The landing

LANDING modified

So what’s your fav topic? You, of course. And if you ever doubt it, look at yesterday’s torrent of information spilled all over this pathetic blog by the better part of a thousand readers. Because the Amazons were so busy scanning comments for buried links to white power, porno or (the worst) cat sites, no exhaustive analysis has been done of the data dump.

Actually, none will be done, either. At least not by me. The point of asking about you was not to sell the list to Porsche dealers or Investors’ Group carnivores, but rather so we could share some insight into each other. A random scan tells me a majority of people own, rather than rent. The average family income level is at least three times the norm. There are a truly scary number of millionaires reading this, so watch your language. The range of occupations is vast. Some people, shockingly, do not own dogs. Plus, you’re generally young and horny.

“I grabbed some age data from the “Who Are You” post just for fun,” blog dog Dan wrote me.  “I took this from posts 1 thought 709.  It was fairly easy to parse out age data using automatic tools but ‘net worth’ and other info was too much work to extract in the time I was willing to spend.  I used 400 data points. They are a combination of the ages of respondents and their spouses. Most of them are between 25 & 50 with a peak in the mid 30’s.”

The minimum reported age was 25 while the max was 74, which yields an average of just under 42 and a median of 39 (almost exactly the national number). Here’s Dan’s chart:

READERSHIP AGE

If anyone with a particularly empty, vacuous life cares to comb through this heaping pile of info, organize it, parse it and chart it for us, then proceed. The results will be joyfully published here because, as you know, your fav topic is you.

$ $ $

Time for a quick update on the rolling-over real estate market, which is germane to the bloated net worth of puffed-up readers who list property in YVR and vicinity as a big hunk of their net worth. You might want to rethink that in the coming months. Or, better, bail.

Among the latest developments:

  • Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette since we have a massive housing bubble that (he believes) will blow up and take the country with it. “Debt to disposable income for consumers is 165 per cent which is much higher than it was in the U.S. at the top of our housing bubble,” he says. Dillian also debunks the myth that rich Chinese dudes have been responsible for the housing gasbag, saying instead it’s obvious from debt levels that Canadians themselves have been “stretching” to buy houses they actually can’t afford.
  • The sales number out of Vancouver continue to suck. They were down 51% in the first two weeks of August. Tomorrow we should know more. Will be ugly.
  • Canadians, slowly, are starting to realize this real estate romp may be coming to an end, suggests the latest survey from pollster Nik Nanos. The number of people in his Bloomberg-sponsored sweep who expect prices to decline has spiked by 8.5%, the most since this polling began three years ago. So 20.5% of people now think housing is pooched while 41% expect gains and 36 believe there will be no material change.
  • Alberta continues to suffer. CMHC is reporting a 52% increase in mortgage arrears compared to a year ago – loans on which no payments have been made for at least three months. The absolute numbers are still small, but the trend isn’t.
  • And housing analyst Ross Kay continues to beat the Drum of Doom. “There are transformative months in all housing markets and August will probably go down (unless interest rates are dropped) as the most transformative in Canadian history,” he said on Tuesday “Already $1.3 Billion is now pending removal from Vancouver’s market on transactions recorded the last 60 days. Mortgage debt has now reached our May forecast levels for July 30th closings, at a record 1.4 Trillion.” If realtors did not continuously mislead us with their stats, Kay argues, people would be seeing a 20% price decline.

Yup – balanced, diversified and liquid. The father, the son, the Holy Ghost. Soon everyone will know why.

158 comments ↓

#1 morry on 08.30.16 at 6:37 pm

Let us hope that after predicting a correction for over 2 years that it is finally coming around to kicking in.

#2 Victor V on 08.30.16 at 6:37 pm

Vancouver foreign buyers tax was the right move: Scotiabank CEO

http://www.bnn.ca/vancouver-foreign-buyers-tax-was-the-right-move-scotiabank-ceo-1.557998

Scotiabank CEO Brian Porter says the 15 per cent tax for foreign buyers of Vancouver real estate was the right move and an important one for the city.

In an interview with BNN Tuesday following the bank’s third quarter results, Porter said the B.C. government’s recent moves in the market – including the foreign buyer tax – are “appropriate given the dynamics in the market.”

“We’d be supportive of those actions,” said Porter.

“I don’t know if it’s the big move that’s going to cool or correct the market, but obviously the government was concerned,” he added.

“So, just the fact that they implemented it and the moral suasion behind that, we believe that’s important for that marketplace.”

#3 For those about to flop... on 08.30.16 at 6:42 pm

Can the cheap bums like me come back on the site yet?

Or is or still elite week…

M42BC

#4 Steve French on 08.30.16 at 6:43 pm

To dream.. the impossible dream… of being FIRST?

#5 Joe2.0 on 08.30.16 at 6:46 pm

20% decline.
Who cares.
Vancouvers market will always be desired globally.

#6 Victor V on 08.30.16 at 6:46 pm

Vancouver Real Estate Bubble Has Burst and Home Owners Are Panic Selling

http://canadianinvestor.com/2016/08/29/vancouver-real-estate-bubble-has-burst-and-home-owners-are-panic-selling/

#7 The Nature Boy on 08.30.16 at 6:46 pm

Trendsetting is a marvelous thing. By next spring the big picture into what we are heading for will become clearer, no doubt. All we need added to this all is the US Fed cranking up its rates once or even twice by then, but I doubt that…
Folks in Canuckstan have been living beyond their means for a while and our economy is a scam.

Yup… Can’t wait for spring of 2017.

—————-

Smokie: how much do you drink booze daily and when do you start? Noon?

#8 Smartalox on 08.30.16 at 6:50 pm

The next time you attempt an informal census of blog dogs, you should use a site like Survey Monkey; it makes it a lot easier to parse the data.

#9 Nero on 08.30.16 at 6:50 pm

BOC will lower…

Remember! you’re poorer than you think…

Pass me my fiddle.

#10 JO on 08.30.16 at 6:50 pm

amen to a sharp correction
Time to end the greatest debt based Ponzi scheme in history
Watch how crazy govts will get in the next few years
Learn the words: sovereign debt crisis, inflation, and neo fascism
All coming our way

#11 JSS on 08.30.16 at 6:52 pm

Yeah whatever…

in other “tummy rubbing” news -> Bank of Nova Scotia hikes dividend as third-quarter profit rises to $1.9 billion, credit loss provision declines

http://business.financialpost.com/news/fp-street/bank-of-nova-scotia-hikes-dividend-as-third-quarter-profit-rises-to-1-9-billion-credit-losses-decline

#12 KRM on 08.30.16 at 6:56 pm

For sale signs starting to pop up in the Edmonton burbs. Surprised it held out this long.

On another note, I hope the cartel doesn’t find a way to shut Zolo down. It’s about time the public has the tools to educate themselves.

#13 JRH on 08.30.16 at 6:56 pm

First!

#14 ET on 08.30.16 at 6:58 pm

I work as a marriage therapist in BC, and I have seen the number of couples in crisis increase by about a third over the past 3 months (compared to the past 15 years). So many couples are on the point of separation that I have had to hire an associate to keep up with requests. Interestingly, a colleague in Calgary saw the same trend, beginning in late 2014 and continuing to this day.

Many of the couples in crisis I see are stretched very thin trying to make payments on homes; others become stressed after paying more for a house than they wanted to. I think the anxiety over the high cost contributes to marital issues. So, another causality of the real estate bubble is deteriorating relationships.

#15 nat on 08.30.16 at 6:59 pm

Thank you Garth for tabulating some stats on the average age of the readers, however, I do feel some were inflating their net worths. Yes, the analysis of the real estate looks doom however, we are still waiting…it just doesn’t seem so far to happen..it seems like it is just small talk. Why won’t they do something similar in Toronto as they did in Vancouver?

#16 Victor V on 08.30.16 at 7:00 pm

https://www.thestar.com/business/2016/08/30/urbancorp-home-buyers-discouraged-by-court-ruling.html

A court has granted home purchasers stranded by the insolvency of Urbancorp the right to be legally represented in discussions with the companies buying four of the home builder’s sites that are being sold off in a restructuring.

But the 185 home buyers will have to pay for the lawyers themselves. The Urbancorp estate will not cover the cost of that representation, said an Ontario Superior Court justice on Monday.

The purchasers collectively paid about $15 million in deposits on Urbancorp’s Lawrence, St. Clair, Woodbine and Bridlepath properties.

#17 crowdedelevatorfartz on 08.30.16 at 7:05 pm

glad i rent

#18 Context on 08.30.16 at 7:19 pm

For those who have condos listed or are thinking of selling in Toronto to rent here is my tip. Rent with an established company who is in the business with a portfolio of apartment buildings. This will guarantee a renewal of a lease but go month to month based on the original lease agreement. Do not sell a condo to rent another condo as you will have no guarantee to occupy said property. Now when the bubble hits you can sit back and relax as it will take several years for a real bottom to hit with half price sales galore.

#19 common sense on 08.30.16 at 7:22 pm

#14 ET

Your post was an excellent set up for Freedom First.

#3 Floppette

Yes I guess it’s safe for us to be allowed back here, us peasants under 1 Million NW. Thinking of Gruel for supper tonight. How about you?

#20 Andrew Woburn on 08.30.16 at 7:22 pm

Thought for the day stolen from a Washington Post article by Monica Hesse.

7. Stolen from a friend on Twitter: “Anthony Weiner is proof that the Clintons don’t actually have people murdered.”

#21 Damifino on 08.30.16 at 7:24 pm

#5 Joe2.0

“20% decline.
Who cares.”

———————————-

Somebody with only 5% equity and a mortgage due soon?

#22 For those about to flop... on 08.30.16 at 7:24 pm

And housing analyst Ross Kay continues to beat the Drum of Doom. -Garth

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

Good to see Mark has a new nickname…

M42BC

#23 Brett on 08.30.16 at 7:26 pm

Guess I am outside the curve. Age 64, retired, sold the house,DB pension, savings/investments $4m. Zero consumer debt. Never paid a cent of interest to any credit card company…..could never afford their rates.
Very happy being in the minority…never had the inner need to conform. No dog at this point,cats are not even a consideration

My basic real estate belief…buy when everyone is selling, sell when everyone is buying. It is why we downsized when we did and why we have been renting for 2 plus years.

#24 IO on 08.30.16 at 7:27 pm

Garth, Would love to know your take on this article:
http://www.msn.com/en-ca/money/homeandproperty/vancouver-and-toronto-real-estate-markets-headed-in-different-directions-td/ar-AAigtCJ?ocid=spartandhp

#25 Karlhungus on 08.30.16 at 7:30 pm

Can someone explain Zolo to me? Why is it saying Edmonton price change is over 55% yoy?

#26 Chaddywack on 08.30.16 at 7:31 pm

Meanwhile this is what $1.1M gets you in one of the worst areas of Surrey.

https://www.realtor.ca/Residential/Single-Family/17318574/12560-97A-AVENUE-Surrey-British-Columbia-V3V2H4

My dad lives in that hood and he told me “My house is easily worth $800k and it won’t drop ever again, it might just stay flat for awhile.”

My brother bought a house there two years ago and he says “it has more than doubled” (based on what people are asking).

Even houses in some of the dumpiest areas in Surrey are now listed at high six figures…….I’m definitely the black sheep of the family being a renter who fled Vancouver for the prairies!

#27 For those about to flop... on 08.30.16 at 7:33 pm

common sense on 08.30.16 at 7:22 pm

#3 Floppette

Yes I guess it’s safe for us to be allowed back here, us peasants under 1 Million NW. Thinking of Gruel for supper tonight. How about you?

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

After study the poll numbers I have decided to have 89 cent Kimchi served in my finest polystyrene bowl…

M42BC

#28 Context on 08.30.16 at 7:33 pm

#16 Victor V: An entire project of fine homes in Essa is under power of sale.

#29 not 1st on 08.30.16 at 7:34 pm

Garth, that Jared due also said to sell your house and invest the proceeds in forex, short the TSX especially the banks and buy the USD2CAD with both fists.

Are you advocating that kind of extreme action?

#30 Rexx Rock on 08.30.16 at 7:37 pm

How insane is Vancouver?2bd 2th condos in Seattle for under $150,000 and 2bd 1bth houses for under $275,000.Vancouver wages must be 4x more than Seattle wages.Victoria wages must be at least 2x than Seattle.

#31 TurnerNation on 08.30.16 at 7:41 pm

Jared Dillian was a trader – I read his book – he recovered also (still a trader…) from
bi polar/depression.

….
From IE email dispatch:

“Canada’s mortgage insurance agency is reporting a 52% increase in the number of insured home loans in arrears in Alberta, as low oil prices weaken the provincial economy.

Canada Mortgage and Housing Corp. (CMHC) says in its second-quarter report that payments on 1,487 mortgages in Alberta were three months or more overdue as of June 30 — up from 978 at the same time in 2015.

Saskatchewan’s list of troubled mortgages is also up, to 529 from 392, in the same period.

#32 Doug t on 08.30.16 at 7:44 pm

Attention Kmart shoppers we have a blue light special in isle four – depends diapers two for one – if you haven’t sold your bazzilion $ house in YVR by now stock up

#33 james on 08.30.16 at 7:44 pm

#5

“20% decline.
Who cares.
Vancouvers market will always be desired globally.”

A particularly myopic and infantile take on the situation.

Who cares?

Perhaps people whose mortgage goes up for renewal when their house value has gone down 20%. Ooops! Surprise! Guess who might have trouble renewing their mortgage?

But no, that couldn’t possibly have effects that ripple throughout the economy. Impossible. RV sales in Phoenix did just fine when the US bubble popped. (Hint: lots of RV manufacturers laid off their employees).

Education these days.

#34 SoggyShorts on 08.30.16 at 7:46 pm

There were definitely some posts I’d like more information on yesterday… for example:
“Male 36 70k income 3m networth”
How?
You’ve only earned about 1.2M so far minus 18 years of living expenses. Lucky vanshack purchase in your early 20s?

#35 Ace Goodheart on 08.30.16 at 7:48 pm

Re: #1 Morry:

“Let us hope that after predicting a correction for over 2 years that it is finally coming around to kicking in.”

Garth’s been predicting a correction on this blog since March of 2008. So actually eight years and six months.

Real estate corrects roughly once every 10 to 15 years depending on the cycle, so he’s going to be right eventually.

He is right about the whole income from a portfolio thing.

We spend most of our lives having the constant worry of not having enough money. We grow up with this, and live it throughout our child hoods, into our teens, it becomes very apparent during our formative years, particularly if we enter post secondary education, and then as adults we experience roughly another 30 years of it as we struggle to “get ahead”, pay off our many, many debts, work on 25 year payment plans for houses many of us will never own, and look forward to some sort of fabled “retirement” that usually lasts about five to ten years, filled with medical problems and pain and hardship, before we finally pass on.

Life of course is not really like that and this is just a “set up” put together to keep everyone working and producing, for the benefit of a slight, sliver of upper upper class society.

If you can figure out how to own a house mortgage free in your 30s and also have enough invested that you can pull in 20 or 30k per year off of dividends and distributions, you will find yourself in the unusual position of being insanely happy, in a way you cannot imagine, pretty much every day of your life. You will actually enjoy work (because it gets you out of the house and you don’t have to do it for money, because you don’t really need money). You will work as much or as little as you please. You will take time to enjoy things like coffee, long walks, time with your spouse, your kids, little things like sitting in your backyard or watching birds in the trees.

It is actually possible (I’ve done it). The only thing to remember is avoid debt, do as much as possible yourself, and try to invest at least 75% of what you earn after taxes.

#36 Pissed Off Neighbour on 08.30.16 at 7:55 pm

Jay, Bro, things are getting out of hand. I had 3 random people knock on my door today, wanting to have a beer with The Smoking Man. I appreciate everything you’ve done for my family, please stop sending strangers to our home. It’s not funny anymore. You need to grow up. Do you want me to send them to Lake Promenade?

Pissed off Friend.

#37 DJH on 08.30.16 at 7:56 pm

“The minimum reported age was 25 while the max was 74” Hey! Yesterday I signed in as older than 74 (#757 DJH). Am I too old to count?

#38 AK on 08.30.16 at 7:57 pm

“The range of occupations is vast.”
———————————————————
LOL. I would have never guessed that so many Lawyers were reading this blog.

#39 AR on 08.30.16 at 8:15 pm

Monkey survey is quick easy and informative and if you have less than 10 questions – free. Data is charted for you. Would be way easier and more reliable than parsing.

Also need to clarify how data is reported – was a mixed bag yesterday. How does someone value a DB pension? Add $1 million to your net worth? Assets – liabilities = net worth.

#40 Mark on 08.30.16 at 8:19 pm

Kind of bizarre that ‘economists’ would recommend shorting a currency that is soon to be in very high demand as the housing market deflates. After all, debt against Canadian RE is denominated in CAD$ and can only be repaid in CAD$. So if there’s a rush of people selling their homes, or rushing to liquidate other assets (ie: those Arizona and Florida “investments”) to pay down their mortgages so they don’t get foreclosed upon — that is extremely CAD$ positive.

Also, the demand truncation that goes with a Canadian RE crash is also very CAD$ positive as a significant chunk of Canadian discretionary spending ends up going into USD$-denominated items.

I do find it rather bizarre that an analyst who saw the US housing collapse basically send the USD$ to the moon, refuses to apply similar logic to the CAD$. “Its not rocket science”. Debt deflation is almost always currency-positive. It is the expansion of debt that suppresses a currency. Which is intuitively obvious as debt is effectively a ‘short’ on the currency.

#41 Mark on 08.30.16 at 8:22 pm

“BOC will lower…”

Even though I think the end game is ZIRP (and maybe even NIRP) in Canada, I’ll take the other end of that ‘bet’ until the CAD$/USD$ pair goes beneath $1.25. And there’s simply not enough time for that to happen between now and September 9.

#42 Karma on 08.30.16 at 8:25 pm

#5 Joe2.0 on 08.30.16 at 6:46 pm
“20% decline.
Who cares.
Vancouvers market will always be desired globally.”

People who bought within the last few months will care significantly. And those who will be retiring in the next few years will also care. Imagine buying a house for $1.03 million (closing costs included) with an $800,000 mortgage in May 2016. By the end of the year, if it dropped by 20% to $824,000 and the mortgage is about $789,000, then their equity dropped by a whopping 84.8% in 7 months (excluding potential closing costs on a sale).

The banks and credit unions would probably care too… And the neighbours… And the government…

#43 espressobob on 08.30.16 at 8:38 pm

funny how we view our lives based on assets and independent financial success and yet where and how is this better? there was a time when we didn’t play this dumb game and enjoyed life, socialized. people had fun not that long ago and had no interest in oneupsmanship or status.

who the hell cares about wealth when most are too busy chasing rainbows and are financially illiterate. we have a problem Houston.

is it our education system at fault, I’m not sure. but I’m scared for the future.

#44 Arctic Outback on 08.30.16 at 8:45 pm

The changing Canadian psyche as to how we view ourselves in the world has played a part in inflating our self-esteem and confidence in all things Canadian, including real estate. I blame the ‘Joe Canadian’ Molson beer commercial commercial way back when for sparking the frenzy. Seriously, Toronto priced higher than NYC? Vancouver at SolCal levels?!

#45 Life among the stars on 08.30.16 at 8:46 pm

Hey smoker dude… So it’s a safe bet that the wiener dude didn’t buy your encryption software!!! Or maybe it failed him!!! Bet he still needs it. Give him a shout!

#46 jess on 08.30.16 at 8:48 pm

…” how total bullshit gets to the top of Trending Topics, courtesy of an algorithm. And why it will probably happen again and again.

https://www.buzzfeed.com/craigsilverman/how-facebook-fell-into-a-fake-news-trap-of-its-own-making?utm_term=.eh8ZVejOQ#.qp9mw73Vv

#47 TurnerNation on 08.30.16 at 9:03 pm

Re. Yesterday’s blog: I can reveal my Uber rating, 4.7 out of 5. (Passenger)

#48 Smoking Man on 08.30.16 at 9:10 pm

#36 Pissed Off Neighbour on 08.30.16 at 7:55 pm
Jay, Bro, things are getting out of hand. I had 3 random people knock on my door today, wanting to have a beer with The Smoking Man. I appreciate everything you’ve done for my family, please stop sending strangers to our home. It’s not funny anymore. You need to grow up. Do you want me to send them to Lake Promenade?

Pissed off Friend.
……………………………………………………………

Shit, Sorry buddy, I made the mistake of sending people to the Newfie’s house to look at his lawn collection. It’s worth a shout out.

But I sort of took on your property, the cigarette buts on your front lawn, per say, if my book ever took off. I could just buy your place walk into the role. It’s 50% book, 50% Author persona. How was I suppose to know people would walk one block over and spot your truck. Sorry.

We’re going Laughlin in Sept, You guys are more than welcome to come with us. On me.

I’ll leave you out of it going forward.

Come to my place, I got your favourite brew in large quantities.

SM

Again sorry.

#49 Frank on 08.30.16 at 9:13 pm


http://canadianinvestor.com/2016/08/29/vancouver-real-estate-bubble-has-burst-and-home-owners-are-panic-selling/

No they’re not. Inventory is still barely above 9000. It was over 20K last time there was a correction in 2009 and that one was less than 15% and lasted 2 months. Call me when inventory hits 15K and we’ll talk.

#50 WalMark of Sadkatoon on 08.30.16 at 9:19 pm

Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette

I read where he thinks the usd/cad will go from 1.3 to 1.6 or 1.7

That would be awesome

Smart guy

#51 BOOM! on 08.30.16 at 9:24 pm

#3 #27 FLOPPETTE

Don’t worry about anybody’s numbers, except your own.
Hey, guy your only 42 or 43… you have TWO DECADES to stuff the TFSA and RRSP’s to the nuts. Don’t worry about things use an 80/20 split for now, change it to 70/30 when you hit 50, 60/40 when you hit 60. Change comes slowly in life, like grey hair / no hair. Don’t look at it, don’t fret, and for gawd sakes never change it!!

I feel like a pauper, so many making 6 figure incomes.

WE never hit a 6 figure income, except for ONE year, the year before I retired. That was with two people working full time! Oh, we’re only HS graduates, no inheritances.

Oh well. We have done OK by our wits, nit and half.

Were never really house horny, buying more house than we could pay off. That might of helped.

#52 Smoking Man on 08.30.16 at 9:26 pm

#50 WalMark of Sadkatoon on 08.30.16 at 9:19 pm
Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette

I read where he thinks the usd/cad will go from 1.3 to 1.6 or 1.7

That would be awesome

Smart guy
………………………

Better put your bet on soon, I’ll be tweeting on Trump’s account and saying shit like. “If Obama and Hillary’s economy is so good, why does the fed never spike rates.”

You know the fed is the kingpin in globalization. They hate Trump, if they think they can hurt him by spiking rates reinforcing the bull shit that the USA is rocking. The will spike and you will get rich.

I truly have a diabolical mind.

#53 OffshoreObserver on 08.30.16 at 9:28 pm

#14 ET on 08.30.16 at 6:58 pm

I work as a marriage therapist in BC, and I have seen the number of couples in crisis increase by about a third over the past 3 months (compared to the past 15 years). So many couples are on the point of separation that I have had to hire an associate to keep up with requests. Interestingly, a colleague in Calgary saw the same trend, beginning in late 2014 and continuing to this day.

Many of the couples in crisis I see are stretched very thin trying to make payments on homes; others become stressed after paying more for a house than they wanted to. I think the anxiety over the high cost contributes to marital issues. So, another causality of the real estate bubble is deteriorating relationships.

These are just some of the “off Balance Sheet” consequences housing Canada’s Housing Bubble.

As I raised in part of my post yesterday:

“[Future topic requests: 1/ The pros and cons of expatriating–and there is a dearth of information on this topic; and 2/ The latent liability of a spouse to divorce because as SFH climb in value, ergo, couple’s wealth, that then can strain a relationship.]

Much like the Liability of the mental health care/COST? of soldiers exposed to the “horror of war.”

#54 Smoking Man on 08.30.16 at 9:57 pm

By the way, pissed of nabor is right here with me now.

I only know vba good. Got no schooling but I can sell overpriced vacuum cleaners real good. He’s the genous inventor of our text encryption algo… My original sucked.

He deserves some recognition.. I’m not that smart.
Almost lost my only freind.

That’s it for tonight dogs. Eating some humble pie. And getting wasted with a buddy.

#55 I smell foreign money in the harour on 08.30.16 at 10:00 pm

At the root of the problem:

“Foreigners accounted for 20.9 percent of [blank-place-name] home sales in the year through June 2015, up from 7.9 percent in the 12 months ended June 2013. The foreign money has fueled an already fast climbing market: Home prices have risen 50 percent in the biggest cities since the end of 2008.”

sound like a familiar process? Guess which place is the focus of Asian foreign money catapulting real estate prices into the stratosphere…check it out: Bloomberg business week May 23-29, 2016, page 14-15.

#56 cramar on 08.30.16 at 10:05 pm

The stock market has already picked Clinton to win by a landslide:

http://www.marketwatch.com/story/the-stock-market-has-already-picked-the-next-us-president-2016-08-29

#57 Context on 08.30.16 at 10:09 pm

#48 I saw that house the other day with the flagpoles on the roof. The front yard looked like a yard sale or Halloween come early. Surely that huge bird cage was not real filled with parrots.

#58 For those about to flop... on 08.30.16 at 10:19 pm

Hey Boom,I was only joking.
I am not at the bottom of the telegraph pole where the dog pisses ,I am a couple of inches higher.

I actually stayed out of the poll yesterday because someone accused me of interfering with Inflewenza and Robax post numbers so I decided to take the night off when I saw Garth was having a poll.

I actually asked if we could have a weekly poll ,just a little sidebar,like ask a question on the topic of the week on Friday and post the results Monday but the boss made it front page and got a great response.

I knew it was going to draw a different crowd but i will be curious to see if they keep posting or go back to rolling in their millions.

I want to be comfortable in life but being filthy rich is not going to happen or something I obsess about.

I am not really interested in how much other people on the blog have as I am only trying to get more education on money matters to help myself out later on in life.

I ask questions on here all the time like my be grade question about which U.S state you would move to.

Other questions I wonder about you guys.

*If you had to move to another province which one would you choose?

* Do you think the U.S values its “special” relationship more with the U.K or Canada?

I have lots of b grade questions like this that I wonder what you guys think but I don’t wonder how much money you guys have as it is irrelevant to our online friendship.

Garth is the Headmaster and Inflewenza and Robax are the Vice Principals but they are not the only teachers on here…

M42BC

#59 Mark on 08.30.16 at 10:27 pm

“The stock market has already picked Clinton to win by a landslide”

The S&P500 hasn’t really been so hot this year. So what happens to it if “the stock market” is wrong, and Trump wins?

I truly don’t know the answer or even an entry point at analysis of such, so fire away.

#60 Oncebittwiceshy on 08.30.16 at 10:27 pm

#49 Frank on 08.30.16 at 9:13 pm

http://canadianinvestor.com/2016/08/29/vancouver-real-estate-bubble-has-burst-and-home-owners-are-panic-selling/

No they’re not. Inventory is still barely above 9000. It was over 20K last time there was a correction in 2009 and that one was less than 15% and lasted 2 months. Call me when inventory hits 15K and we’ll talk.

Frank, you are, unfortunately, going to learn the same lesson as the bears did when this market was being driven upwards and beyond. This is not a normal market, it is being driven by the media and the more the momentum the more the fear. Ironically both ways.

What the “brilliant” realtors are doing right now is advising clients not to list into an uncertain market. Wait for September. You can imagine the problem, come September, when a number of listings are added to a market where the “gullible” public is expecting price drops.

After all the media, manipulated by realtor smoke and mirrors, now know that it was only the Chinese that drove up these prices. Why wouldn’t they expect and get price drops.

My opinion, for what it’s worth, if you have an “investment” property …… list now and beat the long, slow painful drop down.

Good luck.

#61 Smoking Man on 08.30.16 at 10:28 pm

#57 Context on 08.30.16 at 10:09 pm
#48 I saw that house the other day with the flagpoles on the roof. The front yard looked like a yard sale or Halloween come early. Surely that huge bird cage was not real filled with parrots.
……

Guy plays alot of Johnny Cash, a good thing I guess .

Bit frightened to approach.. Knowing I made him famous.. He’s a renter. The owner of the property is another drunkin acquaintance. Not a freind.

My only freind, passed out on couch. Facing the lake right now. He’s a lush too, he starts at noon. I start at 9pm. Discipline bitches.

Light weight.

I called his wife. He’s sleeping over.
She’s cool with it. Fking bald as shit like me.

Hairless men, no respect.

Bald mens lives matter is what I’m thinking…

#62 Mel on 08.30.16 at 10:30 pm

Let’s hope this never ending nightmarish housing experiment promoted by CMHC, Bank of Canada, Government, out of control Realtors, and media.

Let’s not forget all of those horny buyers who could not control their out of control fear, and greed mentality.

Let’s hope, after all of this comes crashing down. Our Governments, Banks , will learn something and never allow this to happen again.

I hope, but that would mean hoping in people’s balanced characters. And that my friends, I do not have any faith at all.

Very bleak world, and country we live in today.

#63 Who luvs ya baby on 08.30.16 at 10:44 pm

#54 Smoking Man on 08.30.16 at 9:57 pm

By the way, pissed of nabor is right here with me now.

I only know vba good. Got no schooling but I can sell overpriced vacuum cleaners real good. He’s the genous inventor of our text encryption algo… My original sucked.

He deserves some recognition.. I’m not that smart.
Almost lost my only freind.

That’s it for tonight dogs. Eating some humble pie. And getting wasted with a buddy.

Jeez…. We now have smoking man stalkers … Isn’t Longbranch where all the sewage plants are??

#64 Who luvs ya baby on 08.30.16 at 10:47 pm

#52 Smoking Man on 08.30.16 at 9:26 pm

#50 WalMark of Sadkatoon on 08.30.16 at 9:19 pm
Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette

I read where he thinks the usd/cad will go from 1.3 to 1.6 or 1.7

That would be awesome

Smart guy
………………………

Better put your bet on soon, I’ll be tweeting on Trump’s account and saying shit like. “If Obama and Hillary’s economy is so good, why does the fed never spike rates.”

So you now work for Trump!.. trolling the twitterverse and greaterfool…
Aren’t you worried that Killary’s gonna put a hit out on ya!!??

#65 Flipping coin on 08.30.16 at 10:49 pm

#17 crowdedelevatorfartz on 08.30.16 at 7:05 pm
glad i rent

….

So is your landlord.

#66 meslippery on 08.30.16 at 10:53 pm

We now know a lot of rich and powerful people read
this blog.
May I just say to them Kelly Cutrara should have her own show.

The Afternoon Drive Starring Kelly Cutrara.

The Tonight Show Starring Johnny Carson.
Whats not to love?

#67 realtors are high school drop outs on 08.30.16 at 10:55 pm

Not sure why anyone would believe a single word from realtors are their mafia cartel. The cartel is fighting tooth and nail from being forced to make sales info public. The main reason is they would no long be able to lie about the health of the housing market/sales and thus it would crash. Remove CMHC and price would crash 50% overnight. Yes it would happen that fast. Some misinformed people would say removing CMHC would make it harder for people to qualify. The fact is removing CMHC would make it harder for sellers to sell and force them to lower prices to where people could actually afford it. Realtors the realtor cartel with the help of high school drop out mortgage brokers have bankrupt Canada and its economy. True scum of the earth

#68 Smoking Man on 08.30.16 at 10:58 pm

#61 Who luvs ya baby on 08.30.16 at 10:47 pm
#52 Smoking Man on 08.30.16 at 9:26 pm

#50 WalMark of Sadkatoon on 08.30.16 at 9:19 pm
Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette

I read where he thinks the usd/cad will go from 1.3 to 1.6 or 1.7

That would be awesome

Smart guy
………………………

Better put your bet on soon, I’ll be tweeting on Trump’s account and saying shit like. “If Obama and Hillary’s economy is so good, why does the fed never spike rates.”

So you now work for Trump!.. trolling the twitterverse and greaterfool…
Aren’t you worried that Killary’s gonna put a hit out on ya!!??
…..

She will have to find me first….

Not an idiot here like her….

#69 realtors are high school drop outs on 08.30.16 at 10:58 pm

Oncebittwiceshy #60

You are realtor scum who is in an all out panic as the housing bubble is crashing in Vancouver. The game is over for people like you.

#70 realtors are high school drop outs on 08.30.16 at 11:02 pm

Oncebittwiceshy #60 not responding to you

Frank #49 the post above is for you.

#71 Smoking Man on 08.30.16 at 11:03 pm

Smell of napalm in the morning worse than the smell of shit in long branch.

Technology. Haven’t smelt shit in a long branch in a long time. Tree huggers are usefull.

#72 DON on 08.30.16 at 11:10 pm

#14 ET on 08.30.16 at 6:58 pm

I work as a marriage therapist in BC, and I have seen the number of couples in crisis increase by about a third over the past 3 months (compared to the past 15 years). So many couples are on the point of separation that I have had to hire an associate to keep up with requests. Interestingly, a colleague in Calgary saw the same trend, beginning in late 2014 and continuing to this day.

Many of the couples in crisis I see are stretched very thin trying to make payments on homes; others become stressed after paying more for a house than they wanted to. I think the anxiety over the high cost contributes to marital issues. So, another causality of the real estate bubble is deteriorating relationships

*********************
Reminds me of the 80s. Lots of stress among couples. More coming…unfortunately.

#73 BS on 08.30.16 at 11:13 pm

Quebec Immigrant Investors must stay in Quebec now or have their application rejected. This change will affect local buyer psychology and take potentially 5000 wealthy buyers out if the YVR RE market every year. This could have a similar impact as the 15% tax. I would hate to be long YVR RE right now.

http://www.ctvnews.ca/video?clipId=940972

#74 ronh on 08.30.16 at 11:16 pm

Saw this – perfect

http://www.zerohedge.com/news/2016-08-30/greater-fool-theory-1-simple-chart

#75 DON on 08.30.16 at 11:19 pm

http://www.theprovince.com/business/mortgages/prices+vancouver+mansions+drop+realtors+expect+trend/12160924/story.html

Headline: “Prices for Vancouver mansions drop, but realtors don’t expect a trend”

Yup…sounds about right – in a realtor’s world a trend only happens when things are going up…Yikes. Next step for them would be to convince people to catch the falling knife.

#76 WalMark of Sadkatoon on 08.30.16 at 11:21 pm

#52 Smoking Man on 08.30.16 at 9:26 pm
I truly have a diabolical mind.

You do! And if Trump wins I’ll join your followers in the compound!

#77 WalMark of Sadkatoon on 08.30.16 at 11:22 pm

#59 Mark on 08.30.16 at 10:27 pm
I truly don’t know the answer or even an entry point at analysis of such, so fire away.

how is that different than everything else?

https://media.giphy.com/media/SUeUCn53naadO/giphy.gif

#78 Tony on 08.30.16 at 11:24 pm

Re: #29 not 1st on 08.30.16 at 7:34 pm

Buy the U.S. dollar before the election as we might even see job prints of 500,000 before the prints mysteriously turn negative very shortly after the election. Load up on gold and silver after the jobs report for October comes out and/or short the U.S. dollar.

#79 Tony on 08.30.16 at 11:29 pm

Re: #64 Who luvs ya baby on 08.30.16 at 10:47 pm

Push, pull with commodities making fresh new lows but America will start losing jobs monthly very shortly after their election putting sharp downward pressure on the U.S. dollar. If there ever was a time to buy gold and silver bars and rare gold coins it will be a few days after the jobs report for October comes out in America.

#80 meslippery on 08.30.16 at 11:29 pm

#826 NoName on 08.30.16 at 4:55 pm
Just seems be really rich or really poor middle class?
You will suffer.

#81 MissConstrued on 08.31.16 at 12:10 am

#34 SoggyShorts

“Male 36 70k income 3m networth”
How?

——————–
Maybe he invested well and is earning $70K on dividend income. That would be an easy 2.5% to pull off if you had $3M stashed away.

A lot of readers on this blog are doing well – congrats all. Keep up the good work. The fact that we are even reading this blog is a good indication that we are at least pointing on the right direction – hopefully.

#82 Daily Reader Occasional Poster on 08.31.16 at 12:12 am

AR Question about how one knows the value of a DB pension…Spouse and I were each sent letters from employer noting the value of our pensions. We didn’t ask for this information, it just showed up in our mailbox, hence we included it in Garth’s questionnaire yesterday. Our DB pensions continues when one party dies to last spouse standing. Formula is very basic…the annual pension X 35 years; naturally it continues beyond 35, til one stops breathing. Mine is indexed, spouse’s number will remain the same no matter how much inflation affects the future.

#83 For those about to flop... on 08.31.16 at 12:24 am

Heads up,it looks like some money is moving in India again…

M42BC

#84 Bram on 08.31.16 at 12:27 am

About yesterday’s blog comments…
I expected a $1B net worth entry from Doomer Gloomer.

That would move the average big time, but not change the median :-)

#85 Dude on 08.31.16 at 12:52 am

#35 Ace Goodheart
“There’s your problem right there!”

Hey, Ace Goodheart, are you part of the problem?

The only thing you mention in your post that has lead to your “insane happiness” has been your mediocre financial achievement. Really? Dude, that makes me laugh. Actually, for yourself, and for others with similar perspectives of the world, that makes me sad, sad for you. Go save a few lives in the OR. Do you really think it matters how much money one has amassed at this point? Trust me, when a person puts their life in your hands it really makes no difference how much money any of us has. Then spend a few years doing the same. Once you have achieved this goal, share your knowledge, wisdom, and patience with your first born. Build a beautiful family. Then, and only then, concern yourself with the “little things in life” such as diversified portfolios, rules of 90, 60/40 splits, ETFs, and the like. Go have a drink and listen to some Bob, read a little Smokey and Garth, but please, maintain a balanced perspective.

And…
#40 Mark
“as debt is effectively a short on the currency”
I think my financial literacy will have significantly been improved upon once I fully and completely comprehend that insightful statement.Cheers

#86 Freedom First on 08.31.16 at 12:52 am

#19 common sense

Yes. Men love women. Women love men for what men can do for them.

Men in our society are sitting ducks, even at the best of times. However, when money problems happen, and the women disappear, the truth is harder to hide. Court backed, in favour of women. Proven fact.

#87 Metaxa on 08.31.16 at 1:05 am

@ Flop:

You want some unsolicited advice on catching up with all those high net worth folks from yesterday?

I know squat about investing, like you, that is why I’m here…to learn.

But I do (did?) know how to make money in business.
I’ve been both helped and offered help. Had some failures, had some low performers, had partner issues, had everything but the closest to perfection for starting out, non rental housing, is one of either a laundromat or coin op car wash.

They are always up for sale because folks run them the wrong way (do it all themselves) and burn out. Usually pretty cheap too.

-Cash business, no one uses Visa to do the laundry.
That can mean a number of things depending on your ethics and the abilities of your accountant.

-You will always do better selling an inexpensive service to the middle/lower income earners over and over again than trying to sell high end stuff to the well off…always.
Clothes and cars both get dirty, fact.

-Open the hours they need you and can attend your place…means not early in the AM but later into the evening when spouse/boyfriend/whatever gets home, eats dinner, settles in. Then he or she can leave the kids with SO , grab the laundry and go get some alone time with…

-Good music and good TV…its 2016, right?

-Attendants: hire a couple of single mom’s on welfare so they can each look after the kids when the other is working. Decide what you want…yummy mommies or mommies with tummies…Pay them double minimum wage and tell them that if the place is run as you want and is profitable you will be increasing the wage by a buck each time, twice a year and will be very open to a medical/dental plan. To a single mom on welfare a med/dental plan is like a defined benefit pension to all the rich guys who post here…holy grail, eh? Point being you do not want constant staff churn…retention is what you want. And you want them invested in the place performing without you there constantly.

-Do not give them the keys to the coin boxes.

Buy a coin counter, you will grow to hate quarters, loonies and toonies, a counter/roller machine will postpone that hate.

-Clean and well lit.
Did I mention clean?

A car wash (five wand bays, one drive thu bay, two vacs, some vending machines for air fresheners, etc.) that I am familiar with puts real close to a half million into pockets, pre-tax, after all expense.

I helped original guy set it up, work through land assembly, etc, zoning, dealing with the stuff, his accountant watched and ended up making an offer, bought it before we even opened it and owns it ever since.

Half a mil, yearly as dividend income or better still repaying shareholders loans goes a long way towards improving your net worth line, eh?

Sorry, I don’t know how to make a short post…and there is so much more to write! lol.

#88 April. on 08.31.16 at 1:39 am

I feel so used. Now can we get on with you telling us how much we’ll need to retire? And any other deviously legal tax management you might care to share.

#89 Data on 08.31.16 at 2:55 am

Hi Garth,

1)It may be easier to setup a webform to collect your data.
2) A quick scan shows Canadians are saving at insane levels to have such high net worths vs household income ? It doesn’t make sense or a house is in play.

#90 Joe2.0 on 08.31.16 at 3:54 am

#33 James.
What I’m getting at is that there are far more people who have become surprised millionaires over the past 7 years because of what’s happened in our housing market in Vancouver.

It’s unfortunate that the market may take a dip but if you look at the affected areas during the U.S. Of A’s RE decline you will see that some areas remained strong and have since rebounded, Vancouver like San Fran I think will at the end of the day finish well…

#91 Jeremy on 08.31.16 at 3:56 am

Well, since I am too astute and bright to ever “invest” in “balanced portfolios” and left BC’s overcrowded real estate last year…. have real insights and real contacts…. I say only two things: US housing market will crash also by 60% and major funds are getting out of REITS as fast as they can.
2008 was just foreplay.

#92 Ppppp on 08.31.16 at 4:07 am

Re to #34
There were definitely some posts I’d like more information on yesterday… for example:
“Male 36 70k income 3m networth”
How?
You’ve only earned about 1.2M so far minus 18 years of living expenses. Lucky vanshack purchase in your early 20s?

Everything I earn went into stocks. There were a few years of 100k+ returns from both stock gain and job. Now 70k is pure dividend.

Oh yeah and of course, started and sold 3 businesses.

#93 Sam Boronovsky on 08.31.16 at 6:02 am

Starve the beast..leave Canada….keep as much of your spending in Canada to a tax free minimum. Isn’t it convenient that Juice Box Junior left town at the same time his storm troopers attacked the heart of the CDN economy…expect more of the same from Moon Pie Trudeau.

I fully expect Junior to be bent over and limping when he gets off the plane after our Chinese friends get through with him. When Donald Trump says he wants a better deal….the Chinese will have rammed a slate of issues Junior couldn’t comprehend. After all, Junior thought he was going to meet the Panda’s and maybe bring one home.

Did anyone find it a bit suspicious that Junior was met by Jack Ma and not a national representative of the government at the airport on a state visit? Juniors visit didn’t merit any attention or respect.

#94 NoName on 08.31.16 at 6:52 am

#80 meslippery on 08.30.16 at 11:29 pm

I am sure that ill do just fine, I put winter tires on every November.

#95 Ace Goodheart on 08.31.16 at 6:59 am

RE: #85 Dude:

“The only thing you mention in your post that has lead to your “insane happiness” has been your mediocre financial achievement. Really? Dude, that makes me laugh.”

Yup that’s all it took. Most people don’t see it. We spend our lives in debt, from the time we are born until we die. Kids are in debt to their parents, who work to pay for them. Once you are out of post secondary school with a career, there are student loans and lines of credit. Then it is time to start buying things. Go into debt with a house, cars, a cottage, credit cards, more and more debt, because that is what people are used to. Working hard to pay for things and always owing.

Yes my financial achievement is very mediocre. That is the point. It is easy to do. You don’t need a huge McMansion, a small house will do (smaller the better). You don’t need a huge income. When I travel, I use a backpack and hostels or a tent.

I do pretty amazing things in my job, which does change people’s lives and is quite difficult, but I do it because i want to, not because I have to. There is no slavery to a mortgage or debt payments. I invest almost everything I earn.

That makes me happy. If other people are more comfortable being happy with owning huge houses that they have million dollar mortgages on, then that is their thing I guess. For me, I like not owing anyone anything and having a monthly income that I don’t have to work for. Gives me complete freedom to do whatever I want. Which makes me insanely happy.

#96 IM in C on 08.31.16 at 7:17 am

@14 ET I think you’ll find that it is the stress of the real estate bubble that is exposing the cracks in relationships that would have otherwise been papered over

#97 Mr. Frugal on 08.31.16 at 7:45 am

#56 cramar on 08.30.16 at 10:05 pm
The stock market has already picked Clinton to win by a landslide:

http://www.marketwatch.com/story/the-stock-market-has-already-picked-the-next-us-president-2016-08-29

______________________________

Just imagine how surprised Wall Street is going to be when it’s a Trump landslide. Remember the suits hate surprises. Bet accordingly.

#98 White Crock BC on 08.31.16 at 7:48 am

Smoking Man on 08.30.16 at 11:03 pm

Smell of napalm in the morning worse than the smell of shit in long branch.

Technology. Haven’t smelt shit in a long branch in a long time. Tree huggers are usefull.

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

What was that? some kind of messed up Haiku?

#99 pBrasseur on 08.31.16 at 7:57 am

.#40 Mark

I do find it rather bizarre that an analyst who saw the US housing collapse basically send the USD$ to the moon, refuses to apply similar logic to the CAD$

What weird reasoning! Man it’s not the housing collapse that propped up the USD$, it’s the world-wide financial and economic meltdown that made the US (despite the housing and financial problems) appealing as a safety haven. With reasoning like that no wonder you so lost in la la land…

The situation for Canada is completely different, the logic and context not at all the same. First a housing meltdown in Canada is not going to choke the world economy nor provoke a world class meltdown, investors are not likely to seek more safe havens than now and Canada with its economic problems and low growth is not going to be more appealing than it is now, to the contrary, especially if growth and prospects are better in the south and elsewhere, which they are.

Canada’s economy is a credit mirage, when that subsides economic problems are going to make Canada less attractive for both foreign and local investors, especially when things pickup elsewhere, as a results the CAD$ will tank. It’s already happened, more to come.

#100 gut check on 08.31.16 at 8:14 am

Have I given it enough time yet?
Will you publish my posts, or are you afraid that I’m still too feisty? :D
If you’re not going to publish me could you at least do me the honour of putting up my name and then writing
BANNED
like you’ve done for the xenophobes?

cheers.

#101 crowdedelevatorfartz on 08.31.16 at 8:28 am

@#65 Flipping
“So is your landlord.”
++++++++++++++++++++++++++++++++++++

My “landlord” is a numbered company wholy owned by a REIT.
So…….chances are……. Im a part owner.

As Smoking Man would say….”Stay thirsty my fiend”

#102 Smoking Man on 08.31.16 at 8:28 am

Nothing like some good tin foil with your morning coffee.

Wondering if James will ever understand he’s a pon in the big scream of things.

http://www.prisonplanet.com/nigel-farage-rallies-planet-against-tyrannical-world-government.html

#103 Aggregator on 08.31.16 at 8:38 am

CANADA ECONOMY SHRINKS 1.6% IN 2Q VS. FORECAST 1.5% CONTRACTION

Ottawa better start spending fast or this economy is heading down the toilet.

#104 F.dover on 08.31.16 at 8:48 am

I might be trolling in the wrong place, I don’t equate wealth with asset as much as the bulk of 900 posters do.

Asset can allow wealth to flourish, but it can cloud the picture until death does you depart. People with more than enough asset to live happily ever after at double the poverty line are pissing in the wind and missing out on real life, which is the life of a dog, plain and simple.

12th annual Warf Rat Rally in Digby N.S. this weekend, 20,000 bikes to attend with 90% N.S. plates. That would be equivalent to 289,000 bikes at Port Dover with 260,000 of them sporting Ontario plates, when doing the math with provincial population figures.

Moncton Nationals car show last month, Canada’s largest also has disproportionately large numbers for a small regional population.

Some people in some places have gobs of $, while other people in other places have gobs of life. Just sayin….

The topic of who got the most dough in proportion to effort, should changed to who knows how to live now that they have it? Because the bulk of 900 posters have it, yet showed up to work again today whilst I lay here in the slot on my couch, actually tasting the coffee as I sip it, and think things over.

#105 F.dover on 08.31.16 at 8:56 am

#99 is right on. As I remember it, while I waited for the Dow to drop to 6000 ( which it did not), money from all over the nervous planet poured in to Wall St., and here we are at 18,000 for the same companies with worse dynamics. I Don’t expect world savings to land on Bay St. after the TSE tanks, so it probably will happen that way.
Everyone loves a fire sale!

#106 Ace Goodheart on 08.31.16 at 9:07 am

RE: #96 IM in C:

“@14 ET I think you’ll find that it is the stress of the real estate bubble that is exposing the cracks in relationships that would have otherwise been papered over”

These people are eff’d. I had no idea how completely people are mashing up their financial lives. To say it is scary or frightening is really an understatement and does not do justice to scary and frightening things. It’s worse than that. I have been talking to folks just to see what people have been up to. Have met people who’s financial stories would cure the most hardened gambler. Again, I get so caught up in what I am doing, that I don’t see what everyone else is up to.

Case in point: Two professionals, high income earners, 650K between the two of them. Should be swimming in money. Their after tax is like over 400k.

So what do they do? They buy real estate. Lots of it. 5 rental properties, over 3 million dollars in mortgages, minimum down on each one. Managed through a company (they never go near them).

Then, they build themselves a house. Purchase a lot at a premium price, in a gentrified neighbourhood, with a perfectly good house on it, which they promptly tear down then spend a year fighting the City for a variance (lawyer bills!).

Finally get their wish, build a McMansion. Oh did I mention, they already have a house with a big mortgage, which they don’t want but can’t sell for what they paid for it. So they rent that too (now four rental properties, all mortgaged to the hilt).

McMansion is finished, they move in. This thing has NINE bathrooms, twelve bedrooms, three kitchens, a fireplace in pretty much every room. Property taxes are insane (like 20K per year, they apparently count the fireplaces). This is for a family of four. House has two furnaces, three central air conditioning units. To replace the roof is like 100K because it is so large (a lot of roof shingles, which last 15 years so better start saving for when the inevitable happens).

House is built custom (which, if done in a “prime”, gentrified neighbourhood, means you’re paying a premium for everything). Of course this is also done with a multi million dollar mortgage.

Try working full time and cleaning nine bathrooms and twelve bedrooms and three kitchens. Yup, need a cleaning service.

So now these folks are having financial problems. With 650K income, over 400K after taxes! And for what? A house they never see in the daylight? How can a family of four use 12 bedrooms, three kitchens and nine bathrooms?

That is what is happening out there, while the smart ones among us are saving our money, investing and living frugally. People are absolutely nuts.

#107 Apocalypse2016 on 08.31.16 at 9:08 am

Breaking News!

CANADIAN ECONOMY IS IN COLLAPSE!!!!!!

Worst quarterly crash since the GFC, says StatsCan!

The Summer of Hell is still heating up :(

Real estate now ready to to plunge in Calgary and Vancouver, Toronto is next.

Horrible times ahead….get liquid, and if you need the capital, sell your real estate NOW for whatever you can get.

DON’T BE A GREEDY FOOL!!!!!

#108 drufgus on 08.31.16 at 9:54 am

Garth,

Thanks for getting back to the important stuff…..all the pretend millionaire stuff from yesterday was tedious.

Re. the “Former Lehman Brothers exec Jared Dillian is urging investors to short the Canadian dolarette since we have a massive housing bubble that (he believes) will blow up and take the country with it.”

what’s your call on the dollarette….I am thinking 1.60 by year-end for USD/CAD.

#109 Mixed Bag on 08.31.16 at 9:56 am

#87 Metaxa on 08.31.16 at 1:05 am

Thank you for this and your previous posts. This reader and spouse appreciate your unsolicited advice. Write as long a post as you’d like, as many times as you’d like.

#110 Sheldon cooper on 08.31.16 at 10:01 am

Ace Goodheart,

People aren’t dumb. They have fallen into the trap of consumerism. Nobody needs 12 bedrooms, not for a family of four. But I understand the pressures. My parents want us to buy a sfh. We have one child. I live in a 3 bedroom right now. Plenty for our needs. I like the fact that I know my neighbors, don’t have to worry about dealing with home emergencies on my own, etc. but still the pressure is there. Our mortgage is less than 10% of our income (we are like the couple you mentioned, high income earners) but also we have little debt other than the mortgage but lots of stocks that pay us increasing dividends. It’s nice to be financially free in our thirties and never have to worry about money for the rest of our lives. But the cost of that is appearing to be frugal. We don’t even have cable. One old car. One bus pass.

#111 F.dover on 08.31.16 at 10:17 am

#106 Classic example of – people will do the darnest things to make money, and then do the Darnest things with it. All while living in a first world country with so many opportunities to have a fun day everyday in bliss.

#112 Smoking Man on 08.31.16 at 10:19 am

#107 Apocalypse2016 on 08.31.16 at 9:08 am
Breaking News!

CANADIAN ECONOMY IS IN COLLAPSE!!!!!!

Worst quarterly crash since the GFC, says StatsCan!

The Summer of Hell is still heating up :(

Real estate now ready to to plunge in Calgary and Vancouver, Toronto is next.

Horrible times ahead….get liquid, and if you need the capital, sell your real estate NOW for whatever you can get.

DON’T BE A GREEDY FOOL!!!!!
……………………

Ah BOC rate cut next meeting. And a FED spike

In the mean time. LONG USDCSD
………………………………..

USDCAD CADUSD COST
1.31319 0.76157 195,602

Contracts 750 1,375,406
1.2948 100,000.00 97,113,469
1.3132 100,000.00 98,488,875

Ave Buy In 1.2948 195000 1,288,025 0.005
QTY Price At Risk P&L Next Order
50 1.2774 13000 179,075
100 1.2824 26000 307,850 1.2824
100 1.2874 26000 257,850 1.2874
100 1.2924 26000 207,850 1.2924
100 1.2974 26000 157,850 1.2974
100 1.3024 26000 107,850 1.3024
100 1.3074 26000 57,850 1.3074
100 1.3120 26000 11,850 1.3124
1.3170

#113 Renter's Revenge! on 08.31.16 at 10:34 am

#107 Apocalypse2016 on 08.31.16 at 9:08 am
“The Summer of Hell is still heating up :(”

Didn’t they have snow in Alberta last week?

https://www.theweathernetwork.com/news/articles/snow-in-august-heres-where-in-canada/71378

#114 not 1st on 08.31.16 at 10:38 am

Garth, I am afraid there is no balanced liquid diversified portfolio in the entire universe that is going to protect us from whats coming.

This sept/oct/nov the economy falls flat on its face, yellen goes back to her kennel, china wobbles, EU stumbles and all the central bankers go negative to keep it afloat for another yr.

And all those US job numbers you keep falling for are all in services, nothing value added.

http://www.cnbc.com/2016/08/31/adp-august-2016.html

And no a job is not a job.

#115 looniesindaboonies on 08.31.16 at 10:44 am

#40 Mark on 08.30.16 at 8:19 pm

Kind of bizarre that ‘economists’ would recommend shorting a currency that is soon to be in very high demand as the housing market deflates. After all, debt against Canadian RE is denominated in CAD$ and can only be repaid in CAD$. ”

With your lousy track record and constantly trying to talk up the loonie, I think I’ll stick with the experts…don’t be surprised if loonie drops 50% over the next 2 years.

#116 Context on 08.31.16 at 10:46 am

Smoking Man this house on the corner is a classic and if I lived next door could never put up a for sale sign as there would be no offers. The white dining room table on the front lawn with the five yellow chairs by the house is out of place just beside the giant bird cage. What are all those empty beer cans doing there? Do they party all night under the stars?

#117 Neil Armstrong on 08.31.16 at 10:47 am

Brother, can you spare a bitcoin? Here is your Daily Dose of Disruption: meet Ripple

https://www.youtube.com/watch?v=Q2YHhLkOO9g

18 months from now or less, the centre of the universe, Wall St., will no longer be the only financial clearing house. Not only the end of USD dominance, but also of US commercial banking monopoly.

#118 looniesindaboonies on 08.31.16 at 10:47 am

#41 Mark on 08.30.16 at 8:22 pm

“BOC will lower…”

Even though I think the end game is ZIRP (and maybe even NIRP) in Canada, I’ll take the other end of that ‘bet’ until the CAD$/USD$ pair goes beneath $1.25…..”

Don’t you mean USD/CAD? should we really listen to you?

#119 Tom on 08.31.16 at 10:50 am

#40 Mark on 08.30.16 at 8:19 pm
Kind of bizarre that ‘economists’ would recommend shorting a currency that is soon to be in very high demand as the housing market deflates. After all, debt against Canadian RE is denominated in CAD$ and can only be repaid in CAD$. So if there’s a rush of people selling their homes, or rushing to liquidate other assets (ie: those Arizona and Florida “investments”) to pay down their mortgages so they don’t get foreclosed upon — that is extremely CAD$ positive.

Also, the demand truncation that goes with a Canadian RE crash is also very CAD$ positive as a significant chunk of Canadian discretionary spending ends up going into USD$-denominated items.

—-

Truly, you have a dizzying intellect…

#120 WalMark of Sadkatoon on 08.31.16 at 10:50 am

housing collapse that propped up the USD$, it’s the world-wide financial and economic meltdown that made the US (despite the housing and financial problems) appealing as a safety haven.

He can’t see that. Admitted that himself. Has blinders on. That’s why his 2 year CAD bet against the USD failed. Now saying its a 30 yr bet to save face

Sad unemployed tap dancer

#121 Bytor the Snow Dog on 08.31.16 at 11:00 am

I have until the close of business today to quit my “cushy” govt job and commute my pension.

I have $1.1 million reasons to do so, and two reasons not to.

What I am going thru today is really making me think about it.

#122 not 1st on 08.31.16 at 11:19 am

#87 Metaxa on 08.31.16 at 1:05 am

That business needs to be set up in a large urban area and with the price of land and a building, you are over a million in, so all those quarters coming in will be mostly paying back the initial investment for a long time.

#123 Yech Juice Box Trudeau on 08.31.16 at 11:20 am

Jobs collapse, Junior in China while green blob thugs stall NEB hearings ( what a coincidence) GDP collapse, BOC say’s Trudys bread and circus giveaways will bolster ‘growth’.

Canada is in the toilet and headed for the pipe and Trudy goes on a tour of Asia. Will he take another two week holiday with the wife when the conversation gets complicated?

Will Juice Box Justin stand in front of a blackboard and read off another well rehearsed softball of how the space time continuum work for Canada differently than on the rest of the planet?

Sorry Junior, everyone in the room knew you were lip sinking…well maybe not the head readers over at the CBC.

#124 Dan on 08.31.16 at 11:37 am

#37 DJH

“The minimum reported age was 25 while the max was 74” Hey! Yesterday I signed in as older than 74 (#757 DJH). Am I too old to count?

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

Sorry about that DJH.

If you’d seen the dog’s breakfast I was confronted with even after separating out lines containing the word “age” or “Age” you’d forgive me for having missed a few pieces of data.

So yes, at 76, you are older than the maximum of 74 that I reported but I did not intentionally leave you out.

I did, however, intentionality leave out one single reported age of 90 which I considered an outlier that skewed the graph unnecessarily.

My analysis isn’t perfect for reasons already stated by myself and Garth but it’s still a worthwhile snapshot and reasonable representation of reported ages.

#125 Say What? on 08.31.16 at 11:51 am

Listen, shorting the Canadian housing market right now is not very smart. Looking at the latest GDP numbers you can only conclude that the interest rates in Canada have only one direction to go and that is down. People that have said, “Of course interest rates will go up” don’t know what they’re talking about. So, with such low rates way into the foreseeable future, people will continue to be able to afford that 165% debt ratio.

#126 Rifles on 08.31.16 at 12:06 pm

While a housing fall of c20% in YVR will be a huge hit to those with limited equity, the psychological canary in the housing coal mine will be those who have their houses paid for and poo-pooed the notion that such a move would disturb their equanimity (see some posts in this comments section). Daniel Khaneman and Amos Tversky (see “Thinking Fast and Slow” etc) showed that a loss hurts twice as much as a similarly sized gain brings pleasure. The good burghers of Vancouver who have become accustomed to one way pricing (ie up) may well start to think about this if/when the reality of the change sets in. For example, the ageing couple who thought they could stay in their house and pass the intact gain to their children may start to wonder whether that is the case. Their beneficiaries may also start to get the uneasy sense that maybe Mom and Dad won’t be the source of that windfall gain they were counting on, at least not to the same extent. Small (10-15%) moves matter in this game. If the For Sale signs spring up in 2017 and the potential for an NDP victory at the polls gains momentum the market will clear lower down. The hit to the overextended in this scenario is a given but the cries of the smug and greedy – the equivalent of the AAA rated paper in 2008 – will be truly telling. Find someone whose house is paid off and monitor their mood. It will tell you all you need to know.

#127 Wild Albertan Gonads on 08.31.16 at 12:15 pm

#112 Smoking Man on 08.31.16 at 10:19 am

#107 Apocalypse2016 on 08.31.16 at 9:08 am
Breaking News!

CANADIAN ECONOMY IS IN COLLAPSE!!!!!!

Worst quarterly crash since the GFC, says StatsCan!

The Summer of Hell is still heating up :(

Real estate now ready to to plunge in Calgary and Vancouver, Toronto is next.

Horrible times ahead….get liquid, and if you need the capital, sell your real estate NOW for whatever you can get.

DON’T BE A GREEDY FOOL!!!!!
……………………

Ah BOC rate cut next meeting. And a FED spike

In the mean time. LONG USDCSD
………………………………..

USDCAD CADUSD COST
1.31319 0.76157 195,602

Contracts 750 1,375,406
1.2948 100,000.00 97,113,469
1.3132 100,000.00 98,488,875

Ave Buy In 1.2948 195000 1,288,025 0.005
QTY Price At Risk P&L Next Order
50 1.2774 13000 179,075
100 1.2824 26000 307,850 1.2824
100 1.2874 26000 257,850 1.2874
100 1.2924 26000 207,850 1.2924
100 1.2974 26000 157,850 1.2974
100 1.3024 26000 107,850 1.3024
100 1.3074 26000 57,850 1.3074
100 1.3120 26000 11,850 1.3124
1.3170

Ok that looks just too easy!!! How much real dollars did you put down for that?

Don’t you never lose?? or you don’t ever post those :)

#128 Ferd Hasblatt on 08.31.16 at 12:15 pm

Proof that Canada has already entered a deep recession and the BOC together with the CBC and Liberal Party have been playing silly buggers with the numbers and blaming Ft Mac for the malaise while Ontario sinks us faster than Turdettes’ helicopter money sinks families further into debt.

Don’t believe the polls, I worked in public relations and marketing for years and can tell you honestly, it’s all bought and paid for, it’s all made up for whoever pays us to lie.

Articles in papers and magazines are placed there by paid for publicists, polls are ‘collected’ by people who work for who ever pays them. Has anyone forgotten how wrong polls are when elections are finally tallied? Polls are meant to influence the weak minds of undecided uneducated voters.

https://ca.news.yahoo.com/canadas-economy-shrinks-1-6-percent-second-quarter-123349049–business.html

Canada has become an experiment in post national suicide, the people haven’t figured that out yet. The globalists and the lackeys with some ambition towards making it big in the UN job circles ( Junior and Obama) are going to create havoc and entangle us in wars we can’t extracate ourselves from…all paid for by the likes of George Soros and business persons looking to overthrow the energy giants in Canada so as to smooth the road for themselves to grab massive subsidies for their own failed projects.

You’re at your weakest when your kids are crying for milk and you don’t have enough money in the bank to say no to the likes of Trudella.

#129 Context on 08.31.16 at 12:24 pm

#125 Say What? I doubt an interest cut will matter anymore as it relates to condo city. There are too many negative variables already in the urban model to pop the bubble as the trigger is related to fear and panic. The speculators are tapped out and won’t be buying; the developers are already holding the bag; and the greater fools who bought debt are waiting for a miracle.

#130 Smoking Man on 08.31.16 at 12:27 pm

#127 Wild Albertan Gonads on 08.31.16 at 12:15 pm

Sure I lose But win way more than I lose.

Simple system. Every 50 cent move, buy more. Exit when the last 2 or 3 trades are in the red. Typically walk away with 50% of Peak Profit. I think I’ll be building this trade for a while. It’s looking real for the CAD to get slaughtered.

#131 TurnerNation on 08.31.16 at 12:36 pm

Keep selling boys. This market.
Sell the rumor (election) buy the news (new prez).

#132 Brazil ex-pat on 08.31.16 at 12:44 pm

#869 crowdedelevatorfartz on 08.30.16 at 8:37 pm
@#762 Brazil expat
Seriously?
You’d let me sleep under the same roof as your “hot thin wife”?
I have to let you know that I’m affiliated with Bulimia/Anorexia Anonymous”( Not to be confused with “BAA” the sheep perversion site) and I would feel its my sworn duty to make sure she’s well “fed”

I’m packed.

Address?
+++++++++++++++++++++++++++++++++++++

She has been taking Brazilian Jujitsu lessons so don’t try anything……and she’s 6 feet tall.

#133 chopstix on 08.31.16 at 12:44 pm

BOC will lower…

Remember! you’re poorer than you think…

Pass me my fiddle.
———————————
i always thought that insulting and BS scotiabank motto ‘you’re richer than you think’ should be changed to ‘you’re dumber than we thought’

#134 Bottoms_Up on 08.31.16 at 1:14 pm

#89 Data on 08.31.16 at 2:55 am
——————————————
SurveyMonkey.com

Easy-peasy

Then all Garth has to do is share the link.

#135 F.dover on 08.31.16 at 1:17 pm

Smoking Man: you had me hook line and sinker! I looked at that house and pictured your late great father owning it, growing tomatoes, making wine, and smelling like hard work and garlic while you dwelled in his musty basement writing fiction while chain smoking Export ‘A’.
I grew up in Etobi-choke before Rob Ford was born, I know all of the stereotypes of your beloved Long Branch.

#136 Context on 08.31.16 at 2:17 pm

#135 F.dover:- Did you look at the front corner lawn as there is a little church built by the bush. Then I see a concrete bench and looking down there is a strange assortment of flowers in an arrangement like a memorial tribute that one would find at a grave site.

#137 Smoking Man on 08.31.16 at 2:26 pm

#119 Tom on 08.31.16 at 10:50 am
#40 Mark on 08.30.16 at 8:19 pm
Kind of bizarre that ‘economists’ would recommend shorting a currency that is soon to be in very high demand as the housing market deflates. After all, debt against Canadian RE is denominated in CAD$ and can only be repaid in CAD$. So if there’s a rush of people selling their homes, or rushing to liquidate other assets (ie: those Arizona and Florida “investments”) to pay down their mortgages so they don’t get foreclosed upon — that is extremely CAD$ positive.

Also, the demand truncation that goes with a Canadian RE crash is also very CAD$ positive as a significant chunk of Canadian discretionary spending ends up going into USD$-denominated items.

—-

Truly, you have a dizzying intellect…
………

I second that. Mark should study what happened to the USD after the housing crash….

#138 White Crock BC on 08.31.16 at 2:28 pm

Smoking Man on 08.31.16 at 12:27 pm

#127 Wild Albertan Gonads on 08.31.16 at 12:15 pm

Sure I lose But win way more than I lose.

Simple system. Every 50 cent move, buy more. Exit when the last 2 or 3 trades are in the red. Typically walk away with 50% of Peak Profit. I think I’ll be building this trade for a while. It’s looking real for the CAD to get slaughtered.
——————–

So who’s on the losing end of the trade? Some greater fool type who is long CAD? Who would be that stupid?

65c by the end of the year.

#139 Smoking Man on 08.31.16 at 2:29 pm

#135 F.dover on 08.31.16 at 1:17 pm
Smoking Man: you had me hook line and sinker! I looked at that house and pictured your late great father owning it, growing tomatoes, making wine, and smelling like hard work and garlic while you dwelled in his musty basement writing fiction while chain smoking Export ‘A’.
I grew up in Etobi-choke before Rob Ford was born, I know all of the stereotypes of your beloved Long Branch.
……

I’m still learning to write good fiction. But you need live and breath with the characters you invent. You need to get info there minds, Accents,, smells.

#140 n1tro on 08.31.16 at 2:29 pm

Is Bill Gross a bullion licker as per Greater Fool’s categorization of people here? Seems he is saying the Feds are manipulating the markets and to stay away for stocks and bond while going into gold.

http://finance.yahoo.com/news/bill-gross-fed-mastered-market-115839451.html

#141 Tkid on 08.31.16 at 2:36 pm

Bytor, oh to have your problems … Good luck with your decision.

#142 Another Shark on 08.31.16 at 3:25 pm

@ Smoking Man

Bang on the money, big boy. Crude crumbles again today. I’d be a little wary though. depending on what the idiots at the Sept OPEC meeting say, our petrodollar may get a little lift. Iran seems unusually compliant. Fishy fishy.

#143 JustEd on 08.31.16 at 3:29 pm

#26 Chaddywack

That’s just nuts!!!

This is what you get for about the same coin in my neck of the woods

https://www.realtor.ca/Residential/Single-Family/16690898/492-Rue-des-Roseaux-Sainte-Doroth%C3%A9e-Laval-Quebec-H7X4H1-East-Islem%C3%A8re

#144 45north on 08.31.16 at 3:34 pm

Ross Kay: “There are transformative months in all housing markets and August will probably go down (unless interest rates are dropped) as the most transformative in Canadian history,” he said on Tuesday “Already $1.3 Billion is now pending removal from Vancouver’s market on transactions recorded the last 60 days. Mortgage debt has now reached our May forecast levels for July 30th closings, at a record 1.4 Trillion.”

Interest rate is now 0.5 % there’s not much the Bank of Canada can do. During the housing crisis in the US, the Federal Reserve dropped interest rates from 5.0% to 0%. Besides the Government does not directly control the Bank of Canada.

Aggregator: CANADA ECONOMY SHRINKS 1.6% IN 2Q VS. FORECAST 1.5% CONTRACTION

Ottawa better start spending fast or this economy is heading down the toilet.

I wonder if Ottawa really knows there’s a problem? Ottawa referring to Justin Trudeau and the Liberals. I mean Christy Clark didn’t know there was a problem when she enacted her tax on foreigners buying property in BC.

#145 BOOM! on 08.31.16 at 3:42 pm

#121 Bytor the snow dog

Good luck without financial decision, Bytor. You can do very nicely, if you choose too.

Flopper….

We will do decently who read and heed the free financial advice dispensed here so magnanimously by the proprietor and guests. I have learned a good deal here, and have learned some ‘thinking skills’ as well from several posters, who shall remain unidentified.

The point for me at least, is to have ‘enough’ to last for whatever time yet remains, and to enjoy a decent quality enroute to terminus. Sounds awful, doesn’t it?

Last I checked another dreary day in the markets.

M64WI

#146 oncebittwiceshy on 08.31.16 at 3:52 pm

Say What? on 08.31.16 at 11:51 am
Listen, shorting the Canadian housing market right now is not very smart. Looking at the latest GDP numbers you can only conclude that the interest rates in Canada have only one direction to go and that is down. People that have said, “Of course interest rates will go up” don’t know what they’re talking about. So, with such low rates way into the foreseeable future, people will continue to be able to afford that 165% debt ratio.

Say What? It has been repeatedly mentioned on this blog that interest rates for fixed rate mortgage purposes are determined in the bond market.
What hasn’t been mentioned is the astounding amount of bonds that were purchased by other countries that viewed Canada as a safe haven during the GFC. This put a great deal of downward pressure on rates. What do you think will happen when those “bond vigilantes” decide that Canada is headed down the same route as every other country during the GFC.? Bingo!!
In regards to being able to afford that 165% debt, what do you think the banks are going to do when your 5% equity has disappeared? Ahhh, the light comes on.
The journey down will be especially difficult on the millennials and quite frankly I would almost recommend a class action lawsuit against the real estate cartel for their misleading and manipulative behaviour. Yes, we are all responsible for our own behaviour but balanced and honest reporting could have made a big difference to a lot of couples who will be suffering needlessly.
As we crest the biggest hill on the Vancouver real estate roller coaster all I can say is good luck.

#147 Tkid on 08.31.16 at 4:21 pm

Hey, maybe the US will vote in the President of Mexico as the President of the US? He seems lile a sharp felllow.

#148 Context on 08.31.16 at 4:52 pm

#147 Tkid:- The President of Mexico is the most corrupt man alive as everyone in Mexico knows he is a crook. The MSM says little about Mexico as you would be shocked by it all. There is no safe place left except in Mexico City centro with cops standing on every corner in battle gear day and night with automatic weapons.

#149 smartalox on 08.31.16 at 4:54 pm

@Metaxa #87:

There’s truth in your words: I recall in my University days, the local Laundromat (in the student ghetto) was adjacent to a resto-pub. Same owner.

He confessed one night that he made more money from the laundry machines than he did from the pub. And it was typical that I’d consume a pint or two while waiting for the laundry.

Big, industrial machines. A couple of time I recall knocking back some shots, and convincing one of my buddies to ride the spin cycle in the big industrial dryer.

Set on ‘fluff’ of course.

#150 Zen Headspace on 08.31.16 at 5:03 pm

#35 Ace Goodheart

“Life of course is not really like that and this is just a “set up” put together to keep everyone working and producing, for the benefit of a slight, sliver of upper upper class society.”
——————————————————————-
Great comment. So simple and so true.
Yet most people fail; to achieve this ideal.
Is it just because of typical human mental weakness?
Or is the media (all forms) so powerful that the human species has become completely brainwashed into having endless desire for purchasing crap that they can never ultimately afford?
I often wonder about these things.
Why are we collectively such suckers?
You hit the nail on the head regarding the avoidance of debt and saving 75%.
Very few do it.
Most will “retire” in poverty.

#151 DJH on 08.31.16 at 5:19 pm

124 Dan on 08.31.16 at 11:37 am

#37 DJH: “The minimum reported age was 25 while the max was 74” Hey! Yesterday I signed in as older than 74 (#757 DJH). Am I too old to count?

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

Sorry about that DJH.
====================
Dan, Was joking. Appreciate your contribution

#152 Context on 08.31.16 at 5:20 pm

#87 Metaxa:- You missed one and its a pop machine as had one. The location is key as was running with cases all week long just to keep it full. All cash business and declared every penny to the taxman most of the time.

#153 Metaxa on 08.31.16 at 5:38 pm

#122 not 1st writes:
That business needs to be set up in a large urban area and with the price of land and a building, you are over a million in, so all those quarters coming in will be mostly paying back the initial investment for a long time.

Well the initial investment was paid back many fold as soon as his accountant brought out his cheque book.
Trust me, the accountant is doing just fine…the close to half a mill, net, pre-tax is not an exaggeration.

I seriously doubt anyone would call this a “large urban area’ either. My entire area is around 70,000 folks.
That is three communities and all the rural that is considered our trading area.

We have lots of money out here, look at Garth in the sticks selling ice cream…he made his second million this summer I hear.

#154 westcdn on 08.31.16 at 6:47 pm

Wow, I didn’t know so many well to do want to find out how they compared. It must stroke your insecurities to have a neighbour with a better income, house, car and toys than you. At the end of the day what counts are the friends you keep. Respect is mutual.

I washed out at university because I thought I was smarter than I was and didn’t have to study and practice. After being smacked in the face, I went to a college to remedy my mistakes and I worked hard to get the best grades to go back. I got expelled after getting into a fist fight with the son of a prominent lawyer. The snowflake hit me in the face with a beer bottle and I went ballistic. My bottom teeth are crooked but I didn’t lose any. It was a slow build of anger. I got one shot at breaking his nose before his entourage pinned me to the wall. I missed and split his cheek. My buddy took him down before the a-hole could hit me while I was pinned. The rest of the security crew showed up to neutralize the entourage. The dean was spineless in the face of threats and threw me to the wolves.

My good friend who joined me at the college resigned at the same time because of the injustice. I could not get him to change his mind though we were close to graduation. I had enough of BS and went into a period of self-indulgence. I got a menial job that paid well for a few years and learned a lot about the diversity of people over the course of beer and soft drugs.

I tired of losers and went to BCIT. It wounded my pride but mother allowed me to live in her apartment rent free. I paid my own tuitions and graduated with only $1,400 of student debt although it took me 2 years to pay it off with my meager income. I will never think I am lesser because my bank account is smaller (same with other physical attributes).

#155 Ace Goodheart on 09.01.16 at 8:50 am

#149 smartalox:

Laudromats and coin op carwashes are little gold mines.

In the right location (say, near a college or uni, or in an area where a lot of people are renting apts) a coin op laundry can pull in thousands of dollars net per week.

Coin op washes are the same. Put it on a main road, as near to a gas station as you can. Ideally you also want a Timmys near by or a McDorks. That way you have the full service “pull off” the road so they can get gas, coffee, a burger and a wash. Makes them feel like they accomplished something.

Vend everything. Costs nothing to fill your laundro mat with vending machines. The vending machine folks pay you to put them there.

And yes, if you are running a business, you want to sell a low priced, affordable product, to everyone, over and over again. That is how all the great businesses became successful. Everyone, and I mean everyone, should be able to afford your product. And everyone should want it.

#156 TrucMuce on 09.01.16 at 9:41 am

Before we get worried about our investments in September, a fact:

“S&P 500 Index has declined in 56% of Septembers, averaging a loss of 0.6%”

#157 Nash on 09.01.16 at 10:48 am

Thank you Christie Clarke. BC liberal I hope you do 35 percent we need to stop the growth of wealth thank you also for increasing taxes and big government in BC .
We need you to keep hiring our party members for BC government jobs thanks you got my vote

#158 Jake on 09.01.16 at 3:02 pm

“Dillian also debunks the myth that rich Chinese dudes have been responsible for the housing gasbag, saying instead it’s obvious from debt levels that Canadians themselves have been “stretching” to buy houses they actually can’t afford.”

You still believe that chinese and other foreign investors are not a big part of the reason? How about today’s TD warning that “Foreign-buyer tax to spur market correction”? I think are either blind, have your own agenda or are a complete fool.