Dear Eric’s Mom

A woman is seen walking in Manhattan with her pet dog harnessed to her back in a 'pooch pouch'. Where: New York City, NY, United States When: 14 Aug 2013 Credit: Alberto Reyes/WENN.com

Eric and his wife are Millennials, early thirties, living in a major BC city on an island starting with ‘V’ that shall remain nameless. There’s a baby involved, plus two six-figure incomes. These are no normal vaping, can’t-find-myself, entitled, under-achieving, over-educated whiny young people.

In fact, Eric & squeeze have a balanced portfolio of more than $500,000 in maxed TFSAs, retirement accounts and a non-registered portfolio, which they feed regularly. “We are of the mindset that we want to enjoy life the best we can but also make financially responsible and intelligent decisions along the way,” he says. That includes renting a great place for $1,850 a month, which works out to be a price-to-rent ratio of 27. So, the landlord is subsidizing their swelling liquid portfolio. Sweet.

But, these kids have a serious problem – not with each other (they both value freedom and mobility) – but with Eric’s mom. “Take the email I received the other day,” he says.

“Hi Dear, Everyone we know is of common mind that housing in Victoria will still be going up for many years and now is definitely the time to get in the housing market.  If it is your forever house, it will only increase in value and as they say, location, location, location.  We have heard this from so many of our friends who are encouraging their children to get into the housing market sooner rather than later.  There are even bidding wars on houses now but luckily the type of house in your price range is easier to put offers on as there aren’t as many couples with your good finances.  Love, Mom
PS –(from Dad) housing pricing in Victoria has increased 16% from the same time last year.   Banks are paying only 1 –2%.  Net loss of 14% on your investment if you stayed in cash.”

Sigh.

“I love my parents dearly and want to respect their opinions,” says Eric, “but obviously this is hard given the above parental advice.  Several of our other boomer friends/relatives reiterate essentially the same above advice. Housing articles are clipped and given to us, as well as open house pamphlets.  We’re lectured on how their real estate purchase several decades ago has been a great investment. It’s quite the pressure! There’s this certain perceived undeniable level of success that is only met when you purchase a home, irrespective of your financial situation, and we aren’t there yet, and having a large well balanced portfolio is a distant, distant second.

“I just thought I would let you know that the housing pressure some of us milenials are feeling is pretty intense these days. If you have any advice on snappy comebacks or ways to make saving and investing more “cool” or more respected when compared to home ownership, I would love to hear about it :) Cheers, and keep fighting the good fight!”

My pleasure, stressed-out dude. Here ya go. Just sent this.

Dear Eric’s Mom:

My name is Garth Turner and I’m writing to tell you to quit picking on your son. You’ve stressed him so much he’s now writing to strange, bearded people on the Internet, looking for ways he can deal with you. That, Mom, should tell you a few things. None of them good.

First, by every measure, your kid is a standout success. He makes double the average income, has a stable family, a fat investment portfolio and five times the net worth of his peers. How is that not good enough? Take a look around the next time you venture out. Eric’s a rock star. So lay off.

Second, the point of life is not a house. Your son would go from flexible and wealthy to mortgaged and house-bound the instant he signs an offer to purchase. Now he writes one rent cheque. After closing there’d be an eternal blizzard of payments, from property tax to insurance, renos and maintenance to the mortgage (with a rate destined to increase with each renewal).  Why are you shoving him into financial servitude? So he stays close?

Third, real estate (even in Victoria) is inflated, fickle and massively influenced by the mindless house lust you and Eric’s father exhibit. Assets do not have inherently more value because prices are rising. Absurdly expensive houses represent elevated risk, not opportunity. Especially in a small city with a moribund economy, static population and way too many old people.

Fourth, just because owning houses worked for you back then doesn’t make it work for kids now. These are not days of rapid growth, inflation and expansion, but rather times of contraction, disinflation and debt. That makes the current faddish housing mania stand out even more starkly as a bubble nobody should want exposure to.

Finally, who asked you? Eric’s an adult whose decisions have obviously brought him success, comfort, achievement and security. Trying to impose a value system on him, making him doubt his choices, stressing him (because he loves you and wants to please you) and using maternal guilt to guide him into a decision that may be absolutely wrong for his marriage, is irresponsible and egocentric. You push Eric because your friends are pushing their kids? That’s pathetic. Plus the fact Dad thinks investing means collecting 1% interest at the bank shows you’re among the last people on the planet who should be shoveling out financial advice.

If you respect your son, set him free. If not, carry on.

Hugs,
Garth

179 comments ↓

#1 powder_hound86 on 04.18.16 at 6:07 pm

annihilated

#2 God Emperor Trump on 04.18.16 at 6:17 pm

Tomorrow is gonna be YUGEEE.

#3 Jed on 04.18.16 at 6:18 pm

Well said; I think I’ll forward that to my mother. I live in Nanaimo but prices here still overvalued. Not as well invested as Eric but am catching up and will be there in about 3 years (in my 40s). Still have a female parent who thinks a house is a God-given right. I love to rent PR of 24, great landlord, have never saved more money.

#4 Ken on 04.18.16 at 6:20 pm

Absolutely priceless, This needs to be aired on Global News.. Hilarious

#5 hp Victoria on 04.18.16 at 6:21 pm

Excellent letter, Garth!

#6 Frank on 04.18.16 at 6:22 pm

Sure. But if Eric bought a house in his late 30’s (5 years ago) he’s have mortgage payments equal to his rent. Still have $300K in the bank and have $400K in home equity. Plus the comforts of home ownership: want to hide the cables to your TV? Cut a hole in the wall, it’s yours. Need more towel space? Build shelfs in your bathroom. Want to get your jollys from choking yourself naked while listening to Justin Beiber? Build a sound proof autoerotic pleasure den in the basement.

Eric, you’re killing it. If you had bought a house awhile ago like society told you to you be even further ahead. When we have this talk in ten years you may be in the same spot, maybe not. If you want a house buy one, if not don’t. Oh, ever heard of a 15 year bubble? Me either.

#7 mark on 04.18.16 at 6:24 pm

What was Toronto’s average price in 1988 – $229k, by 1996 it was $186k.

Accidents can happen. I was reading through factiva and proquest last night, old G&M articles profiling all the bankrupts. Ugly.

#8 JO on 04.18.16 at 6:24 pm

Smokin lady in the pic
Lucky dog
If we must buy this year Garth would you go with a semi in Mississauga close to GO or a detached in say Georgetown
All things equal what are your thoughts ? I have no interest in buying and want to wait until next year but wife getting very frustrated as the market is stupid
Angry and confused
JO

#9 family beagle on 04.18.16 at 6:24 pm

Here’s a snappy comeback: “No.”

Then go buy some mens underwear.

#10 45north on 04.18.16 at 6:32 pm

just because owning houses worked for you back then doesn’t make it work for kids now.

bought my first house in 1970, in Scarborough. Owning houses has definitely worked for me. I’d say pretty much worked for everybody but i question the status quo: How long could this go on? What would stop it? The answer came in the US in 2006: housing collapsed. Well not exactly collapsed but a 30% average decline. People found themselves underwater; if they wanted to sell they had to write a cheque. Big segments of the middle class were hurt. The underlying cause was debt. Too much debt.

#11 Ponzius Pilatus on 04.18.16 at 6:33 pm

Eric is a rockstar.
“Mama, let him play. Let him play some Rock&Roll”.

#12 Randy Randerson on 04.18.16 at 6:33 pm

That last paragraph was priceless, I’d imagine Eric’s mom will be so spiteful that she’ll put more pressure on Eric.

That’s the problem with Eric and the Millennial bunch, they don’t know how to establish ground rules with parents. Men are too afraid they’ll offend women that they can’t voice their opinions, which in Eric’s case, is telling his mother that he won’t buy an albatross just to appease her.

#13 A Yank in BC on 04.18.16 at 6:34 pm

I make short visits to Victoria twice a year (from further up the island), and I always find myself wondering why in the world anyone would want to live there anyway? The whole place looks like a crumbling mess.

#14 ILoveCharts on 04.18.16 at 6:34 pm

To be fair, putting 100% of his assets in a portfolio is not incredibly diverse.

If Eric plans to make Victoria his forever home, then buying is worth serious consideration.

If he doesn’t buy then he is:

1) Betting that the price/rent ratio will remain skewed and that his rents won’t rise. Seems unlikely.

2) Betting that prices will drop at some point below today’s level to give him a buying opportunity. With the constrained land area in Victoria and the likely further price appreciation in the current run before any drop can start, that is risky.

3) Betting that his portfolio will continue to perform well.

Eric also needs to think about taxes and leverage. Because he will leverage the investment in the house by 4:1 or more, he doesn’t need the same level of returns. His returns can also be tax-free. Even very modest returns on a house can out-perform his portfolio when you account for leverage and tax advantages.

Unfortunately, many people are divided. People who shouldn’t buy houses are buying houses. People who should buy houses are not.

#15 Ponzius Pilatus on 04.18.16 at 6:39 pm

In almost all cases, it’s the females who exhibit house lust.
That’s why Realtors always ignore the guys at open houses.

#16 tundra pete on 04.18.16 at 6:40 pm

Is that Eric’s mom in the red dress? I like his mom’s dog. If he was smart he should convince his mom and dad to move into one of those “a place for mom” homes they’ve put together all over the land of newly weds and nearly deads. He could then slide his fam into the parents shack and save the $1850.00 in rent.

The island market should look real good in a few more years. There will be loads of houses for sale as the boomers and fossils head for the “place for mom” wards and the first time buyers working for wally world and timmies can’t afford rent let alone $800.000.00 plus old shacks.

#17 Cash is King on 04.18.16 at 6:40 pm

PS –(from Dad) housing pricing in Victoria has increased 16% from the same time last year. Banks are paying only 1 –2%. Net loss of 14% on your investment if you stayed in cash

Had to stop reading for a moment to collect myself. Is Dad sure he did not plagiarize the comment from TNLATB.

#18 Ponzius Pilatus on 04.18.16 at 6:41 pm

Bruce Jenner looks good from behind, too.

#19 Freedom First on 04.18.16 at 6:42 pm

To Eric’s Mom and Dad.

Be very very glad it is Garth who wrote you and not me.

Hugs, Freedom First……..

……..as always, living out of control.

#20 Sebee on 04.18.16 at 6:44 pm

I come here for pictures mainly. Today leaves me confused. I like this woman, but the butt running is disturbing.

No purse either. Where does she put the phone? Where are the poop and scoop bags? So many questions. It’s like a movie with no real closure.

#21 james on 04.18.16 at 6:45 pm

Not enough info.

What jobs do these two hold? That income level is very high for the Island, which pretty much offers nothing outside of government and health care.

Is there a reasonable chance that they will lose one or both jobs? How much do they require mobility?

That is a staggering amount of cash for a Canadian couple in that age range, to be honest. Good for them.

I would only say one thing to Mom and Dad:

“Buy low sell high”, not “buy high and hope it doesn’t go down in value”

#22 Madcat on 04.18.16 at 6:46 pm

Aaaahhh! Ha ha ha ha! Ya! Go team Garth!

#23 mamanolikeu on 04.18.16 at 6:47 pm

best damn entry Garth…you tell’em

#24 Sebee on 04.18.16 at 6:47 pm

Forever house. Finally something that’s forever.

#25 Wrong on most counts on 04.18.16 at 6:48 pm

“In fact, Eric & squeeze have a balanced portfolio of more than $500,000 in maxed TFSAs, retirement accounts and a non-registered portfolio, which they feed regularly. “We are of the mindset that we want to enjoy life the best we can but also make financially responsible and intelligent decisions along the way,” he says. That includes renting a great place for $1,850 a month, which works out to be a price-to-rent ratio of 27. So, the landlord is subsidizing their swelling liquid portfolio. Sweet.”

/////

LOL that Eric and his wife make 200k+ per year, have 500K invested with bankers, yet have apparently been renting for years……

Imagine doing all that hard work and still not having your own place to hang your hat? Talk about missing the bigger picture.

#26 Love my KIA on 04.18.16 at 6:54 pm

From a home owner, owing is a PITA.

If you must buy, buy sensibly (small) and not on some Mcmansion monstrosity. I have made $ on my home provided that if I sold it today, but I am also glad I had my digs built small under 1300 sq ft. Remember the Wealthy Barber’s home is also under 1300. No regrets here.

Home ownership is an investment and a responsibility that costs money, and depending how desperate your municipality is for cash flow and potential natural disasters, home ownership costs may increase substantially too. Don’t live to keep up the the Jones’, there is a lot more peace of mind doing what is better for you.

#27 Muttley O'Toole on 04.18.16 at 6:59 pm

” . . . . as there aren’t as many couples with your good finances.”
So mum, how do you reckon he got these good finances?
Certainly not by buying a house in bubble territory.

#28 D.D. Corkum on 04.18.16 at 7:00 pm

That is a hilarious letter.

I’m glad I don’t need to change the name and send it to my parents. But I know lots of people who really need to read this ten times.

#29 Jimmy on 04.18.16 at 7:00 pm

Nice springtime pic

#30 Smoking Man on 04.18.16 at 7:02 pm

Love the pic. Especially the heals.

The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. The micro bakini that seams to be in fashion around also helps.

Mind you, don’t know if I can erace the memory of that 60 year old wearing one. She was pretty hot for her age but it is so wrong….especially her tattoos.

Love American people. They give no shit.

#31 Vic Girl on 04.18.16 at 7:04 pm

Victoria’s real estate scene has taken an upswing lately. How attitudes change! Just last year the market was pretty slow, everyone said it peaked in 2008 and had over 7 miserable years of stagnation. Some people who bought in 08 was pretty miserable…. till now. 8 years is a long time in a young person’s life. (Sorry, no charts here, I’m just quoting what I’ve heard a dozen times.)
Eric’s Dad’s argument is weak. So your Victoria house “pays you” 16% return a year? Really? It hasn’t paid anyone 16% per year for the past 8 years, that’s for sure. Obviously no one has a clue about investing. Owning a house as an investment vehicle is the brain-dead choice.

#32 Renter's Revenge! on 04.18.16 at 7:05 pm

Eric,

Watch “They Live”:
http://m.imdb.com/title/tt0096256/

Get a pair of sunglasses from the movie and put them on (metaphorically speaking), look at your parents and then tell us what you see.

P.S. Don’t be scared, we’re here for you.

#33 Vic Girl on 04.18.16 at 7:06 pm

sorry…
Some people who bought in 08 WERE pretty miserable….

#34 Doug t on 04.18.16 at 7:07 pm

Sounds like they have enough to do both

#35 james on 04.18.16 at 7:08 pm

There was a brief discussion of housing today at work. One coworker with a home in Bellevue WA said that his house is up 150k over 2 years. He shrugged. Prevailing sentiment is that what goes up can come down.

Speaking of which, is SF going to have a condo crash now that venture capital is not flooding into the Bay Area?

http://www.businessinsider.com/san-franciscos-condo-boom-turning-into-bust-2016-4

I can’t wait for all the Canadians to tell me that, unlike SF, Toronto/Vancouver/Kingston (etc) have limited land and everyone wants to live there.

#36 Panhead on 04.18.16 at 7:09 pm

Do you really have to put up with letters like that? Really?
Feels like the first day of summer out here in 604land today. Love this global warming …

#37 gut check on 04.18.16 at 7:11 pm

I was on the fence… “Do I like Garth … do I love him.. do I think he’s a d-bag??” I couldn’t make up my mind.
Until today.
Today I know I love Garth Turner.
(above opinion subject to change without notice. of course)

#38 gut check on 04.18.16 at 7:13 pm

@ #30 Smoking Man on 04.18.16 at 7:02 pm
Love the pic. Especially the heals.

The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. …”

HE’s BAAAAAA-AAAAAACK!

I am stoked!
I like coddies better than cooties anyday. :D

#39 Victoria Real Estate Update on 04.18.16 at 7:19 pm

Eric, I think Garth’s advice is sound.

As we’ve seen in recent years in Victoria (2010), Victoria’s housing market can turn on a dime, even as realtors, the media, etc. tell you to get in now or be priced out forever.

The price decline that began in 2010 in Victoria took prices 15-20% lower even though rates were falling. Imagine how low prices would have fallen if rates had been rising. Indeed a rising rate environment is what you will face if you buy now.

Current market conditions will change and prices will begin to fall again. It’s inevitable.

The latest numbers from Teranet’s house price index shows a month-over_month price drop of almost 1%. It also shows a year-to-date price increase of less than 1% and a year-over-year gain of only 8%, not the exaggerated number you may have heard from your in-laws.

The argument to buy now you’ll hear from most is based on recency – that recent gains will keep happening in the future. However, that argument is flawed and weak. Past market performance can’t be used to predict future market performance. As well, past gains were fuelled by falling rates but real estate performance in the future will be all about rising rates

There is no solid argument to justify buying now for all the reasons Garth has outlined.

Chill and wait for lower prices. Buy now only if you want a weaker financial future.

#40 Modern Millenial Man on 04.18.16 at 7:21 pm

Garth,
Where is the most desirable place in Canada to live all things considered with the Coldest (Not HOT live Van or TO) Housing market? The Unicorn market if there is one.

#41 espressobob on 04.18.16 at 7:23 pm

Oil fails on output freeze. Indices are up. Short term negativity met with the upside in the major plays.

Go figure? Why time the markets?

#42 smbs09 on 04.18.16 at 7:32 pm

I am renting at price to rent ratio of about 30. Prices in my area are off the wall.

#43 Trojan House on 04.18.16 at 7:36 pm

Asset = something that puts money in your pocket

Liability = something that takes money out of your pocket

House: Property tax payment (always increases); maintenance costs (always going up); insurance cost (never stops increasing); mortgage payment (plus you do not own it until the mortgage is paid and even then you don’t own it – try not paying your property taxes)

So, which column is owning a house in?

#44 Pierre on 04.18.16 at 7:36 pm

That is the fakes the story ever – amazingly incorporates every argument the anti-real estate set on this blog have ever made, all squared away into 200 words. Surely you were a little suspect Garth?

#45 Bytor the Snow Dog on 04.18.16 at 7:39 pm

I had to look at the title pic several times to determine if I actually saw a dog hanging there.

I think I need to look again just to be sure.

#46 jay on 04.18.16 at 7:41 pm

Garth, are we not going to have recession’s anymore with the way the Governments manipulate the money supply ?

#47 Mark on 04.18.16 at 7:50 pm

“Even very modest returns on a house can out-perform his portfolio when you account for leverage and tax advantages. ”

Historically leverage does not increase the returns on RE. Especially when RE is bought at an extreme price. Leverage thus becomes an albatross at such point, paying an increasing rate against an asset that is destroying equity.

There’s a reason why the banks and their backers are “rich”, and homeowners (ie: the Canadian public) generally are “poor”. And its not because home ownership outperforms the return on mortgages, that’s for sure.

Intuitively this makes sense. A mortgage is a service provided to a borrower in order to acquire an otherwise unattainable asset in the presence, in exchange for a future stream of payments at interest. There are various calculations out there that indicate that by the time a typical Canadian has paid off their mortgage, they’ve bought their banker (and the taxman) 2-3 houses in return. Leverage against RE is to be avoided whenever possible except if one is truly buying an asset at a long-term bottom and can reasonably expect to be able to refinance the debt in the future at a lower rate. Can we see lower rates on mortgages in Canada to highly creditworthy clients? Absolutely, especially as a deepening deflation sets in. But the odds are historically against such being a long-term sustainable situation, and the rising rate environment does seem more plausible, if not imminently, then 5-10 years into the future.

are we not going to have recession’s anymore with the way the Governments manipulate the money supply ?

If central bankers could repeal the business cycle, they would have done so on the many previous occasions when recessions occurred. So recessions absolutely will continue to occur. We’re probably in one right now.

#48 Mark on 04.18.16 at 7:52 pm

“unattainable asset in the presence”

“unattainable asset in the present

Really need some IT whiz to add a editing feature to the blog comments.. Lol. Or at least a preview function before committing to “send”.

#49 crowdedelevatorfartz on 04.18.16 at 7:52 pm

@Brazil expat

Have they cleaned up the fecal water for the Olympic rowing venue yet?

Vancouver rowers have to dodge bigger things than raw sewage…

http://www.google.ca/url?url=http://blogs.theprovince.com/2016/04/12/kayaker-has-insanely-close-encounter-with-whale-in-english-bay/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiokNrjsJnMAhUGy2MKHaYNAYEQFggWMAE&usg=AFQjCNG6mVCDm2y3Wp4pfERvzEA4Y7qUZg

#50 crowdedelevatorfartz on 04.18.16 at 7:56 pm

@#40 Modern Man

Apparently here.

http://www.google.ca/url?url=http://www.cbc.ca/news/canada/newfoundland-labrador/st-john-s-one-of-canada-s-happiest-cities-1.3041041&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjgpJumsZnMAhUJ4GMKHdh5BxoQFggTMAA&usg=AFQjCNGrNfUnsGsN-MXIqMVYh2XF_USgVQ

Unless, of course, you’d rather live in Sudbury Ontario or Trois Riviers Quebec

#51 TurnerNation on 04.18.16 at 7:57 pm

Where’s Atsa the Boy. All grown uppa?

#52 TRUMP on 04.18.16 at 7:58 pm

46 Jay…..

We are going to have one MASSIVE recession when Governemnts manipulation of the money supply runs out of ammo.

#53 Cici on 04.18.16 at 8:02 pm

#13 A Yank in BC

Thank you! I agree completely, and can’t figure out why that whole bunch is so self-obsessed and elitist.

That city has been going downhill for awhile. Tons of crime, drug problems, too many people on disability and social assistance; low-income public housing overload, and now, to boot, all the once-plush greenery is dead brown-orange and fried.

Oh well, at least they have self-love…

#54 understood by few on 04.18.16 at 8:03 pm

That’s a sweet deal on rent (depending on what they consider a great place). Probably no dog(s), definitely makes it easier to find a place. I wasn’t able to find anything under $2500 last time I checked. Or maybe they’ve been in the same place a long time.

In your early 30s being mobile is great. Why tie yourself to a boat anchor of a mortgage (especially in this market)? There’s always time to buy a house and youth is fleeting.

Wife and I have talked relocating (few options in Canada and US), but the house is an issue. Not a huge issue, but definitely a sticky detail. Victoria is expensive and dull, so a change would be nice. I’m loving the weather right now though. Was driving around with the sunroof and windows open. Mid 20s according to the car. My favourite time of year in Victoria.

Anyhow, I think investments is the right choice given age, the market and the fact they have a place they are happy with.

#55 For those about to flop... on 04.18.16 at 8:04 pm

Hey LP,just writing you back to let you know that I’m not ignoring you but the dog you commented on was not mine it was Bdy Sktrn’s.
He was trying to shame me into stop posting so I had a time out,but I had fun today.
If you create a meme people will accuse you of wasting time but it takes less than a couple of minutes once you find a picture you like.

:::::::::::::::::::::::::::::::::::::::::::::::::

Boom,I’m glad you liked the picture yesterday as I gave it to the boss with you in mind.Im not too sure who the people in that picture are but I thought with the build up to the election you might like it .{Democrat,Republican,Pissed}

Also I agree with Pierre ,that this letter smells fishy but as always the boss connects the dots and is an interesting case study none the less.

M41BC

#56 Pierre on 04.18.16 at 8:12 pm

No point in forwarding your response Garth – it would just end up in an inbox belonging to one of your super fans. If not for the absence of a crude and pointless chart, I would have bet Victoria Real Estate Update.

#57 Nemesis on 04.18.16 at 8:13 pm

…”…and way too many old people.” – HonGT

#SomeWhereInJamesBay…

https://youtu.be/kTnEyRLMvqk

#58 dosouth on 04.18.16 at 8:14 pm

We aswell have such a successful daughter and son in Alberta in the same age group making the same money, kidless, well invested and yet they don’t need us to write you and tell them how well they doing.

Does that mean they may not be the true Millennial’s always looking for approval at every turn including mainly boomer blog. Tell mommsie to just _____ off. But then you said that already.

#59 Vancouver Triy on 04.18.16 at 8:17 pm

Can someone please explain price-to-rent ratio?

27 times what?

#60 Half Full on 04.18.16 at 8:17 pm

Hugs, Garth ….Lol!!!! Such a warm and fuzzy letter, too!

#61 DM in C on 04.18.16 at 8:22 pm

Hit the nail on the head with this part, Garth:

“Why are you shoving him into financial servitude? So he stays close?”

DINGDINGDINGDINGDING.

$500k and not owning means they’re a flight risk. Helicopter momma wants him to stick around.

#62 Interstellar Old Yeller on 04.18.16 at 8:28 pm

Eric, if the letter doesn’t work, start giving your parents unsolicited advice and pressure about their weight, health, and fitness. They’ll love it as much as you love their current e-mails!

#63 WalMark of Sadkatoon on 04.18.16 at 8:31 pm

finally! a young couple that has their shiznit together!

#64 WalMark of Sadkatoon on 04.18.16 at 8:34 pm

“unattainable asset in the presence”

“unattainable asset in the present”

Really need some IT whiz to add a editing feature to the blog comments.. Lol. Or at least a preview function before committing to “send”.

told ya guys

http://mobile.businessinsider.com/people-who-correct-typos-may-be-jerks-study-finds-2016-3

i called it first!

#65 bigtowne on 04.18.16 at 8:38 pm

My sibling lives in Vic. She sold her OakBay cottage a couple of years back after it sat on the market for eons and eons and eons and eons……she spent a ton of cash dolling it up but the neighbors had newer and better and bigger so she was really done in but she got her done after eons and eons and eons of time. Ya knows what i mean.

Vic is a torment as my sib is always on a plane to africa or Spain as Vic is well dull as a door knob.

I visited my sib and spent ten hours on bad B.C. roads and when I got there her ex-RCMP boyfriend (whom she pretended not to noodle.,,,that’s another story) nuf said she tossed me on the street after two days. So now you know how nutz things get on the left coast.

And then she was next to a hoarder…can u magine a hoarder in a million dollar cabin? heh welcome to canader.

Hugs kidz

#66 TCContrarian on 04.18.16 at 8:40 pm

#59 Vancouver Triy on 04.18.16 at 8:17 pm
Can someone please explain price-to-rent ratio?

27 times what?

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

Say, price of house (at current market conditions) = $1,500,000
And say an equivalent house rents for $2,500/month, which means: 12 x $2,500/mo = $30,000/year

This would represent a PR ratio of $1,500,000/$30,000 = 50.

So, if the price drops to $1,000,000 (a -33% correction), and the rent stays at $30k per year, the PR becomes 33.3

Hope this helps!

#67 Mark on 04.18.16 at 8:46 pm

“Can someone please explain price-to-rent ratio?

27 times what?

The price of the house is 27X the annual rent.

A “rule of thumb” for long-term real estate investors is that they aim for 100X monthly rent as a good price to acquire property. Stated as an annualized ratio, that’s 8.33X annual rent.

So for that property to be of interest to a RE investor who aims for the 100X monthly rent “rule of thumb”, the property would need to fall 69% relative to rent in price.

#68 WalMark of Sadkatoon on 04.18.16 at 8:48 pm

What jobs do these two hold? That income level is very high for the Island, which pretty much offers nothing outside of government and health care.

government, healthcare or tech are the likeliest candidates

#69 Metaxa on 04.18.16 at 8:54 pm

WalMark of Sadkatoon, why don’t you give it up, boring, repetitive, lacking in any intellectual or humorous content…you sound like a 12 yar old bully.

#40 Millenial Man writes:
Garth,
Where is the most desirable place in Canada to live all things considered with the Coldest (Not HOT live Van or TO) Housing market? The Unicorn market if there is one.

I’m not Garth but how does 5 bedrooms, mountain views, open plan, wood stove heats the entire home, 220 workshop on real property for $149,000 asking sound?

Sayward, Vancouver Island…just a tiny bit north of Campbell River.

If you can live without seeing the sun from October til June sounds good, eh?

#70 Brazil ex-pat on 04.18.16 at 8:59 pm

#138 Samba Dancing on 04.18.16 at 4:50 pm
Tank that ship baby… it better be nice there..

http://www.xe.com/currencycharts/?from=BRL&to=CAD&view=5Y

#130 Brazil ex-pat on 04.18.16 at 3:43 pm

#113 Samba Dancing on 04.18.16 at 1:24 pm
A tad short sighted….
http://www.xe.com/currencycharts/?from=BRL&to=USD&view=5Y
——-

#110 Brazil ex-pat on 04.18.16 at 12:55 pm

++++++++++++++++++++++++++++++++++

Yes….you know how CHEAP it is to live in Brazil? With its awesome food, beautiful women and nice weather?

Enjoy your over priced over taxed crappy healthcare Canada……as your charts are showing. How is that $1.15 gas price in Moldcouver with oil at $35 working out for you?

Cheers !!

#71 For those about to flop... on 04.18.16 at 8:59 pm

#64 WalMark of Sadkatoon on 04.18.16 at 8:34 pm
“unattainable asset in the presence”

“unattainable asset in the present”

Really need some IT whiz to add a editing feature to the blog comments.. Lol. Or at least a preview function before committing to “send”.

told ya guys

http://mobile.businessinsider.com/people-who-correct-typos-may-be-jerks-study-finds-2016-3

i called it first!

////////////////////////////

Awww shit,I can’t believe I’m going to do this on the same day I told him to stop chucking dart at Ross Kay’s ass ,but here I go…

Walmark ,the dude was correcting himself,I told him not to bother with this practice before but if that’s what he chooses to do so be it.

Change your name back to Leo ,leave the guy alone as much as possible unless he states crazy shit like real estate in Vancouver peaked in 2013.

Get over your fascination with him,most of the time he means well,someone asks him a question,he answers it to the best of his ability

Mark stating the same fallacy over and over does not make it true but you are tenacious if nothing else.

It’s time that you two lovers breakup…Mark,I know you are ready. Walmark it’s time to move on ,hold him accountable if you wish but don’t obsess its kind of creepy.

Your welcome Mark…

M41BC

#72 BOOM! on 04.18.16 at 9:01 pm

HONORABLE GT WRITES A SUCCINCT LETTER TO MEDDLING MOM. If only more younger kids had parents with a bit more foresight! These undoubtedly were the same kinds of loving parents who told;d the kids to put every nickel you can spare into DoT.com stocks circa 1998-99… rather than in diversified mix of stocks, bonds & REITS.
Who might remember what happened next?
If you had that diversified portfolio…shorter recovery time. Cue 2008… same answer here. The world was going to hell both times as I recall, but we somehow got lost again. Dam map makers anyway…

Mr. Market surprised my today. Nicely surprised me, too.

Haven’t been watching the pre-election carnival, will tonight to see how the NY state numbers came in. 80’s today, got the Mustang all cleaned up for top-down use.
Forecast – rain, of course!!! Tuesday we’ll take the Caddy through the rain-drops. Gotta get some parts for the lawnmower tomorrow. Do renters have that problem?

Flop – great picture yesterday! Said it ALL!!!

#73 swinginghumanzee on 04.18.16 at 9:02 pm

C’mon, Garth, tell her what you REALLY think!

#74 LP on 04.18.16 at 9:07 pm

#48 Mark on 04.18.16 at 7:52 pm
“unattainable asset in the presence”

“unattainable asset in the present”

Really need some IT whiz to add a editing feature to the blog comments.. Lol. Or at least a preview function before committing to “send”.
*********************
You’ve already got one. It’s called re-reading. Editors tell us to read sentences backwards to spot errors.

#75 nonplused on 04.18.16 at 9:11 pm

Every now and then, Garth, you hit one out of the park.

The epiphany for me came about 4 years ago, when I was well into my 40’s. My mother’s advice even about very micro issues was 100% an effort to manipulate outcomes to her preference, and not at all showing even the slightest concern for my well being or success. And once the veil fell from my eyes, I had to confront the fact that this had always been the case, right back to the day I was born.

Everyone else but Eric can probably stop reading now. Folks, your parents brought you life and raised you and gave a fair amount of their wealth towards feeding and clothing you. But for many of them that sacrifice created a sense of ownership. It’s hard for it not to. Many parents feel they “own” their children and they are not capable of seeing around this perspective even when the children are full grown and self sufficient.

Why do many parents, especially in my day (wow the stories I could tell) think corporal punishment is the solution to every perceived transgression? Because they own you and they want complete obedience through fear (it’s the lowest effort approach). Imagine what would happen to your father if he decided the neighbor’s kid did something wrong so he took off his belt and started whipping the neighbor’s kid with it. Jail time if he survived the gun fight with the neighbor. But his own kid? Whip away.

Why is it that when you do call mom the first thing she says is “you don’t call or visit enough”? Because she resents the lack of control and your independence. You’d probably call more if she were happy to hear from you and celebrated your successes. But no, every conversation begins with a guilt trip about all the things you aren’t doing for her, including not calling enough.

So what do you do, Eric? Call her as much as you can stand, she is your mother after all, but be your own dog. I don’t know whether it is the right thing for you and your wife (the only woman who matters now) to buy or rent, this decision is specific to every different person and situation. But I do know for certain, 100% certainty, the only woman with whom you should discuss the situation and your decision with is your wife. Your mom cannot help but manipulate the situation for her own purposes and she is probably not even aware she is doing so, she’s been doing it her whole life without consequence to her. Your wife will probably manipulate the situation to her own advantage too but at least she has a vested interest in things working out for the better so long as she chooses to stay married to you. What’s better for your wife is probably better for you (if she’s a keeper and a stayer).

It took me a long time to realise this, Eric, well past your age, but the only good advice comes only occasionally but always from “disinterested” parties, who have nothing to loose or gain. A certain bearded internet personality comes to mind as an example.

Ok now I am getting redundant, but your contractor cannot advise you on what renovations you need (always more). Your car dealer cannot advise you on what feature you need (always more. My pet peeve here is AV system which the kid never uses now that he has an iPad which cost half as much). The guy at Best Buy cannot tell you which TV you need because the more expensive one is always better. (Get an LG not a Samsung.) Eric, you’ve done pretty well being your own dog. Don’t let your mom tell you which butts you should sniff.

#76 Andrew Woburn on 04.18.16 at 9:11 pm

This is what I would (try to) tell Eric’s parents.

Most Canadians are house crazed and will apply for as big a mortgage as they can get. When interest rates are high, they get less mortgage and have to settle for a cheaper house price. When rates are low like today, they get bigger mortgages and collectively bid up house prices.

Eric’s parents and their friends didn’t do well on real estate because house prices always go up. They won mainly because mortgage interest rates have been falling steadily for years which means each batch of new buyers qualified for bigger mortgages and used them to keep bidding up prices.

We can argue all night about whether rates will go up and when but it is hard to argue that rates will keep going down. The trend that made boomers think they were real estate geniuses is over. Now it’s down to pessimism, that future rate rises will reverse the price spiral, and optimism, that prices will just coast to a stand still.

If you believe rates will rise and so drive prices down, you would be a fool to trap yourself into an underwater mortgage. But even if you believe prices will just level out, this means there is no medium term financial win in buying. Unless you have non-financial reasons for buying, you would be much better off renting and investing the savings.

Or you could hope there is an endless supply of foreign buyers and bet it all on red.

#77 WalMark of Sadkatoon on 04.18.16 at 9:23 pm

gartho’s blog attracts overachievers. except in the comments section lol!

#78 Linda on 04.18.16 at 9:27 pm

‘Why are you shoving him into financial servitude? So he stays close?’

Methinks a major underlying motive has been pinpointed here…..

#79 WalMark of Sadkatoon on 04.18.16 at 9:30 pm

A “rule of thumb” for long-term real estate investors is that they aim for 100X monthly rent as a good price to acquire property.

as a successful property investor I just wanted to let newbies know that this is false. part-time real estate ‘investors’ use this rule.

#80 Freedom First on 04.18.16 at 9:31 pm

Right on Smoking Man! I went through something similar one winter, and the Nevada sun worked for me too. Stay well!

And yes! Some wimmin just shouldn’t ware bakniis. At any age.

#81 WalMark of Sadkatoon on 04.18.16 at 9:32 pm

YVR real estate prices have truly hockey sticked upwards. YYZ is getting there. I wanna see how vertical it can get lol

#82 TurnerNation on 04.18.16 at 9:32 pm

We have snowflake kids! : Jayden, Hayden, Brayden, Graydon.

#83 Harbour on 04.18.16 at 9:36 pm

Making 200K a year in a town on an island that maybe has 100,000 people

#84 TurnerNation on 04.18.16 at 9:37 pm

Does that dog have an Oedipus conflict?
Unlike today’s hapless featured blog dog

#85 acdel on 04.18.16 at 9:50 pm

Ha,ha,ha, love this blog!

#86 Panhead on 04.18.16 at 9:51 pm

#69 Metaxa on 04.18.16 at 8:54 pm

Sayward, Vancouver Island…just a tiny bit north of Campbell River.
If you can live without seeing the sun from October til June sounds good, eh?

Yabut you didn’t mention the “all you can eat dungenesse crab place” … that’s gotta be worth something …

#87 Tony on 04.18.16 at 9:57 pm

Re: #40 Modern Millenial Man on 04.18.16 at 7:21 pm

For me it would be Provost, Alberta. A lot of like minded people (not exactly rednecks) there especially from the past if you get what I mean say about 25 or 30 years ago.

#88 raisemyrent on 04.18.16 at 9:57 pm

Is a mom like a mum, but fatter?

I always find these stories amusing. All these successful people who can’t have an open, rational conversation, or agree with their spouses, or be assertive with their parents. F me if I’m emailing someone on the webs for advice on how to deal with my mum in my early 30s. Oh wait I’m in my early 30s. Never mind…

#89 cramar on 04.18.16 at 10:01 pm

#40 Modern Millenial Man on 04.18.16 at 7:21 pm

Garth,
Where is the most desirable place in Canada to live all things considered with the Coldest (Not HOT live Van or TO) Housing market? The Unicorn market if there is one.

————–

Like beauty, the best place is in the eye of the beholder. I love it here in Leamington, ON. Over 25c here today under constant sun, but you have to put up with a cacophony of migrating birds. A house (brick bungalow with attached garage) is for sale on our street. Asking $165k.

#90 Ronaldo on 04.18.16 at 10:02 pm

Way too funny Garth but so true. Thankfully I didn’t have parents like that.

#91 Mark on 04.18.16 at 10:03 pm

“as a successful property investor I just wanted to let newbies know that this is false. part-time real estate ‘investors’ use this rule”

No, the rule is founded in the long-term normal P/E ratio for an asset class that grows its earnings/rent at the rate of inflation traditionally.

The stock market has a GAAP P/E ratio historically of around 15, and a P/CF ratio of around 10. And grows earnings over the long term at the rate of nominal GDP growth.

The “rule of 100X rent” for RE is roughly an equivalent P/E ratio of around 10-12. Basically reflecting that RE will not grow its rent very fast (ie: 2-3%/annum compared to 3-5%/annum earnings growth for stocks).

You may have gotten lucky in the short term, but if you are paying more than 100X rent for your property, you probably will receive a long-term return that is lower, significantly than that of the long-term return of the stock market.

Why someone would want to be a landlord when they could just sit back and collect stock earnings with less outlay is a mystery to me.

#92 Metaxa on 04.18.16 at 10:09 pm

Panhead writes:
Yabut you didn’t mention the “all you can eat dungenesse crab place” … that’s gotta be worth something …

That is worth more than I can express.

Those that get it…the view as the ferry enters Alert…the simple solitude of Cape Scott, the old abandoned orchards in the middle of the bush…the colour of the sunset over Kye Bay…non stop Snowbirds, all at a discount…the discount being I don’t need a mug of Metamucil, handful of Xanax and a 50-50 shot of vodka and oj in the morning to face my commute.

#93 Garthcouver on 04.18.16 at 10:17 pm

A major BC city on an island starting with ‘G’ that shall remain nameless.

#94 Love my Kia on 04.18.16 at 10:19 pm

Yes there is a place in Canada where you can buy a decent home for less than the price of a pick up truck,

http://www.cbc.ca/news/canada/thunder-bay/manitouwadge-housing-costs-1.3538068

#95 For those about to flop... on 04.18.16 at 10:27 pm

Cramer @89.

Hey Cramer,although the post was not directed at me and was short I enjoyed reading it as I had never heard of this town as I have only visited the evil part of Ontario after migrating from Oz.

When I created my gap code (M41BC) I was hoping to find out about other places in Canada but so far most other people that have used it came back as ON,BC or AB
don’t people in other provinces care about financial advice.

Or is just that they live under the radar and within their means without dollar signs in their eyes

I would really like to see someone use the gap code F34NS or M87YT .I think there are some people from Quebec on here ….are they ashamed to admit it?

Show me your gap code…
Peace.

M41BC

#96 Entrepreneur on 04.18.16 at 10:31 pm

Good advice and hopefully that will help out the youth. The push to buy is high from all avenues, so stupid.

“Expectations” blog: When #49 Sideshow Bob typed in about “When millions know nothing about economics and get together it’s called the NDP” said by Michael Campbell. Saying that, means to me that all political parties are battling for the “vote” and not talking/working an agreement for the people. Time for political parties to mesh/find a comfortable ground.

The system right now are like children playing in the school ground trying to be top dog and that is NOT how a system should be govern (and how much longer can earth take this crap).

#97 Bmac on 04.18.16 at 10:34 pm

One of my favourite posts of all time! Garth, you’re the rock star.

#98 For those about to flop... on 04.18.16 at 10:41 pm

Sorry Boom, I forgot about M64WI.

There must be other people in the U.S as well?

I have to change mine to M42BC soon but for now it is…

M41BC

#99 Another Albertan on 04.18.16 at 10:42 pm

Here’s a good canned response for anyone who won’t shut up about a “sure thing”, be it a house, a stock, Beanie Babies, Cabbage Patch Kids, etc.

“If this is a guaranteed sure thing, then let’s write this up as a contract. I’ll buy and in 5 years, there will be a forced sale. If it goes up in value, I’ll give you 50% of the gain. If it goes down in value, you cover 100% of the loss, which should never happen because it’s a sure thing.”

Cue the sound of crickets.

It’s amazing how quickly people shut up when it comes to having quantified risk nailed to their forehead via legal document.

I’ve seen this a number of times when bringing partners into a business. Everyone is happy to sign over cash for their equity stake… the promise of riches in their future. Then have the discussion about how they are going to have to go to the bank and sign a personal guarantee to cover any losses. I’ve seen well-paid, senior professionals literally start to shake.

If you are dealing with people who cannot handle having a balanced, open, and honest discussion, then you might consider taking their advice with a solid dose of salt and you might definitely consider not getting into a business transaction with them.

Everyone else’s mileage may vary.

#100 Panhead on 04.18.16 at 11:07 pm

#92 Metaxa on 04.18.16 at 10:09 pm

Panhead writes:
Yabut you didn’t mention the “all you can eat dungenesse crab place” … that’s gotta be worth something …

That is worth more than I can express.

Those that get it…the view as the ferry enters Alert…the simple solitude of Cape Scott, the old abandoned orchards in the middle of the bush…the colour of the sunset over Kye Bay…non stop Snowbirds, all at a discount…the discount being I don’t need a mug of Metamucil, handful of Xanax and a 50-50 shot of vodka and oj in the morning to face my commute.

Travelled up there for the first time last fall … loved it … my only regret was not having a beer in the Lucky Logger pub. Did have a coffee in the Woss Vegas cafe though. Won’t miss it next time.

#101 Ronaldo on 04.18.16 at 11:09 pm

#33 Vic Girl on 04.18.16 at 7:06 pm

”sorry…
Some people who bought in 08 WERE pretty miserable….”

Maybe not if they had a variable rate mortgage which dropped from around 4.5% to in some cases 1.75% as in my sons case. His interest costs dropped in half and most of his payments went into principal thereby nullifying the drop in house price which recovered a few years later. His mortgage is still variable and his payments are far less than what he could rent the place for and his mortgage has been greatly reduced. That’s 8 years of super low interest rates. Now the value of his house has risen considerably from when he bought. So you see, it’s not all doom and gloom out there depending on where you live.

#102 Gary on 04.18.16 at 11:16 pm

Re 13 Yank in BC
IF you want to talk about crumbling messes, USA has numerous US cities including Detroit, Dayton, Cleveland, Gary, all of Appalachia, Virginia, Kentucky, I could go on…

#103 BOOM! on 04.18.16 at 11:24 pm

Flopper-

M64 WI is me… sorry, I keep forgetting the tag.

Thinking about the upcoming elections. Should Donald Trump win his bid for the white house, an unprecedented event will take place. It will be the First time a Billionaire has moved into public housing, recently vacated by a black family.

Weird… Stay tuned, it can only get more weird.

M64WI

#104 Hotdogs from Heaven on 04.18.16 at 11:26 pm

#89 cramar on 04.18.16 at 10:01 pm

Like beauty, the best place is in the eye of the beholder. I love it here in Leamington, ON. Over 25c here today under constant sun, but you have to put up with a cacophony of migrating birds. A house (brick bungalow with attached garage) is for sale on our street. Asking $165k.

——————————————-
Tried to convince the wife that Leamington would be a nice place to retire to, but she wants to know what the health care is like down there? Any first hand knowledge?

#105 Trustee 1 on 04.18.16 at 11:32 pm

Mom’s email reads like a spam bot.
WTH is a “forever home” anyway? That sounds like something a kid would say.

#106 WUL on 04.18.16 at 11:39 pm

#40 Modern Millenial Man:

Re: Your query about a nifty place to live in with cheap abodes.

Dunno, but you might want to avoid the neighbourhood of West Hillhurst in my beloved Calgary.

80 cats seized from a house by the humane society.

#107 crossbordershopper on 04.18.16 at 11:55 pm

cash flow is everything, who cares where you live or sleep tonight, its a bed, hopefully comfortable thats it, from the bumb on the street to the queen of england its all about a comfy bed. under an umbrella on a beach or in a warm house in a nice area. i just want a comfy bed. for 600 bucks you can get a really good one.
million dollar house who cares.

#108 Mike in Edm on 04.18.16 at 11:55 pm

Edmonton (& Saskatoon) have been a bit odd lately. The rig rockets aka bro-dozers (That’s huge jacked up trucks that used to have truck nuts hanging off the back) have recently started appearing again. They were literally non-existent for the past year, but for some reason are now coming out of the wood work. I do know that some oil companies HAVE to drill this year. They’ve paid for their leases, so they will drill and I guess $40 oil is better than $30 oil.

Also, when I first moved to Edmonton (3.5yrs ago) I noticed ads for new non-downtown core condo’s being advertised for $210k, then before the oil crash, they were $190k, and now I’m starting to see them being advertised for $160k.

#109 For those about to flop... on 04.19.16 at 12:00 am

#103 BOOM! on 04.18.16 at 11:24 pm
Flopper-

M64 WI is me… sorry, I keep forgetting the tag.

Thinking about the upcoming elections. Should Donald Trump win his bid for the white house, an unprecedented event will take place. It will be the First time a Billionaire has moved into public housing, recently vacated by a black family.

Weird… Stay tuned, it can only get more weird.

M64WI

/////////////////////////////////

Hey BOOM,say Donny Rump does win I presume he will be forced to use Air Force One and Chopper One for security reasons what do you think he will do with his other toys?
He could be done in four ,but with his ego he,ll be thinking eight ….he might end up selling the 747 and the Trump Chopper or the Topper as he likes to call it.
( no he doesn’t ,but It sounds good!)
Maybe his family will use it but won’t they be affected by security as well?
I don’t think me and my wife will ever have this discussion ” Honey,should we sell the 747?”

M41BC

#110 West Coast on 04.19.16 at 12:13 am

speaking of Victoria….
“While many Victorians may not be aware or may not agree, the current method of disposal of our liquid waste is highly effective (environmentally and economically), and has not been shown in several studies to produce any significant measurable effects on the environment.”
http://www.rstv.ca/is-victoria-dumping-raw-sewage/

…………as they used to say back in the day..and still say in the province’s capital city………..”the solution to pollution is dilution…………..”

#111 senta on 04.19.16 at 12:13 am

Eric has a choice is a man or a mangina.

#112 Chris on 04.19.16 at 12:23 am

The only arguement for not buying would be that housing price will fall or if he wants to move within 5 years or so. But are we sure housing price is going to fall? That is the question nobody can answer. Even if rates do go up a bit, I think that price will probably flatline at best. Was driving near guelph line the other day. It is new houses and farm land next to each other. Guess that is the norm. Weird thing is it seems no matter how many new houses are built, there is an appetite to eat them up like that. Where do all these new home owners come from?

#113 BS on 04.19.16 at 12:45 am

Frank on 04.18.16 at 6:22 pm

Sure. But if Eric bought a house in his late 30’s (5 years ago) he’s have mortgage payments equal to his rent. Still have $300K in the bank and have $400K in home equity. Plus the comforts of home ownership: want to hide the cables to your TV? Cut a hole in the wall, it’s yours. Need more towel space? Build shelfs in your bathroom.

Frank I will correct you on a few things:

1. Buying 5 years ago would cost you more than renting then and now.

2. Owning a home is not comfort. More of a pain than renting in so many ways. I have done both.

3. You can hide cables in the wall of a rental and put up shelves. I have done both in my current rental. Filling a few holes with drywall mud takes 5 minutes upon leaving. You would have to do the same if you sell a place you own. In most cases when you sell you get a list of repairs the buyer wants done which can add up to 10s of thousands. Then you pay tens of thousands more to a realtor. Then 10s of thousands more in transaction taxes to buy a new place or 10s of thousands to get out of your mortgage early.

Frank please just go buy a house so we do not have to read your daily whining. Once you do buy you will realize your life is just as crappy owning as it is today renting, just you will have less money and less flexibility.

#114 WalMark of Sadkatoon on 04.19.16 at 12:48 am

Why someone would want to be a landlord when they could just sit back and collect stock earnings with less outlay is a mystery to me.

and your real estate knowledge reflects that.

thanks for the admission.

#115 My Life is a Pile of Shit on 04.19.16 at 1:02 am

Never mind the “net loss of 14% on your investment if you stayed in cash,” what about the shame? In a recent episode of Mr. D, titled Gerry turns 40, Gerry lamented he failed to become a homeowner by the age of 40 (a goal he made when he was 30). It was said so casually that it is obvious being a homeowner in our society has a redeeming quality that requires no explanation, like having a job. For example, one can say to his mother-in-law, “I’m far from perfect, but at least I have a job,” or “…at least I own a home.” Owning a home is no more a point in life than getting married and raising children, but convincing our society of that is harder than convincing our society that Jesus Christ is no more real than Superman.

#116 BS on 04.19.16 at 1:06 am

ILoveCharts on 04.18.16 at 6:34 pm

To be fair, putting 100% of his assets in a portfolio is not incredibly diverse.

Huh? A portfolio is a collection of assets. The diversity of the portfolio when buying ETFs is unlimited. A few ETFs could diversify you with thousands of stocks and bonds across all world economies, industries, currencies and would include real estate. On the other hand you could put everything into one house, tied to one economy, valued in one currency, subject to taxation just for owning it and instead of paying you dividends it costs you to maintain it. It also has no liquidity and cost huge fees or taxes to buy or sell.

#117 Ponzius Pilatus on 04.19.16 at 1:40 am

Smokie is back.
Let’s roll blog dawgs!

#118 Spaccone on 04.19.16 at 1:44 am

Holy crap people are weak. The real estate hives in my Italian mom breaks out several times a year (especially when her co-workers talk about jumping up the yearly real estate ladder) despite knowing I have never and won’t break or entertain for a second the thought of “investing” in a condo or buying a McMansion with her as an “investment”/to rent out (she makes min wage; approaching 60; majority of worth in a paid-off McMansion). This from a lady who grew up in stone housing in Italy with no electricity, on a hill on almost a 45 degree angle, small hole in the roof in each room for lighting that mice would peak into, and that 10-15 years ago looked like rubble or bombed out houses in a warzone and was being used to raise chickens, goats, etc for many years etc.

#119 Frank on 04.19.16 at 2:44 am

People don’t seem to understand how high rents are here in Vancouver. They make prices not seem as insane as you think. 30+ ratios? Sure in the odd house that’s a ways out but for centrally located townhouses and condos the ratio is much tighter. Not the make believe sub 15 that hasn’t been seen in this country in a decade but closer.

1 bedroom:

http://vancouver.craigslist.ca/van/apa/5508209985.html

For sale:

https://www.realtor.ca/Residential/Single-Family/16782931/206-1618-QUEBEC-STREET-Vancouver-British-Columbia-V6A0C5

#120 Robert on 04.19.16 at 3:03 am

Dear Mom, you were right 15 years ago and continue to be right now and for the foreseeable future. CMHC will continue to bankroll sub primes, multiple property investors, foreign landholders with no change in sight. Interest rates will continue to be held down by Poloz and co. Banks and credit unions will continue to shovel money out to keep the bubble gently inflating. Waiting is, and will continue to be an exercise in futility. Common sense really doesn’t apply while floods of foreign capital continue to skew the west coast market. Tell your son that yesterday is gone; now is the time to jump in for the short term windfall gains. Gold rush fever is alive and well on the west coast, fortune favors the bold.

#121 nubbers on 04.19.16 at 3:04 am

Mark’s Mum’s ‘Forever House’ already has ‘only ever increased in value’.

From this point on, it is the Forever Mortgage that will only ever increase in value.

#122 juno on 04.19.16 at 4:14 am

It blows me away to see all these old guys pressuring the young ones to shackle themselves with a house with huge debt.

My secondary studies was Psychology (or what I called common sense)

In the boomers days, a person would change their careers at least 3 times in a lifetime. There was always the mid 40’s crisis where a person would try to relive (s)he/it youth.

They would be married in their mid 20’s and buy a house closer to 30 years.

Today the ads are aiming at 18 year olds fresh out of high school and not even educated to make a living . With the buy now or be priced out forever. I expect mid age crisis to be in the early 30’s where most of these youngsters never really lived life. Instead they are expected to be paying off their 200 year mortgage agreements with the back

#123 J on 04.19.16 at 4:51 am

You can either rent the money to own or you can rent a place to live. I prefer to cut out the middle person, the bank, from the equation. I rent from the source.

#124 nubbers on 04.19.16 at 5:33 am

Oops, I meant ‘Erics Mum’ earlier.

Trustee 1 @105
Mom’s email reads like a spam bot.

Good point, the email is exactly what a realtor would write. There is no way his mom wrote that, unless she is a realtor herself, which I doubt, because a realtor would probably not prey on their own offspring.

I think someone gave her that text to cut and paste into her email.

#125 ROCK BEATS PAPER on 04.19.16 at 5:35 am

Shots fired!

#126 saskatoon on 04.19.16 at 7:10 am

95% chance: government workers.

if so, disgusting.

if not, well done.

#127 maxx on 04.19.16 at 7:35 am

Outstanding reply Garth. Can’t ignore this one.

These idiots fell ass backwards into a phenomenal son and superlative spouse. They ought to be spending their time singing their praises to the world at large rather than plotting how to force a mortgage down their throats. Strange definition of parental love.

Eric and his wife will no doubt be multi-millionaires when they retire and may very well snap up a vastly superior “forever house” later on – as in, at a time of THEIR choosing.

These “keeping up with the Jone’s” morons have not yet twigged that Eric is far and away leagues ahead of mythical Jonesy.

“forever house”. As if, in today’s world.
Cloying, chocolate box, mess-with-their-heads imagery, designed to move people’s attention away from the realities of a debt millstone.

Mom and dad: if you are incapable of support, leave them in peace. They’re doing just fine without your neurotic interference.

#128 fancy_pants on 04.19.16 at 7:42 am

Mom’s had 6 years of told you so already. And witht eh future so bright, why would she remove the rose colored glasses? it’s always sunny. clouds, what clouds?

don’t get all TANGLED. As Rapunzel’s mother has told, “Mother knows best, listen to your mother…”

#129 Renter's Revenge! on 04.19.16 at 9:05 am

Do any blog dogs know of any evidence that housing in Canada is simply more expensive to build than in the US (due to higher materials or construction costs, lower builder productivity, etc), resulting in higher price to rent ratios on average than in comparable US cities?

Usually we hear rules of thumb such as “a house should cost 3 times your income”, or “a rental property should cost 100 times monthly rent”, but maybe those ratios don’t apply in Canada?

Also, would the recent housing boom have anything to do with higher construction costs (i.e. construction workers demanding higher wages due to increased demand for their services)? And will those costs (wages) drop if the housing boom slows down (demand decreases), resulting in cheaper new houses during the downturn?

#130 lee on 04.19.16 at 9:11 am

#119 Frank,

With 20% down it will cost the owner $4,500 a month to carry that one-bedroom. Get back into your Audi.

#131 gut check on 04.19.16 at 9:26 am

@ #105 Trustee 1 on 04.18.16 at 11:32 pm
Mom’s email reads like a spam bot.
WTH is a “forever home” anyway? That sounds like something a kid would say”

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

when someone says ‘forever home” my mind hears “jail cell”

#132 cramar on 04.19.16 at 9:30 am

#104 Hotdogs from Heaven on 04.18.16 at 11:26 pm
#89 cramar on 04.18.16 at 10:01 pm

Like beauty, the best place is in the eye of the beholder. I love it here in Leamington, ON. Over 25c here today under constant sun, but you have to put up with a cacophony of migrating birds. A house (brick bungalow with attached garage) is for sale on our street. Asking $165k.

——————————————-
Tried to convince the wife that Leamington would be a nice place to retire to, but she wants to know what the health care is like down there? Any first hand knowledge?

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

I’m not sure what you are specifically looking for. There is a hospital right here in the city. Anyone who needs major surgery gets shipped off to Windsor or in the case of cancer/heart disease to London. But then everyone in southwestern Ontario with these major issues get sent to London anyway.

An elderly neighbour was taken by EMS to the local hospital with a diabetic crash, and they stabilized her, with lots nursing and CCAC follow-up, Now she is at home and doing good with 3X/week CCAC nursing visits.

The main concern might be getting a doctor. A lot of people just go to the walk-in clinic across from the hospital. But you might have to wait an hour or two. We put in for a doctor and it took almost a year before they said there is one available down the road in Kingsville. That is not a big deal since we go to Kingsville often anyway, since it is less than 20 min. The bonus is there is a blood clinic next to our doctor, and it is beautiful. Never waited longer than 10 min (several times zero). The clinic here in Leamington usually has long wait times.

My dentist is two blocks away, and you easily can get an appointment usually the next day. The dental surgeon I was sent to was incredible. A hundred times better than the arrogant butcher I had in Kitchener. My chiropractor is 3 minute drive away and is superb.

Bottom line is that I have zero complaints about the health care here.

M69ON

#133 salonist on 04.19.16 at 9:41 am

rent your car?

Peer-to-peer car rental marketplace Turo enters Canadian market in first international expansion

http://betakit.com/peer-to-peer-car-rental-marketplace-turo-enters-canadian-market-in-first-international-expansion/

#134 Tony on 04.19.16 at 9:53 am

Gold and silver jump one day late. On the yuan news that has already been news for weeks gold and silver jump not on Monday (the day before) but unbelievably on the next day Tuesday.

#135 Westcoast Woman on 04.19.16 at 9:54 am

“Forever home” is the term used when we got our cat from the SPCA, as in we were giving the cat a home forever. Home is where his food is, don’t think he cares if it’s a rental or owned!

#136 tkid on 04.19.16 at 9:59 am

Dear Eric,

are you sure your mother’s email address hasn’t been hijacked by a spambot? That’s the oddest email ever sent.

Get her to install an anti-virus and get her ‘puter scanned.

tkid

#137 Noel on 04.19.16 at 9:59 am

I think Eric’s job would be the big determination of whether he should buy or not.

There isn’t much going on for young professionals in Victoria outside of healthcare and the government, so if he’s not in one of those professions he’ll probably be moving on to a bigger city to advance his career before 25 years.

Either way, he’ll be fine whether he buys or rents. Guy has huge stacks of cash for someone that age.

#138 james on 04.19.16 at 10:21 am

#30 Smoking Man on 04.18.16 at 7:02 pm

Love the pic. Especially the heals.

The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. The micro bakini that seams to be in fashion around also helps.

Mind you, don’t know if I can erace the memory of that 60 year old wearing one. She was pretty hot for her age but it is so wrong….especially her tattoos.

Love American people. They give no shit.
……………………………………………………………………….
Go have a beer and cool down you old fart! Sit by the pool with your old hag and reminisce about the good old days when you used to have hair and your own teeth.

#139 Sean on 04.19.16 at 10:23 am

Garth,

You gotta admit there are benefits to owning a home. I’ve rented for 10 years now, wish I could own something. I only got a career and money when the housing market was well out of reach for me. It would help to have our own home with kids in the picture. It would be great to design and buy furniture that we know will stay that way for a while.

Are these the worst income to purchase or rent to purchase ratios you have ever seen? Has it been worse in other major cities? Will it level out….

#140 RG on 04.19.16 at 10:33 am

There comes a time in every man’s life where he has to tell his mother to F off. For Eric, that time is now.

#141 Katherine on 04.19.16 at 10:36 am

Thank you.

#142 timpieter on 04.19.16 at 10:44 am

By the powers granted me by who knows who, I am officially adopting to you all the kids who need a sensible dad to parent them.
Your letter is a keeper, thanks

#143 rainclouds on 04.19.16 at 10:53 am

Given the debt to income ratio, Canadians are probably worse off than Americans

http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/

#144 bill on 04.19.16 at 11:18 am

eric – do not listen to your mother….
in vest your money wisely as per Garth.

#145 Snoopy on 04.19.16 at 11:36 am

Agent who still hopes we drop our 1500$ rent for a condo purchased sent us this today:

“Good Morning! Spring is here and along with it comes new a new Map. Big news this quarter: according to our calculations, for the first time ever all neighbourhoods in Central Toronto broke the One Million Dollar average!”

The pressure is increasing, even for the most of hardcore renters.

Everyone at work is convinced in 10 years their poopy Toronto neighborhood will gentrify and their house will go up 30%.

I’m starting to believe it.

#146 Mark on 04.19.16 at 11:45 am

“Do any blog dogs know of any evidence that housing in Canada is simply more expensive to build than in the US (due to higher materials or construction costs, lower builder productivity, etc), resulting in higher price to rent ratios on average than in comparable US cities?”

I’m not sure that the higher cost to build in Canada (I don’t have a study or anything to cite, but I generally agree with the concept on less efficient supply chains and the need for more insulation/HVAC) would necessarily result in higher P/R (P/E) ratios in Canada.

What it does appear to result in is less per capita consumption of RE. As Canadian houses tend to be smaller on average.

The Canadian stock market tends to have a slightly higher long-run P/E than does the US stock market. Much of this is derived through the extreme cyclicality of certain sectors that tend to be statistically over-represented in the Canadian markets, particularly the resource sector (and gold) exposure.

In an earlier reply to Troll, I pointed out that the “rule of thumb of 100X rent” was based on RE having a valuation similar to that of the stock market’s long-run average. So if Canada has a higher long-run P/E ratio, then a slightly higher long-run P/R ratio on its RE is probably perfectly acceptable. Of course, there’s absolutely no justification whatsoever for the current nonsense of having P/R / P/E ratios on RE being right in crazy land.

#147 TRT on 04.19.16 at 12:08 pm

USA going into recession. The ‘fools’ waited too long to raise rates and now they can’t.

Not really fools as they knew exactly what they were doing.Now to keep the rich rich, more QE.

Cant have equity and bond markets reset…now can we.

#148 Bram on 04.19.16 at 12:15 pm

#129 Renter’s Revenge! on 04.19.16 at 9:05 am
Do any blog dogs know of any evidence that housing in Canada is simply more expensive to build than in the US (due to higher materials or construction costs, lower builder productivity, etc), resulting in higher price to rent ratios on average than in comparable US cities?

Not sure about the rest of Canada, but in Vancouver the construction costs play almost no role.
Even if the house is brand new, large, and luxurious, almost all the value is in the land it stands on, not the building. I don’t think I’ve ever seen a BC Assessment case in YVR where the building was worth more than the land. 33′ lots now go for $1.5M even in East Van. You’ll be hard pressed to spend even half that on the construction of a house that fits on a 33′ lot.

But yeah, construction is probably more costly. Permits must surely be more expensive in YVR than in the US. But overall, that is not where the bulk of the money goes in Vancouver.

But in regions with low land values, you may be right though, and construction costs could be a factor in this.

Bram

#149 For those about to flop... on 04.19.16 at 12:21 pm

132 Cramer M69ON.

Hey Cramer ,I just want you to know when I said ” show me you gap code ” I wasn’t singling you out ,I was asking other people as well.

I remember a couple of times in the past we have written each other and you helped me understand what happened with Avro in particular.

I respect people that are older than me and don’t mind when they talk about ” the good Ol days” as that shaped who they are today.

Thanks for your support and I wish you good health…

M41BC

#150 tkid on 04.19.16 at 12:28 pm

Snoopy, the market in Vancouver won’t correct until you or I buy a house. Until then, prices will continue to skyrocket.

#151 Smoking Man on 04.19.16 at 12:35 pm

#138 james on 04.19.16 at 10:21 am
#30 Smoking Man on 04.18.16 at 7:02 pm

Love the pic. Especially the heals.

The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. The micro bakini that seams to be in fashion around also helps.

Mind you, don’t know if I can erace the memory of that 60 year old wearing one. She was pretty hot for her age but it is so wrong….especially her tattoos.

Love American people. They give no shit.
……………………………………………………………………….
Go have a beer and cool down you old fart! Sit by the pool with your old hag and reminisce about the good old days when you used to have hair and your own teeth.
……

Hair is so over rated. Nothing like driving a rag top in the desert doing 130 mph on hwy 375 in Navada, the aero dynamics on a bald head are incredible.

Shave it and try it. Feels great.

#152 BOOM! on 04.19.16 at 12:50 pm

Dear Eric-

Tell your mom to MYOB. I don’t know ‘IF’ Real Estate will work for your generation as well as it has for her generation, and neither do you?

What I CAN TELL you is this is not the time, or price level to be entering into that marketplace as a 1st time buyer.

Will there EVER be a time to purchase RE in Vancouver or, Toronto. Yes, but THIS is probably closer to time of error, rather than a time of assured prosperity.

It is like my stock holdings. Why should I NOT sell some of those individual names bought in February when their price was beaten to a bloody stump? We just set a new HIGH marks yesterday, and they were up smartly today.

You are right, I sold some of them off today. They really didn’t fit the portfolio, and I made more than 25% on them in 2 months. Why be a pig? Pigs get slaughtered…

#153 tkid on 04.19.16 at 12:55 pm

Hey Eric, while my mom wasn’t as bad as yours is about promoting real estate, you can try my method for changing the subject:

Every time I saw mom I would talk non-stop about the real-estate crash in the US and if mom didn’t sell RIGHT NOW she risked her house being worth NOTHING …

Didn’t take long for mom to talk about something, anything else.

#154 proud papa on 04.19.16 at 12:58 pm

To finance “entitlement” programs, the government threatens force against the taxpayers who provide the money. Why are people who favor compulsion called humanitarians, while those who favor freedom are stigmatized as greedy?
-John Stossel

Once Congress establishes that one person can live at the expense of another, it pays for everyone to try to do so.
-Walter Williams

Once the premise is accepted that poverty is never the fault of the poor but the fault of “society”, or of “the capitalist system”, then there is no definable limit to be set on relief, and politicians who want to be elected or reelected will compete with each other in proposing new “welfare” programs to fill some hitherto “unmet need”.
-Henry Hazlett

#155 Renter's Revenge! on 04.19.16 at 1:00 pm

I appreciate the feedback, Mark.

“I’m not sure that the higher cost to build in Canada… would necessarily result in higher P/R (P/E) ratios in Canada.”

I was thinking higher costs to build would result in higher home prices, while incomes, which are similar to American incomes, would determine rents, which would result in higher P/R ratios for similar sized homes.

“What it does appear to result in is less per capita consumption of RE. As Canadian houses tend to be smaller on average.”

Sounds logical.

“So if Canada has a higher long-run P/E ratio, then a slightly higher long-run P/R ratio on its RE is probably perfectly acceptable.”

I was thinking the same thing, as in: Canadian real estate investors would be willing to accept higher P/R ratios than Americans because of lower opportunity costs here. Either that or Canadians are just generally bad at investing (bonus evidence: acceptance or ignorance of exorbitantly high MERs on mutual funds).

#156 Hot Albertan Money on 04.19.16 at 1:13 pm

They may be…

These are no normal vaping, can’t-find-myself, entitled, under-achieving, over-educated whiny young people.

But running to Garth for help with a ‘comeback’ for mom sure doesn’t like they’re too tough.

Eric…Be a man and talk to your mom yourself. Or ignore her.

#157 Hotdogs from Heaven on 04.19.16 at 1:21 pm

#132 cramar on 04.19.16 at 9:30 am

Thanks for the info on Leamington.

#158 NoNama on 04.19.16 at 1:23 pm

Parenting, now and then
https://youtu.be/nc2z1LS8fT4
Short interview with america’s worst mom
https://youtu.be/7ln_tYVoDpM

My son called 911 early in the morning while everyone was asleep (true), luckaly i answered a call back and no cars was sent our way. Just imagine parent/s sleaping while kids are up, how iresponsable… Un acceptable !!!
Am i a Canada’s worst dad? I dont think so!

#HelicoPterpareting #Geenes #America’sWorstMom
#PossiblyCanadaWorstDadOrSomethin’

#159 Anyone on 04.19.16 at 1:25 pm

I think its time for lawyers to start charging 5% of the cost of a property when they close a real estate deal, to be split with the purchaser’s lawyer of course.

#160 Maria on 04.19.16 at 1:26 pm

Yes! Loved this reply! Helpful to all of us :)

Thanks
A millennial

#161 WalMark of Sadkatoon on 04.19.16 at 1:27 pm

I pointed out that the “rule of thumb of 100X rent” was based on RE having a valuation similar to that of the stock market

comparing rental to entire stock market is silly

rule of thumb only for armchair RE investor. doesn’t work

post doesn’t even address relative CA and US construction costs

poster flaunts ignorance

again

#162 hope & ruin on 04.19.16 at 1:30 pm

Garth, I changed “Eric” to “hope & ruin” and then I mailed this letter to my mom. What should I give as a return address?

#163 WalMark of Sadkatoon on 04.19.16 at 1:39 pm

WalMark stop promoting 100x rent rule.

newbie blog dogs don’t know that your opinions aren’t based on experience or fact.

your causing harm

#164 The Globe and Mail on 04.19.16 at 2:47 pm

Should you repay student debt or save for a down payment? http://trib.al/KbqFXbZ via @globeinvestor

So you r telling me we actually need to pay the debt back?

#165 Mark on 04.19.16 at 2:53 pm

“I was thinking higher costs to build would result in higher home prices, while incomes, which are similar to American incomes, would determine rents, which would result in higher P/R ratios for similar sized homes.”

Interesting. My personal thought would be that the poor tend to devote a disproportionate amount of their income to rent (or imputed rent, in the case of home ownership). While the rich devote less income. So in a nation which is relatively ‘richer’, P/R ratios should be come to equilibrium at a lower level over the long term.

In the case of Canada and the USA, this is quite evident. The USA has experienced higher per capita GDP and per capita purchasing power than Canada for the past few decades at least. Hence, the P/R ratio has been structurally lower. After Canada goes through its RE decline, and experiences the cyclical upside of its long-term out of favour sectors performing well, it may very well end up with a lower P/R than the US for a considerable period.

comparing rental to entire stock market is silly

Not at all. All investments and asset classes are in competition with each other for investment capital. Asset pricing reflects the investment community’s perceptions on the future performance of an asset class. Various bubbles through the years tell us that the markets can occasionally suffer significant inefficiency, and that majority market participants can be proven to be spectacularly wrong.

#166 Van guy on 04.19.16 at 3:04 pm

The price/rent ratio for my sfh Cambie long term rental is 75.

M51BC

#167 Sean on 04.19.16 at 3:09 pm

Do property taxes increase based on what houses are selling for at these crazy percentage increases each year? Like you would be paying 15% more YOY the way houses in Toronto appreciated?

So you paid 700k last year, now your house is worth 800k.

$4,939.23 vs $5,644.83

Cash flow must start getting tight even if on paper you are much richer.

#168 maxx on 04.19.16 at 3:23 pm

#30 Smoking Man on 04.18.16 at 7:02 pm

….”The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. The micro bakini that seams to be in fashion around also helps.

Mind you, don’t know if I can erace the memory of that 60 year old wearing one. She was pretty hot for her age but it is so wrong….especially her tattoos.

Love American people. They give no shit.”

Good on you S.M. – glad you’re feeling better and you’re quite right about the average American. They don’t give a crap and put others at ease because of it. Not like the average hushy-twittery side-glance wannabees north of the 49th, wary as hell of the cracks in the sidewalk.

#169 ch on 04.19.16 at 3:45 pm

Cant wait for the mild rebalancing in the RE market. Im aiming for about 2026 when interest rates are at 4%.

#170 Nemesis on 04.19.16 at 3:51 pm

#TuesdayMischief…

#MoonLandingsAreSo20thCent…

[SCMP] – China inches closer to making first human baby in space: Groundbreaking experiment shows encouraging results

“We are still left very much in the dark about the mechanism of reproduction in space. It is difficult to comment on the new findings…” said professor Tang Fuchou, a developmental biologist with Peking University.

http://www.scmp.com/tech/science-research/article/1937099/china-inches-closer-making-first-human-baby-space

#InOtherNewsReproductiveScience… #ChineseResearchers… #SuccessfullyRecycle… #DiscardedCanadianPrimeMinister…

[Xihua] – Premier Li meets former Canadian PM

“China attaches much importance to relations with Canada and appreciates current Prime Minister Justin Trudeau’s efforts to improve bilateral ties.” – Premier Li Keqiang

http://news.xinhuanet.com/english/2016-04/19/c_135294149.htm

#171 Failed Economics on 04.19.16 at 4:09 pm

Fair market value is what a willing seller agrees to pay a willing seller.

Right now – buyers & sellers are both detached from reality.

When people can’t afford to buy – they stop looking. When they stop looking – prices come down.

Hungry realtors who have not had a listing or sale in months due to the high competition in the industry will soon have to put their own homes on the market in order to pay their bills.

Wait and see……

#172 lost in Navada on 04.19.16 at 4:12 pm

#151 Smoking Man on 04.19.16 at 12:35 pm

#138 james on 04.19.16 at 10:21 am
#30 Smoking Man on 04.18.16 at 7:02 pm

Love the pic. Especially the heals.

The world is upside-down in CAD real estate. Madness beyond comprehension.

Feeling 100% better. Nothing like good old desert ultra violet sun rays to destroy any bad coddies. The micro bakini that seams to be in fashion around also helps.

Mind you, don’t know if I can erace the memory of that 60 year old wearing one. She was pretty hot for her age but it is so wrong….especially her tattoos.

Love American people. They give no shit.
……………………………………………………………………….
Go have a beer and cool down you old fart! Sit by the pool with your old hag and reminisce about the good old days when you used to have hair and your own teeth.
……

Hair is so over rated. Nothing like driving a rag top in the desert doing 130 mph on hwy 375 in Navada, the aero dynamics on a bald head are incredible.

Shave it and try it. Feels great.
…………………………………………………………………..
Where in the hell is Navada?

#173 The Notley-Nenshi Taxes on 04.19.16 at 4:52 pm

6.1% city tax increases coming to cowtown this year thanks to Notley and Nenshi… apparently our house prices have gone up!!…. city taxes have now risen >40% since spendshi was crowned king of cool

http://calgaryherald.com/news/local-news/notley-disputes-calgary-council-concerns-over-tax-hike

#174 Bottoms_Up on 04.19.16 at 5:25 pm

#167 Sean on 04.19.16 at 3:09 pm
———————–
No. Municipal property taxes increase based on how much they promise they will rise plus any increase in municipal expenditures. And as we’ve heard on here before, even if property prices are flat, the city can change the ‘mill’ rate and therefore still increase property taxes. The other part of the equation is assessed value, as determined by MPAC.

#175 Bottoms_Up on 04.19.16 at 5:36 pm

#136 tkid on 04.19.16 at 9:59 am
———————–
I actually think it is a very sweet email, showing that both parents actually are thinking about the well-being of their child. Unfortunately they are out to lunch in terms of logic and sound financial management.

A good come back email could be “Thank you mom for your consideration. If you and dad would kindly purchase a place for us, we would gladly rent from you. That way, you could be ensured of our capacity to have a forever home, while YOU get to benefit from the ever-appreciating property prices!!! Think about it mom, this opportunity is too good to pass up! And lord knows dad’s money is only making 1% in the bank….
Love, eric

#176 Bottoms_Up on 04.19.16 at 5:42 pm

#129 Renter’s Revenge! on 04.19.16 at 9:05 am
———————–
There’s been some excellent responses to your questions posted on here in years past, especially regarding the price and quality of trades. It is definitely cyclical and linked to supply and demand.

Also, Canadians earn more in absolute numbers relative to equivalent US jobs; with the exchange rate however, it might be similar.

#177 Bottoms_Up on 04.19.16 at 5:44 pm

#126 saskatoon on 04.19.16 at 7:10 am
—————–
You are describing and categorizing their success based solely on whether they work in the private or public sector? Now that’s disgusting!!

#178 spaceman on 04.19.16 at 7:58 pm

Nanaimo you can rent cheaper, but not in Victoria, Maybe the ration works in Vancouver but not here.

My assessment is $525,000, my mortgage is $1780/Month. My rent on this house would be 2000-2300/Month, how does it work out that renting is cheaper?

#179 M on 04.20.16 at 4:36 pm

That’s why we love you Gartho baby !