 at 3:22 pm

“There is no financial instability. Invoking the 1930s is a joke.” — HonGarth

#NoKidding… #TheMusicalsWere,Like… #WayBetter…

https://youtu.be/UJOjTNuuEVw

#297 Preffies on 12.15.15 at 3:22 pm

Pref Shares hit the bottom, time to back up the truck? Team Preferred shares is making its comeback!

#298 Smoking Man on 12.15.15 at 3:27 pm

WARNING !!!!!

Attention small business owners. The feds just gave up the Corp List to WSIB . A Wynne wink to Justina and a thank you.

These commie parasites are coming for every last nickel they can squeeze out of you. If you haven’t registered and are a non exempt Corp, do it now.

They will be fining you and forcing you to pay premiums since 2013.

Here is a list of exempt corps.
• Banks, trusts and insurance companies
• Computer software developers
• Private health care practices (such as those of doctors and chiropractors)
• Trade unions
• Private day cares
• Travel agencies
• Clubs (such as health clubs)
• Photographers
• Barbers, hair salons, and shoe-shine stands
• Taxidermists
• Funeral directing and embalming

#299 espressobob on 12.15.15 at 3:36 pm

Something worth mentioning regarding CPD & ZPR pref ETFs, along with any other.

The ‘book cost’ and ‘current price’ doesn’t include the yield. So don’t freak out when viewing gain/loss%.

Feel better?

CPD gained 3.5% today. — Garth

#300 Trading Naked on 12.15.15 at 3:36 pm

Ahhhh Brian(n)a, “generate extra income”, you say? So of course a shiny “investment” condo seems like a logical turnkey option. But you’ve read enough here about why that will put you in the hole instead. So now what? If you haven’t read it elsewhere: “multiple income streams”. Franchising. I chatted with a guy at a franchised newsstand who said he would consider selling it to me (not sure for how much). That newsstand brought in $2000/month. Multi-level marketing, if your moral compass is broken. You’ve got enough capital to trade options on the side for income, but it’s a steep learning curve if you don’t have balls of steel and brains to match. Any way you choose, it’s going to be hard work. There is also value in rolling back some of that materialistic spending. I mean, why are you looking to “generate income” in the first place? For more money to spend on stuff?

Don’t fret that you’ve “missed out” on the real estate opportunities that your peers are probably flaunting on social media. We’ve all “missed out” on things. I like to believe that we are each blessed in different ways. We all got something that somebody else doesn’t have. For instance, you have a job that pays $100K. I don’t. I would love a job that pays that much, but life kept pushing me off of the job ladder. So in that way, you are blessed.

#301 IM in C on 12.15.15 at 3:39 pm

Brianna:
If you are looking to get married…don’t date. That’s why you had such bad luck. Get introduced to the right guy , by people in your life who matter.
As for your potential spouse having a child he has to pay support for; you need to speak to a MATROMONIAL lawyer to fully understand the potential ramifications of marrying him

#302 Leo Trollstoy on 12.15.15 at 3:45 pm

#289 Mark on 12.15.15 at 2:44 pm

Still nobody cares.

Gold and miners are dead.

#303 Leo Trollstoy on 12.15.15 at 3:50 pm

This is all wrong.

Not only do they have to eventually taper to $0, but they have to unload $4T of US Treasuries on the balance sheet. Of course, if the Fed isn’t buying the US gov’t debt, than its price will collapse, creating trillions of losses to the Federal Reserve. Which will have to find some way of printing the money to replace such.

Ceryx is so glad that his no-earnings tech stocks went up 30%, while gold went down 30% last year. So am I — it gave me a chance to put money to work in the sector cheaply, buying things of real value. Not supporting the latest Ponzi scheme dreamt up in the United States.
http://forums.redflagdeals.com/gold-bubble-bursts-1431262/18/#post18365993

Barrick didn’t hit this price at the end of 2013.

It was $40 5 years ago. I’m looking at $60-$70 by year end. Current pricing is basically giving the company away.
http://forums.redflagdeals.com/barrick-gold-corp-1256989/2/#post16177787

And Barrick still sucks after 3 years.

Will this be a $100 stock by Christmas? H*ll no. But hold it for the next 5 years, and I think the chances are fairly good. Even if gold prices don’t appreciate much.
http://forums.redflagdeals.com/barrick-gold-corp-1256989/#post15747492

Stop burning your money.

#304 james on 12.15.15 at 3:50 pm

#273 Smoking Man

“One of the lessons they teach, when you lose the argument, and can’t win, resort to name calling and see if you can mob your adversary”

++++++++++++++++++++++++++++++++

Wow, Smoking Man, do you realize what you just wrote?

All you do every day here is mob people on this blog or your favourite political targets with hate-filled ignorant, right wing loony name calling. You have yet to present even one coherent argument on anything, you complete idiot.

I guess a grasp of irony is a little beyond you – that takes some actual IQ points above 100 to appreciate. Don’t worry, we’ll all laugh for you.

You are so boring, so lame, such a cheap copy.

You are such a totally schooled, manipulated, emasculated, internet turd troll.

#305 DON on 12.15.15 at 3:51 pm

@Briana

…Of course it would be great to be with a guy that is financially set, money and finances would be less of a worry. Sure I can give this guy the boot like most have suggested, but I risk losing an amazing guy I really care about and enjoy being with, as well as my limited time to try to have a child naturally (as I am in my late 30s). It could take years to meet another decent guy, as it took me years to meet a guy like him.

I was looking for advice from you on how to invest my money and improve my finances, in hopes I can generate some extra income (as I have obviously missed out on the real estate boom and building equity)…

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

Filter what others suggest…only you know the true details of your relationship(s). We had two healthy children (later in life). Your life is yours…just maybe hold off on buying anyone shelter for now. Make do and live your life. By the way, your boyfriend…seems like he is an involved Dad and no doubt is back at home to get a second wind – divorce is both expensive and nasty… no reason to cut the boy lose yet.

From another Gen Xer. Enjoy your life.

#306 Smoking Man on 12.15.15 at 3:57 pm

#295 Godth on 12.15.15 at 3:08 pm
#269 Smoking Man on 12.15.15 at 1:45 pm

Why are you going against the herd? Go with the flow and make money dude. Why would you fight against tptb when you can make dosh?
https://www.corbettreport.com/maurice-strong-is-dead/comment-page-1/

Can’t fight that amount of juice.
……………..

I was cursed with a low boredom tolerance.
Some people collect stamps.

#307 Jane Simpson on 12.15.15 at 4:01 pm

I’m going to kill the G.S.T. Liberal Chretien promised. No, they are now, Justin Trudeau and Bill Morneau are going to hike the G.S.T. H.S.T.

You can take that to the negative interest rates, work for free Poloz Bank of Canada.

G.S.T. and H.S.T. is going to 20% here in Ontario, Canadians just pay and pay and pay!!!!!!!!!!!!!!!!!!!!!!

#308 calgaryPhantom on 12.15.15 at 4:05 pm

CPD gained 3.5% today. — Garth

———————————————————————-

My portfolio was flashing green today. Now that you mention, i know why.

#309 Not Tonight Honey on 12.15.15 at 4:09 pm

#294 Chris in Nanaimo on 12.15.15 at 3:07 pm

[you’re a fast depreciating asset to men, who on the whole aren’t interested in what you earn.]

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

Chris, how do you keep abreast of the current values of humans, are you a slave-trader?

NTH

#310 Bram on 12.15.15 at 4:11 pm

I really don’t understand this cheerleading for preferred stock.

I see no reason to purchase preferred shares.
Just get the regular shares instead.
Do you really think that the priority dividend payments matter that often? In the rare occasion they do matter, losing out on a payment with voting stock is not the end of the world.

There is so much more upside to the voting stock.
And if you let it sit long enough, the capital appreciation will eventually lead to bigger and bigger dividends.

Preferred share is a silly, unnecessary instrument, adding redundant complexity and giving a false sense of security, as the drop in price has shown.

Bram

History proves otherwise. Preffereds as a major component of the fixed-income part of a balanced portfolio reduce volatility and give a yield in excess of most common stock with generally less volatility. — Garth

#311 Smoking Man on 12.15.15 at 4:15 pm

#307 Jane Simpson on 12.15.15 at 4:01 pm
I’m going to kill the G.S.T. Liberal Chretien promised. No, they are now, Justin Trudeau and Bill Morneau are going to hike the G.S.T. H.S.T.

You can take that to the negative interest rates, work for free Poloz Bank of Canada.

G.S.T. and H.S.T. is going to 20% here in Ontario, Canadians just pay and pay and pay!!!!!!!!!!!!!!!!!!!!!!
………………………

They wan’t to destroy the economy, following the strong doctoring.

By design. not an accident.

Problem with this monopoly game reset we are the only ones doing it.

Stupidly beyond comprehension.

https://www.corbettreport.com/maurice-strong-is-dead/comment-page-1/

#312 MF on 12.15.15 at 4:15 pm

Nice little market rally today. Was at work and saw the cp24 ticker with VRX.to on the screen up 18% and did a double take.

Looks like it’s finally all systems go for liftoff. Bought some CPD today. Missed the rally but it’s the trend I am looking for (hopefully).

MF

#313 Spaccone on 12.15.15 at 4:19 pm

Bill Morneau
‏@Bill_Morneau

Contrary to misleading headlines, we are not considering changes to the GST.

#314 MF on 12.15.15 at 4:28 pm

#294 Chris in Nanaimo on 12.15.15 at 3:07 pm

“And you’ve just now you’ve realised the implications….all the ‘good’ men you talk about were married 10 years ago. Meanwhile you’ve hit the ‘wall’ and realise you’re a fast depreciating asset to men, who on the whole aren’t interested in what you earn.”

Yup. This. Will also now try to marry a “nice guy”.

MF

#315 Mark on 12.15.15 at 4:30 pm

“Still nobody cares.

Gold and miners are dead.

Absolutely not true. Gold miners are enjoying costs that are dropping faster than the price of gold. And gold itself is becoming a more attractive asset class on account of rising monetary instability (this time around, in the deflationary sense, more similar to the 1930s than the 1970s).

What people don’t care for is your incredibly rude attitude, your complete mathematical ignorance, or your willingness to discard hundreds of years worth of history that shows that gold is, under very occasional, but nevertheless, periodically existing conditions, a valuable countercyclical hedge. Or as another poster here termed it, systemic “portfolio insurance”.

The problem is that people usually own either way too little of it, or way too much of it. I can agree with Garth’s claim that merely owning an allocation to a Canadian index fund such as XIU (typically overweighted with respect to global asset allocation for a Canadian investor on account of home country bias) is probably enough for most Canadians. But there are many people throughout the world who have little to no exposure who will suffer accordingly during the phase of the economic cycle in which gold does particularly well and other asset classes do not.

#316 Doug in London on 12.15.15 at 4:31 pm

Damn, I’m upset! The DIRT CHEAP sales of CPD are over (all that inventory set aside for Black Friday is now sold off), and now it’s only cheap. I’ll sign off now and get a good strong drink to drown my sorrows.

#317 Bram on 12.15.15 at 4:37 pm

#312 MF on 12.15.15 at 4:15 pm
Nice little market rally today. Was at work and saw the cp24 ticker with VRX.to on the screen up 18% and did a double take.

I wouldn’t buy VRX: a 62 Price-Earnings ratio, and no dividend payments? Ugh…

#318 Jane Simpson on 12.15.15 at 4:37 pm

To Smoking Man, this maybe but they do it only that the government collects more money.

The Bank of Canada who has more economic and financial impact than Justin Trudeau, Bill Morneau, Wynne etc.

They could raise interest rates by 4.50% points overnight or over a 0.50% point per meeting but this would help people earn interest at 6%, 7% in government bonds, GIC’s, savings accounts etc.

This would help savers, investors make a decent return. This would also kill the speculators and debt binge real estate Canadians.

They don’t want that because they saw what happened in 1990’s. Sound familiar, G.S.T. introduced in 1991 and kept there by the Liberal government and then Canadian housing prices got alot worse dropping even more until 1996.

#319 You're Nuts on 12.15.15 at 4:54 pm

#284 pwn3d on 12.15.15 at 2:20 pm

So are you suggesting that climate change was a myth fabricated to divert the wealth of the public into green energy? And that is a more plausible theory than the Kock brothers and the oil lobby funding studies to deny climate change?

#320 espressobob on 12.15.15 at 4:59 pm

#229 Ronaldo

How are your ETFs doing?

……………………………………………………………………………

You might be surprised?

https://www.vanguardcanada.ca/individual/mvc/detail/etf/overview?portId=9563&assetCode=EQUITY##overview

https://www.vanguardcanada.ca/individual/mvc/detail/etf/overview?portId=9558&assetCode=EQUITY##overview

or maybe a global play ex Canada

https://www.vanguardcanada.ca/individual/mvc/detail/etf/overview?portId=9548&assetCode=EQUITY##overview

Or a basic global ETF including Canada?

http://www.blackrock.com/ca/individual/en/products/239697/ishares-msci-world-index-etf

Commodity plays usually result in disappointment, even if they’re forexed.

#321 Fakeologist on 12.15.15 at 4:59 pm

So many occult numbers (65, 110, 18) … not to mention an unbelievable story. Are you sure you’re not making these examples up Garth?

If Brianna’s real, then she should run away from a guy making less than half of her income with a child. Nothing good can come of it.

And rent your kids. Buying’s too expensive.

#322 Disgust Made Me Post, Too on 12.15.15 at 5:12 pm

Well, well;

Been a long time since I have felt compelled to comment on here. Never in my life have I seen so much ageist, sexist, misogynistic crap on one thread! #7 Mouser #19 James, #128 Retired Boomer WI – I suppose none of you has heard of Halle Berry, Alyssa Milano, Julianne Moore, Gwen Stefani, Kelly Preston, Monika Schnarre, or any other of the innumerable women in show biz that have all had successful pregnancies after the age of 38. My mother had my sister at age 41. My parents have an acquaintance whose daughter gave birth at 46. None of these pregnancies, to my knowledge, resulted in a Downs or special needs child. Also, science is doing remarkable things these days. Sperm may one day not even be necessary! So, Brianna, I say, get a good prenup and go for it! I wish you well! Your income is certainly high enough. Pay those student loans first, though.

Also,

#104 Linda- Very good points.

#159 Mark – If this is the Mark that goes on about risk premia, I am pleasantly surprised by your comment.

#212 Family Beagle – Hilarious!

BTW #294 Chris in Nanaimo, you need to go crawl back under a rock.

#323 Herf on 12.15.15 at 5:23 pm

#250 Briana

“Otherwise, I guess life is just about going to work and coming home and counting cash?? “

I beg to differ. Here’s some food for thought. You can either listen to the audio or read the transcripts underneath the pop-up player:

https://www.gty.org/resources/sermons/42-141

http://www.gty.org/resources/sermons/42-142/the-answer-to-lifes-greatest-question-part-2?Term=the%20answer%20to%20life

http://www.gty.org/resources/sermons/42-143/the-answer-to-lifes-greatest-question-part-3?Term=the%20answer%20to%20life

#324 jess on 12.15.15 at 5:35 pm

..”regulatory arbitrage—some jurisdictions have reported that banks and other financial firms are reorganizing their business activities, often at client request, with the possible purpose of avoiding U.S. regulatory requirements. For instance, market observers have noted that the largest globally active U.S.banking institutions use their nonguaranteed U.K. affiliates for transactions with their foreign customers, many of whom prefer to avoid the CFTC clearing, trading, and reporting requirements that would apply if they transacted with the U.S. parent institution. As a result of this shift, the U.S. parent is not technically liable for the transactions of the overseas affiliate with the bank’s foreign customers. Regulators are actively reviewing this development…”

(see Section 5.1.1chapter 7
Potential Emerging Threats and Vulnerabilities

A sharp increase in interest rate volatility or credit spreads could threaten the stability of the
financial system, for example:
• If a rise in rates leads to a significant drop in demand for credit assets, less liquid markets such as high-yield bonds, emerging market bonds, and leveraged loans could have difficulty coping with
demand imbalances and price volatility.
• Highly leveraged corporate borrowers
could be at risk from a sharp rise in short-term interest rates. The rates on their floating-rate loans could increase significantly, leading to a drop in their
cash flow and a potential downgrade of their credit quality, which could then have adverse effects on their credit holders.
• Strategies that use leverage to increase yields in fixed income could suffer sizeable losses if interest rates rise rapidly. If these losses lead to forced selling of assets, this could further depress prices, with this feedback loop potentially leading to further forced
selling.
https://www.treasury.gov/initiatives/fsoc/studies-reports/Documents/2015%20FSOC%20Annual%20Report.pdf

#325 Arb Watson on 12.15.15 at 6:07 pm

Don’t be so harsh on her Garth. If you look at statistics it is still impressive that she was able to save $110K as most people today can’t even save anything close to that.

#326 Ronaldo on 12.16.15 at 1:10 am

#245 JimH on 12.15.15 at 11:24 am

#225 Ronaldo on 12.15.15 at 9:35 am
”responding to #203 Leo Trollstoy on 12.15.15 at 1:42 am”

JimH says,

”Actually, Ronaldo it’s YOU who “need to bone up on your knowledge of the precious metals markets.””

”She would have had a difficult time buying gold on January 1, 2015, but on January 2, she could have picked it up for $1183.50 US. It is currently trading at $1062.11 US.”

Actually Jim, don’t forget that when it’s the 1st here in Canada it’s the 2nd somewhere else in the world when markets are open, so yes you can actually by gold on the 1st in Canada if you know where to buy it.

”Sliver was $15.75 US on January 2, 2015 and is currently trading at $13.74 US.”

Actually, it closed at $15.71 or $18.25 cdn.

Today it closed at $13.74 or $18.87 cdn so up 3.4% this year.

”How you manage to come up with an 18% ROI in US dollars is beyond me, and I’m quite sure it’s beyond you!”

You need to read my post again. If you held $10,000 in USD on January 1st/15 you would be ahead 18.2% in Canadian dollar terms today.

”BTW, gold was selling for $1395.88 CAD on January 2, 2015 and is currently trading at $1459.79 CAD for a return of $63.91 CAD or 4.6%, not the 7.2% you calculate.”

Actually, gold closed at $1172 u.s or $1361 cdn on January 2nd. Today it closed at $1069.15 or $1469 cdn for a 7.9% gain this year.

”Got any other great investment advice before you go broke???”

LOL – nothing could be further from the truth.

#320 espressobob on 12.15.15 at 4:59 pm
#229 Ronaldo

”How are your ETFs doing?”

You said,

”You might be surprised”

I only own 1 etf and guess what? It’s precious metals related, pays a nice 12% dividend and is up 8.8% since I bought it back in August. I expect it to double in the next year.

#315 Mark on 12.15.15 at 4:30 pm

“Still nobody cares.

Gold and miners are dead.”

Mark responds to the above,

”Absolutely not true. Gold miners are enjoying costs that are dropping faster than the price of gold. And gold itself is becoming a more attractive asset class on account of rising monetary instability (this time around, in the deflationary sense, more similar to the 1930s than the 1970s).

What people don’t care for is your incredibly rude attitude, your complete mathematical ignorance, or your willingness to discard hundreds of years worth of history that shows that gold is, under very occasional, but nevertheless, periodically existing conditions, a valuable countercyclical hedge. Or as another poster here termed it, systemic “portfolio insurance”.”

Absolutely right on the mark, Mark. Could not have said it better myself.

#327 Dups on 12.16.15 at 11:50 am

FYI:
Nice guys could be found at church, library, through family and friends, playing sports; not in bars or dance clubs, internet garbage, or drinking places… get that right.

If one glass of water is cold (loser) and one is hot (successful), when you mix the two it becomes lukewarm (mediocre). I bet most people spend more time picking good vegetables and clothes than picking a significant other.

We all have choices in this life. What we choose makes who we want to be.

#328 "People should just use their goddamn common sense." on 12.16.15 at 12:28 pm

Garth,

Nice to see you get a voice in the CBC article today. Well said!

http://www.cbc.ca/news/business/fed-interest-rate-household-debt-neil-macdonald-1.3366890