Four giant men in red track suits jammed onto the small elevator, and all looked down at the same time. Bandit looked up. ‘Vut nationality ees dog?” one of them asked.
“Chow,” I responded. “Chinese breed.”
“Oh, China.” They all grunted in approval, and reached way down to give the pooch a pet. Four hours later these players for the Russian national hockey team were skating off the Air Canada ice in defeat. The bomb-sniffing dogs had finished checking out the big bus parked outside the door Bandit and I use, and they were airport-bound. Just another day in the downtown hotel where we hang out.
Actually Dorothy, mutt and I occupy a condo here, in the beating heart of the city, a few steps from the ungodly-tall office tower where I’m often held captive. The historic hotel has three floors of condo conversion, a lobby full of marble downstairs, plus employees who are paid to pretend you matter. And monster hockey players. Room service and maids, too, if you want.
Anyway, I rent here. The monthly cost is 50% of what ownership would entail. Condo fees and taxes alone on my little unit add up to $1,300 a month. But I don’t pay them, plus there’s no equity on the table. No financing. Full mobility. Lease as long as I want. No risk.
I mention this because we’re entering a tough time for real estate, whether it’s in the Toronto core, in Vancouver, or the outlier boomlets of Victoria, Hamilton or the 905. More people should rent. Fewer should assume the past will have much to do with the future.
Here are four things homeowners should worry about:
Chinese Dudes Tax, Ontario Edition
Bad enough the BC government slapped a 15% tax on the value of all properties being bought by non-Maples, without consulting the industry, and then chortling about the crash that resulted – but other politicians are applauding the move. Finance Minister Bill Morneau likes it. Ontario premier Kathleen Wynne likes it. And we are likely just weeks away from it being implemented in that province or, at the least, in Toronto and the GTA.
As you probably know by now, the BC tax sent out a message strong enough not only to scare off the foreigners responsible for about 10% of all trades, but to shut down the locals, too. Once the irrational fear of being priced out of the market by house-horny Chinese was removed, sales collapsed. Prices followed. A market that was already seeing huge cracks was given the push it needed to rupture. This is what happens to assets in a bubble. It ends with a mess. Everyone gets wet.
The “Hey, we were Only Kidding’ Mortgage
So, remember this picture that a blog dog snapped a few weeks ago, which was then featured here on this pathetic site?
Sure you do. It was those fun bankers advertising the fact they’re happy to give out residential mortgages to foreign students (and other non-nationals) so long as they have a chunky 35% down payment. And no income verification required. Honest.
Well, not any more. After pressure was applied to the feds, and Minister Morneau made a few phone calls, the banks are taking it all back. “We’re pleased,” he told reporters on Monday, “that they are taking a look at the risks that they have in the market and taking action that they think is appropriate.” So add it up – fat taxes on non-Canadians buying property here, an abrupt reversal on long-standing lending practices to foreigners, and now a tax in Vancouver on people who buy homes and don’t occupy them. Gasbag, meet pricks.
Coughing it up in the GTA and VYR
On Friday the country’s top financial regulator dropped a hammer on the mortgage insurance business, taking special aim at the delusional locals in Vancouver and Toronto. If proposed changes happen (they will) then come the first of the year, mortgage insurers must beef up capital requirements to deal with the added risk inherent in those markets. It means borrowers will be under increased scrutiny over creditworthiness, including details of the loan size, credit score, outstanding debts and the time left to repay the mortgage – as well as the location of the home.
Think you always automatically qualify for mortgage insurance if you qualify for a home loan? Think again.
This is the cream of the USA?
The Hillary-Donald slugfest Monday night is a precursor to weeks of angst for the most important country in the world. The Dow had a triple-digit dump just thinking about it. The odds of more volatility between now and election day are probably 100%. If the Trumpian forces win, then the period from November 8th to the inauguration on January 20th – which will include a key Fed rate decision (Dec. 14) – could be a wild one for investors and markets. This includes the real estate market. Yes, in Canada.
At no time in modern history have Americans faced such a difficult choice between a political hack with trust issues and a scary billionaire rebel who thinks in Tweets. Uncertainty means more risk, especially with a president threatening to rip up our key trade agreement. Could be a rotten to time to have the bulk of your net worth in one asset, with an epic mortgage, in a country best known for house porn TV series.
So, think about it. Renting’s always a risk-free option.
By the way, Bandit was rooting for Ruskie victory. And room service. He got neither.
181 comments ↓
Don’t worry, Be Happy
If you’re going to place a tax on YYZ purchases then it would make sense to me to start at 5%, not 15. See what happens. You can always increase it.
Gasbag, meet pricks?
Sounds like a federal Liberal caucus meeting.
At least the veil of respectability politicians pretended to have in the past has finally been pulled away and we can see the rotten illusion of choice we have always had.
‘Vut nationality ees dog?”
Perfect, Istantantly I knew they were Russian. I’m stealing it for my book. Gog can write..:)
A month ago you scoffed at anyone who even suggested that Trump might win but today you’re more humble.
Poor Bandit! I’m rooting for him gaining access to room pampering.
buy in Hamilton!
Yup! Go into debt and get a modern education.
https://youtu.be/-NZVknySeE4
He must be widdling over by Jump. Can’t think of any green space.
http://www.theglobeandmail.com/news/politics/finance-minister-pleased-by-banks-restrictions-on-foreign-home-buyers/article32054269/comments/
look at the comments.
The Muppet is pleased when the banks stared doing their jobs but not a word on the cases when they were not doing it.
what a pile of crap!
Can u let us know what will happen if deutsche bank fails its stock is struggling at 10 euro from the high of 100.
So after investing the bulk of my house sale proceeds in a 60/40, I held back 100k in a cash account to “see what happens”. Is it prudent to wait for a major correction that appears to be around the corner and then add the 100k into the 60/40 dived equally? I know we don’t want to time the market but I am wondering if it would be prudent to maybe just wait until after Nov 8th? Your thoughts?
Had meeting with my Scotiabank Advisor. Told me everything fine. He discussed camping, I discussed Money. I feel change in the air.
PB43
I am encouraged that the finance minister is actually taking this foreign mortgage issue seriously. It is a bigger risk, as non-residents can easily disappear back to their home countries and leave the banks holding the bag.
I’m not necessarily persuaded that Vancouver sales would have fallen without the foreign buyers tax though. I do agree however that it is mostly because locals now do not see prices going up infinitely because of “the Chinese.”
I’m back in Vancouver for a temporary visit and what a difference since I left only 3 months ago. No houses in East Van where my family lives have sold signs. Neighbour down the street has listed his home for $1.9M and no one has shown up for two weeks of open houses (despite the 8s in the price) he said that “It’s just typical fall, “the Chinese” will be back around Chinese New Year.”
I predict it will take several years for prices to start to fall in Vancouver. People don’t often NEED to sell and I notice most sellers are simply taking their listings off the market and relisting later (often at higher prices-still delusional).
It’s basically a game of chicken right now. If the market is still down in the spring I expect to see some movement in prices. The key is that buyers have started to think that prices are going to drop and are not making offers.
Unfortunately people are listing two bedrooms in crappy hoods for $3-4k per month to rent, so I don’t know if renting is still a good option in YVR.
An extradition treaty with China sends a message about corruption
http://www.theglobeandmail.com/report-on-business/rob-commentary/an-extradition-treaty-with-china-sends-a-message-about-corruption/article32043651/
“If we are turning a blind eye to the proceeds of corruption being used to buy Canadian real estate, the problem is one of unfairness……..”
“The rule of law does not prevail when enforcement of the law protects the wealthy elite…… Selective enforcement or non-enforcement of financial crime breeds lawlessness by suggesting to the population that criminality pays.”
While we all wait with baited breath for that moderate correction in the Toronto real estate market (I believe that is what you are calling for) do you have any comments on what may be far more important – the decline of Deutsche Bank? You spent a fair bit of time clarifying the bail in clause for Canada…but what about Europe as Merkel stares down the barrel of whether to bail-out or kill the Euro? Regardless….if Deutsche goes down the contagion into the financial system will be severe.
http://www.telegraph.co.uk/business/2016/09/26/the-deutsche-bank-crisis-could-take-angela-merkel-down–and-the/
I don’t think they’re going to put a “foreign buyers” tax in Ontario. But I could be wrong. If they do, then we are looking at a situation where the government feels it is necessary to shield real estate from international currency (ie money other than the Canadian dollar). The idea is, Canadian Dollar is worth 15% less spending power, in BC, than other international currencies, so even things up with a tax (actually it’s worth 25% less, but it’s a start).
Mexico did the same thing when their Peso crashed.
Are they planning to devalue our dollar ahead of an expected interest rate increase? A 1% increase in rates will bankrupt the Province of Ontario without a Federal bailout.
However, it is still my opinion, for whatever it’s worth, that 99% of the population should not ever engage in real estate speculation, simply because they do not understand it. For it to work, you need a really good “bet” and you need to win. All real estate is not subject to speculation. There are only really a few good spots each year and they are hard to pick. You also have to wait a long, long time (my current “bet” will likely net me a few mil in 5 years time (which I will promptly stuff into my balanced diversified portfolio) but I have owned it since 2012 – it’s a long wait and you have to be right – densification is the surest bet to real estate success – someone needs to want to build a condo or retail on your land and there needs to be a very good reason why they would want to do that).
RE: “The Hillary-Donald slugfest Monday night is a precursor to weeks of angst for the most important country in the world.”
– Why would China have weeks of angst over that? They’ll get paid in any event. They are basically the bank for the USA now anyway……
Can Trump actually rip up NAFTA? What are the odds of that happening?
http://www.theglobeandmail.com/news/politics/finance-minister-pleased-by-banks-restrictions-on-foreign-home-buyers/article32054269/
apparently they were not tracking, hence no taxing capital gains on sales by foreign flippers!
But the guy wants to come after professional corporations – doctors, lawyers.
Think you always automatically qualify for mortgage insurance if you qualify for a home loan? Think again.
Wait, what?
What happens if you’ve already got a mortgage, and you go to renew the terms, and find that the value of your property has fallen to the point that the Loan to Value (LTV) ratio shoots up to more than 80%? More than 90%?
Is your bank going to force you to have mortgage insurance? What if you end up NOT QUALIFYING for mortgage insurance?
Will OSFI allow the banks to adjust mortgage rates (higher) to factor in risks, if mortgage applicants fail to make the cut?
Like if you have a ‘wink and a handshake’ mortgage at 2.5%, with a term up for renewal next February, could the bank bump the rate to 4%(?) 5% (?…or more?) if they decide that they don’t like any of the following:
– the change in value of your home
– the amount that you can pre-pay on your mortgage at renewal
– your ability to qualify for new mortgage insurance
– your employment situation
– your employment prospects?
Ouch.
I am waiting since 4 years to see the bubble burst but looks like its not happening anytime soon.
I have some interesting real estate stories of my friends
1) Family#1 – Combined Income less than 90K . They had intentionally increased their payroll to make it greater than 90K and qualify for 550K mortgage.
2) Family #2 – Combined Income 100K, bought a home in 2009 for 500K. Booked another home for 1.1 M which will be delivered next year . Hoping to make 500K profit on the first home.
3) Family #3- Combined Income 110K, bought a home in 2009 for 500 K, sold it for 850 K after upgrades(100 K) , bought one more home last year for 1.2M(occupied just 4 months ago)
Now bought another home 1.6M hoping to sell the current home for 2.2M
Comforting news about the mortgages without income verification.
Looks like the banks will have to find some other arena to speculate in. They’re a pretty slick bunch. Collect interest on the huge mortgages while turning a blind eye to the massive capital outflows (polite term for theft and money laundering) out of China, then,when it all goes belly up, find a way to shift the loses onto the public.
I hope the people currently invested in Vancouver real estate hand Christie her derrière next Spring. Too bad she couldn’t find a less bigoted way to get the speculators under control, this regressive tax is an embarrassment for a developed nation and will be repealed in due course.
foreigners were the excuse to inflate the bubble now they are the excuse to deflate it.
Stay away form the loonie. Going to a 60-ish handle pretty soon.
I really, really, really don’t want to watch the Presidential debate tonight, but I think I have to. I think it’s going to be one of those things like the Space Shuttle Challenger disaster where everyone remembers where they were when they saw it on TV 30 years later.
Key points to watch for in this presidential debate drinking game:
– Will Hillary’s “Death Support System” (that’s a Hitch-Hiker’s Guide to the Galaxy reference) be able to keep her upright for the whole thing? Every time you spot a suspension cable take a shot.
– Likewise every time she coughs more than twice in a row, take a shot.
– I’d like to say take a shot every time the email scandal comes up but then none of us will remember the last hour, and it’s only 90 minutes long.
– If Trump says “crooked Hillary”, take a shot, maximum 3.
– Trump’s objective tonight should be not to shoot himself in the foot with some unproven and easily dismissed allegation. 1 shot each to a maximum of 3.
– If Gennifer Flowers actually shoes up on camera, 1 shot, and you have to grope someone of the opposite sex. Actually, any sex will do because we don’t discriminate around here.
– Again, in order that we might be able to remember the last hour, only 1 shot for every 10 times we hear “Make America Great Again”. If you’ve already had 10 shots you are excused from this one.
– If Melinda’s cleavage is clearly visible, 1 shot the first time only. Am I weird to be hoping for that?
– Scott Adams will be live tweeting during the debate. 1 shot if you follow it.
– If Hillary calls Putin “the new Hitler”, drink the rest of the bottle because you probably don’t need to remember the rest of the debate, the missiles are on their way. If you have a bomb shelter you might want to retreat there. Actually that probably isn’t a bad spot to watch the debate from all things considered.
There are a bunch of other key words we could add to the rules like “experience”, “Benghazi”, or references to either “Foundation”, but I am thinking most of us will pass out before the end of it already.
@#7 Ace Goodheart:
The Mexican Peso crashed, and Ford, GM, Freightliner, Cummins, CAT, John Deere, Cordis, all opened factories there. Crazy like a (Vincente) Fox.
@#8 Hope & Ruin:
The complete NAFTA trade deal fills several telephone-book sized volumes.
Trump is known for having tiny hands.
My bet is no, Trump cannot rip up NAFTA
What is your rent on the condo?
You mention not having to pay taxes and condo fees and what they add up to, but the rent has to cover those costs somehow….
#4…Ace,
“Are they planning to devalue our dollar ahead of an expected interest rate increase? A 1% increase in rates will bankrupt the Province of Ontario without a Federal bailout. ”
*******************************************
What is this based upon? What do you think a 1% increase would do to the US with its $20 Trillion in debt and less than 2% GDP growth?
Tonight will be the start of the end for the corrupt bankster cartel.
Not too worried about the (U.S.) election. T2 can work with anyone because he is a liberal.
The 15% foreign buyers tax should apply across the nation plus 15% on top property tax on foreigners.
Plagiarist!
Love the blog, great stuff.
Now, where the hell is SM?
“The Dow had a triple-digit dump just thinking about it”.
I thought that was Lehman…er…Deutche Bank?
OK, there is risk in Toronto’s RE market … but just look around, buildings going up everywhere as the city grows. Are all those projects heading for disaster? Will central banks suck back all that cheap money and punt your 1 million dollar home back to 700K?
Another interesting Notion regarding those OSFI changes.
According to Peter Routledge, an analyst at National Bank Financial to Peter Routledge, an analyst at National Bank Financial, the new rules could also serve to crimp the practice of extending the amortization period of a mortgage to reduce monthly payments when a borrower is in financial distress. This is because, under the new framework, more capital would have to be set aside against those mortgages.
“In our view, this weakens the incentive for mortgage insurance companies to forbear, potentially increasing the likelihood of foreclosure,” Routledge wrote. An increase of properties in foreclosure proceedings, in turn, would weigh on home price appreciation, the analyst said.
http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/canadian-homebuyers-expected-to-absorb-higher-costs-of-tighter-mortgage-insurance-rules&pubdate=2016-09-26
In an hour I’ll be watching the US Pres. Debate, cheering on Trump. Not that either candidate is good (Hillary doesn’t seem to respect national security) and Trump has had his ups and downs in business. But when you have to pick the lesser of two weevils, then Trump FTW.
Housing: If it drops, the PRO is it is more affordable for all. If you buy and sell in the same market, there is no difference. If you are a leveraged… well… you should sell now and RENT.
Housing is done and will correct, but corrections are a GOOD and NORMAL thing, it means when it starts going back up again, we COULD go beyond what it is now.
Ready to watch some Reality TV tonight
RE: #28 Wall of Worry:
I base this on Ontario’s current debt which is currently slightly more than $302 billion. 1% on that is 3,020,000,000 per year. Yes, slightly more than three billion per year.
It doesn’t fit anywhere in the budget and they can’t borrow it. It would cause this Province to fall into a debt spiral. A bailout would be needed. Remember, the Province of Ontario CANNOT currently operate its government without borrowing billions per year. This year we are projected to need to borrow 4.3 billion dollars to continue to operate the government. Add another 3 billion to that and we are borrowing 7.3 billion this year (3 billion just to pay the 1% increase in interest). Not going to happen. We start tripping covenants and our credit rating tanks. Then it’s debt spiral time baby. Welcome to Greece North.
RE: Comments on mortgage insurance and refinancing: That fun little trip to the bank where you sign all those fancy forms and they figure out how to make it so you can afford the monthly payments, is actually an exciting time in the lives of most middle class Ontarians, that very few people understand.
Actually what has just happened to you (after the bank manager shakes your hand and you finish your coffee) is that you have just re negotiated a demand loan.
What, you ask? I have a 25 year mortgage. It has a payment plan. I am making payments. I have 25 years.
Nope. Wrong. At the end of your 5 year term, when you still owe hundreds of thousands of dollars that you have no means of paying, your 25 year mortgage has morphed (can I still use that word, “morphed” or do I make myself sound old?) into a demand loan. It is due immediately, in full, with any accrued interest. Pay it, or the bank can exercise power of sale, kick you out of your house and sell to the highest bidder.
Or….you can renegotiate (which is what your meeting with the bank manager was all about).
Doesn’t everyone feel safe and warm and fuzzy now. Sleep well. Tuck your kids in. It’s a happy world and everyone loves you…….
I was in the process of returning to YVR from the USA in the spring and went to almost every open house in my area. I have never seen anything like it. In some cases I had to park blocks away. Then in May it just stopped. I was at an open house and the realtor said it was the slowest open house in three years. Finally convinced my other half to rent. So we got a nice 7 year old house in Port Moody for $3700 per month. I laid it out for my wife. Take the cash we would use for the house and conservatively invest to get 3%, factor in no property taxes, no major repairs, no house insurance and it is at worst a wash. What I didn’t tell her was the $1000s of dollars we would spend fixing a place up to suit our (her) tastes wouldn’t happen. At least until we do buy. Seeing what’s going on in YVR she now thinks I am a genius.
Side bar. I spoke with my realtor in the US on the weekend. She said the market in the small southern town we lived in has gone very soft. As we were selling our house down there were lots of folks that were very interested. The problem they had is the banks wouldn’t carry a $300,000 loan. We eventually sold the home to a military couple who got a 100% loan through the VA. God love the US military!
15% tax for foreigners? Heck, after they buy the home every good and service has a 15% sales tax anyhow, at least it does in my Province. I paid 15% for every material that I built my home with too. Saved on the labour tax by doing all of that myself. All trades, every hour of them, AND had to put the 10% down too.
So now, how is it that that 15% is a punishment again?
The tax is a done deal, everyone who matters supports it, free cash grab. Its happening, watch gor “minor” tweaks to taxation in general, CRA, cap gains in the next 6 months
The bigger news is OFSI changing the rules, thats huge and more changes come the more lenders charge for the risk premium. Ie. Interest rates. Its less intrusive then govt intervention and the public rarely notices. Thats the story that greater fool broke!
#19 hope and ruin
If memory serves, NAFTA can be cancelled by giving the other party six months notice.
#87 Dogman01 on 09.26.16 at 12:47 pm
The War of the World: Twentieth-Century Conflict and the Descent of the West -by Niall Ferguson
===================
Thanks, Dogman01
Now on my reading list
So if Ontario acts on the 15 % or so tax will it be on properties that sold after that date or closed after that date?
If it is acted on Dec 1 then I would assume that any contracts that were signed before Dec 1 would be ok . Even if they closed 90 days later ?
Would anyone here know ?
Good morning Garth (it’s morning where I am from),
I’d just like to share with you something that may warrant your interest. I have been a follower of this blog for about two years, it seems the comparison between Canada and Australia are uncanny. As you so put it heavy reliance on materials and a knack for real estate bubbles. However, I came across this the other day reading my general morning news about the extent of dodgy money from the Middle Kingdom coinciding with the acceleration from the Chinese dude tax. http://www.macrobusiness.com.au/2016/09/chinese-courts-pursue-dodgy-vancouver/
We are in a very similar boat over here, house prices are the only smart investing solution. Stocks and options are a casino whilst bond seems to be some kind of gluing agent. I am quite content to rent at the moment waiting and attempting to put our savings to good use (my wife tries her dearest to throw herself in the asset everyone else can’t stop talking about) and wait out this volatility. Anyhoo, keep up your posts and thank you for being a different opinion in the wave of what seems to be a house crazy sea.
Al,
In my FI, we started pulling bureaus on all mtg renewals 2 months ago
If your beacon is under 600 you pay .25 extra so this has already started to increase rates only in a very small number of cases but as we begin the inevitable sharp increase in unemployment and losses the number of mtg renewals needing the extra charge will increase dramatically in the next few years
If you do not have at least 20% equity at renewal time and a good credit score you can be asked to make a lump sum payment to reduce the mtg principal down and/or I crease the mortgage payment to shorten the amort and if you cannot do either then die those dumb enough to have bought with 20 down you will be sent a letter asking to find another lender and you pay a high open mortgage rate until you do
BTW did you see the 10 year Canada yield break under 1% ? Mid 2017 get ready for .5 % on the 10 and 0 from Polozs’ boys
So be do
I’m seeing several $50K price reductions in Tri-Cities area, in particular Port Coquitlam. And this is an hour from DT Vancouver.
The FOMO that swept over “the sticks” is completely gone. There are some decent homes priced between 649K-768K range (north of Lincoln Ave) that are sitting on the market for over a month. If buyers have been watching the MSM message (which it looks like they have been), they are smart to wait it out.
If these homes don’t sell this fall, 700K range will be done, and 2017 will be a cricket fest.
If it took a year to see a 35% price increase, why not wait another year to watch it reverse?
Total SOS if Hillary does not destroy her opponent tonight.
Here is 70’s hotness.
https://www.youtube.com/watch?v=5DkQBPpun0M
I enjoy very much certain combinations of words. Today they are:
…employees who are paid to pretend you matter.
Gasbag, meet pricks.
Today the God Emperor of Mankind will deliver a crushing defeat on the Clinton Heresy.
#36 The Technical Analyst (aka A Canadian Abroad)
I’ll be cheering for Trump too. He’s good on stage because he can ramble and he won’t show he’s messed up or taken a hit on stage… he’ll just keep rambling with crooked Hilary and sick Hilary shots… lol
Hey Garth, one thing I haven’t seen you go through (or really anyone for that matter) is how mortgage insurance works when a claim is made. I’ve had to look into it recently with a relative (sister in law made a bad investment decision… In my brother) and is going through bankruptcy. She has to sell her house but nothing’s moving. So now she wonders if she will have anything left over.
I didn’t realize, and I wonder who else does, that when mortgage insurance kicks in you end up accruing a bill with the insurer. This is after the privilege of giving them thousands up front so your mortgage company has coverage. Could you maybe do a primer on how it works one day?
We pay for insurance the banks get the benefit of… Sweet deal.
#25 I really, really, really don’t want to watch the Presidential debate tonight, but I think I have to.
Me thinks so too. It will be hilarious in a sick kind of way. Kind of Monty Pythonish. But whatever happens down south it will not bode well for Canada. We are going for a dunk in the pool. And Europe isn’t going to save us from that dunk, that trade agreement is currently being rejected by the masses. Oh well this ain’t my first rodeo. Kind of looking forward to it. Buying opportunities galore. These kind of opportunities come along very rarely in one’s lifetime…
#38…Ace,
“Then it’s debt spiral time baby. Welcome to Greece North. ”
*******************************************
Ace….you are essentially arguing my point but ignoring my question. Ontario currently spends 16% of its operating budget on servicing its debt. A 1% increase would move the needle for sure….so we would now be looking at 17.6%. Essentially it would mean a further degradation in critical services, as we have seen with healthcare etc. However, I would argue that a 1% increase in rates on the US $19 T debt is even more impactful. Regardless….everyone on this blog is waiting for economic Armageddon in Canada because of real estate, but the reality is that global debt (governments and consumers) cannot be serviced with current and forecasted growth rates if interest rates rise 1%. If one studied history they would realize that we are headed for some form of economic reset, and every economist continually reduces forecasts for future growth.
Bandit is a traitor; go Canada go! :)
Renting is the best option for now until everyone including our wonderful staff at Parliament Hill thinks differently. I do not get it; why on one hand are they saying that we are the best country in the world and yet they think of every way to tax us for really the most mundane crap out there; there is “NO” reason to buy a vote at the UN, there is no reason to tax Ontarion’s to death for a so called clean energy surcharged on to sell the quantity below whole sale to the Americans while Ontarion’s pay for it. There is NO reason as to why energy transportation routes cannot be agreed to, creating thousands of jobs, befitting all Canadians, never mind all the trade barriers between Provinces and Territories; what a fricken joke, are we a country or not???? Love you T2, not, seriously grow up, sorry, you are too busy entertaining the Royals at our expense, hey, how did it feel that the little guy could care less about high fiving you? What a curious person you are T2.
#32 Gasbag Boomer on 09.26.16 at 7:43 pm
Plagiarist!
Love the blog, great stuff.
Now, where the hell is SM?
……
Tail Gate pre-debate drinking party
When is there going to be a post on demographics? Hasn’t been one in a while.
“Bad enough the BC government slapped a 15% tax on the value of all properties being bought by non-Maples, without consulting the industry, and then chortling about the crash that resulted – but other politicians are applauding the move.” – Garth
——————————————————-
Bad? What nonsense. Not bad at all. And the crash did NOT happen because of non-maple buyers. As you often insisted Garth, they were not a factor in the Vancouver RE market.
Here we go boyos. It’s debate time. I’m rooting for Trump but to be honest, I am scared to watch. Scared because I know every progressive globalist oligarch slime is spending millions to discredit and weaken him. They will pull out all the stops and throw everything they can at him to have their puppet in power. They depend on it. NIRP/asset bubbles everywhere, mega debt, and failing economies. All served with a sickening spoonful of propaganda: The US economy is booming! Rates will “normalize” soon. Inflation is low etc.
Trump will have to navigate a mine field tonight.
All the liberal insults will be hurled at him in one way or another: Racist! Bigot! Xenophobe!
Luckily more people are awaking to the lies. Trump just has to stay the course, continuing to speak the truth that everyone knows, and is often afraid to say.
I am hoping he can do it.
MF
“At no time in modern history have Americans faced such a difficult choice between a political hack with trust issues and a scary billionaire rebel who thinks in Tweets.”
==========
No better (if not worse) than our PM who speaks in non-speak tweets of BS equalism and instagram selfies.
A poll finds that Trudeau handouts have so far had no effect:
http://www.bloomberg.com/news/articles/2016-09-07/trudeau-handouts-not-providing-stimulus-bloomberg-poll-finds
I wonder if trump will finish the debate with “you’re fired!”
Hillary will fall over on stage and never come back – lol!
…same old story ….on the other side of the pond……buyer’s remorse!
https://www.theguardian.com/commentisfree/2016/sep/26/i-finally-own-my-first-house-so-why-do-i-have-buyers-remorse
“So, think about it. Renting’s always a risk-free option.” – Garth
——————————————–
No. Not true. Those that rented these last eight years missed out on huge gains. With renting, you run the risk of missing out on massive tax-free capital gains.
Right. Because real estate always goes up and carries no risk. You’re a genius. — Garth
Hey, all high fiving T2 supporters, what’s your take on this? I cannot wait to hear the responses.
http://www.cbc.ca/news/politics/rempel-moving-expenses-question-1.3779708
All most of us want from a bank is our money back when we ask for it and not to have to bail it out with our tax money.
This writer thinks it is time for the low-risk public or “postal” bank to make a comeback. (Postal banks are ones that use government post offices as branches).
I think the rise in low-cost financial technologies means online private banks could do the same thing. It could be a great business opportunity. Since the article is paywalled, I have extracted the relevant portion.
“The solution to poisonous banks is a non-toxic public bank”
“To stop the greed-fest, why not nationalize the banks?
It’s a tempting idea, though an impractical one, in good part because it would be impossible to unwind the trillions of dollars in notional value of all the derivatives held by the banks. But creating big public banks would give customers the option of avoiding the sleaze-fest. These banks could be called postal banks (as they are in parts of Europe), invest only in safe government bonds and do what banks are supposed to do, which is to transform deposits into loans that would grease the real economy and create jobs. They would avoid investment banking, trading and derivatives and their employees would not be given aggressive, Wells Fargo-style sales targets.
If the financial crisis and the ongoing scandals have proved anything, it’s that regulators cannot regulate private banks to the point they are safe and honest, and that too much regulation, perversely, can backfire by tricking bank customers into thinking that their bank is bulletproof. A simple, low-risk public bank that offers simple, low-risk banking and insurance products is an old idea whose time has come again.”
http://www.theglobeandmail.com/report-on-business/rob-commentary/executive-insight/the-solution-to-poisonous-banks-is-a-non-toxic-public-bank/article32025858/
it looks like there’s going to be a housing collapse and governments are deciding where they want to be when it does collapse.
it pretty much looks like they’ve decided they aren’t going to do much of anything to stop it
Andrew T: the new rules could also serve to crimp the practice of extending the amortization period of a mortgage to reduce monthly payments when a borrower is in financial distress.
that got my attention
Chaddywack: I predict it will take several years for prices to start to fall in Vancouver. People don’t often NEED to sell
Chaddywack you gave us the case of a guy in Vancouver who mortgaged his house to buy three more. How’s he doing? How long can he hold out?
“….At no time in modern history have Americans faced such a difficult choice between a political hack with trust issues and a scary billionaire rebel who thinks in Tweets….”
_________________________
No worries.
Based upon their previous performances, it’s a virtual certainty that either candidate’s mouths will make themselves ripe for impeachment after just a few hours into their first term.
http://www.cbc.ca/news/politics/liberal-fundraising-email-trump-1.3779030
Of course he supports Clinton. This guy is the stereotypical leftist leader that is the reason why Trumpism is popular in the first place. Of course our “Liberal leaders” are worried. They are worried because a Trump presidency means they would have to actually do something for the betterment of Canada and not the globalist oligarchs that they are so bent on courting.
I wonder if he realizes how many Americans are looking north at us, seeing his failed policies, and turning to Trump? The climate change money waste and the sickening attempt to woo the corrupt, inept and useless UN are exactly what Americans are afraid of.
MF
I have never met anyone who regretted having bought real estate as a long term hold. I have, however, met many who regretted NOT buying or selling in order to adopt a renter lifestyle… or trying to time the market.
The slowing of RE sales is finally happening in Toronto. I say this because of 2 listings in little Italy that have been up for sale for almost a month, if this was a few months ago they would have already sold.
Hillary is totally CRUSHING Donald already tonight!!
This debate will help get things back on course, and stifle any market anxiety in America.
Sorry, right wing loons and tinfoil wearers:
Trump is toast.
Wouldn’t you think if you were a self-made billionaire who led an exemplary life, the cops would leave you alone?
Not if you’re black.
Meet Robert Smith.
“Smith says he is often reminded he is still a black man in this country. At least three to seven times a year, he says, he is stopped by police as he drives himself to the airport in Texas. The officers run his tags and check his license. He’s told he was speeding or changed lanes without signaling. The officers send him off, often without a ticket.”
https://www.washingtonpost.com/national/who-is-this-robert-smith-a-quiet-billionaire-makes-some-noise-with-20-million-gift-to-the-african-american-museum/2016/09/23/547da3a8-6fd0-11e6-8365-b19e428a975e_story.html?wpisrc=nl_most-draw8&wpmm=1
Truth be told,
Donald is not looking good so far.
Maybe more orange in the hair?
Mr Trump is kicking Secretary Clintons behind.
Trump. Wow this guy is scary! Even more scary are the right wing loonies on this blog who like him
Lol!
#72 Marlene from Victoria on 09.26.16 at 9:30 pm
Hillary is totally CRUSHING Donald already tonight!!
This debate will help get things back on course, and stifle any market anxiety in America.
Sorry, right wing loons and tinfoil wearers:
Trump is toast.
Sorry but Mrs Clinton is acting like a totally normal politician. This is why she will lose the election.
Donald is trying to help Hillary win but she is not looking good.
What’s with Donald and all the sniffing and snorting on my tv ??!!??
Is this guy on cocaine, or what?
What a freakazoid! Now all America knows.
Trump is toast.
I’m still seeing second-rate $600k-$900k homes in my area of Mississauga selling within a single weekend with multiple offers. If there was a memo sent out to be worried about the market, these fellow Mississaugans never received it. Will this lunacy ever end?
Watching this debate makes me think how Trump got so much support. He’s so bad….Clinton is crushing him
#24:
http://business.financialpost.com/investing/trading-desk/loonie-could-be-set-to-move-higher-against-u-s-dollar-as-vast-majority-of-gains-have-been-made
Trump is going to lose bigly!
cool invention. Interpreter for your ear. May help Vancouver residents learn their new official language.
https://www.youtube.com/watch?v=G6SFbSD63IQ
PB43
Bigly bad for the Trumpster 2nite.
Anyone here think he did ok?
Hillary did good. 30 years of experience being a Master bull shitter..
Trump won’t lose on ounce of support. Probably gained a few black and Hispanic votes.
It was all about expectations, we expected Hillary not to do so good, and expected him to unload. Which he diden’t.
I’m calling it a tie…
Next two will be different. I’m still long Donald.
Score :
Clinton : 1
Trumph : 0
But it’s a game with three rounds. One down – two to go.
The media will spin it as a Clinton win. My bet is Trump takes another step up in the polls this week.
Where Hillary has the edge. Taking points of the newly mind washed. The newly educated.
Climate change. Woman’s rights, the geto.
Trump’s edge, they don’t vote.
Dr Smoking Man
PhD Herdonomics
Canadian vendors are the recipients of that so called
‘foreign ‘ cash
guess what ?
they spend it back into the local economy
the so called government will shrink the economy
Don’t think Wynne wants foreign tax to cool hot home prices.
http://www.bnn.ca/ontario-premier-wynne-not-sold-on-taxing-foreign-homebuyers-1.570982
“Where are your 30,000 emails Secretary Clinton”
“The 6 trillion dollars you spent in the middle east should have been used in America”
“I will prevent businesses from leaving and if they do I will tax them on goods coming back to America like they do in Mexico and many other countries”
Tell us how Secretary Clinton won again? Or I guess those points are not a big deal.
Looks like SM might be on to something. Trump killing Clinton in the debate tonight.
Too bad Trump doesn’t have the EC votes. He won the debate. Easily too.
Skipping income verification is in some cases just fine.
If borrower puts up 50% downpayment, no need to verify income.
The lender has almost 0 risk of assets value going below load value.
If borrower skips payments, bank can earn on hefty fines, and foreclose when unpaid fees get too high.
The entire crowd was pro-Trump. crazy loud cheers when Trump mentioned Clinton emails. Clinton still wins. She has the Establishment behind her. Can’t beat Establishment Wall Street
not one Canadian vendor with a house to sell is complaining about foreign cash
not one
“in a country best known for house porn TV series.”
I know… it’s pathetic,
So pleased to see Netflix show Shoomi the door.
Rogers and Shaw can’t compete, overall lame without CRTC.
This is for all the “bullion-lickers” out there! This video, from Annonymous dated for tomorrow (Sept. 27, 2016) chronicles the fall of the US Dollar, so thought it was best to share today. Fictional, but is this the possible black swan event that finally pushes interest rates higher and starts crashing the Canadian Housing Market?
http://youtu.be/e8dW490_xKQ
#85 conan on 09.26.16 at 10:38 pm
———————————
Canadian media portrays him negatively. To Canadians, he did not bad relative to expectations.
In America, he’s seen in a more positive light. The debate maybe didn’t go as well as expected, based on expectations.
But people will see what they want to see.
Personally, I believe he has deficiencies that disqualify him to be POTUS.
Not gonna like, this one was rough. Trump suffers from imprecision of speech, Hillary delivered vacuous, but coherent and polished answers. Trump rambles and is too irascible when pressed on his company.
Overall pretty inconclusive, but Trump has to keep hammering away at his core objectives: jobs, trade and taxes, and he will get those folks in the battlegrounds of OH and PA.
First half Trump. Second half Clinton. I have it as a tie.
Clinton used the same canned, political speak everyone is sick of. Predictable and won’t move the needle in either direction.
MF
It hurts me to say this. Hillary won the debate. He seemed petty to me trying to blame Hillary for everything instead of blaming the destructive democrat policies that have caused all our problems. Remember she has said she will continue Obama’s policies.
There’s a lot to be said about being or appearing presidential and she won there also. She hit home with the statement that words matter and they matter more when your president.
Overall I think Hillary won so that means American poor and middle class loses.
Sell gold buy stocks.
@ 66 “45north”
Good point. He was a co-worker at a previous job before I moved to Calgary so I’m not sure what happened.
Basically he heavily leveraged his fully paid off (in the late 90s) West Vancouver view property. It was assessed at about $3.5M in January. He bought three Vancouver houses for about a million each he said. Had he sold in April he would have done well, but I heard he was renting them and hoping to “double down” when the three went up to about 2M each and then sell and come out with about $3M profit.
I’m not sure if those three houses would be cashflow positive, but Vancouver rents have skyrocketed so he’s likely still doing ok. Not sure how long he can hold on for, but I wouldn’t imagine he would need to sell for a couple of years….but I don’t know his personal situation so he may need to sell sooner?
Well, (hic) the debate wasn’t as bad as I thought although I still (hic) made it through a half a 26’er (hic).
#72 Marlene from Victoria yes you are right I think, Hillary did probably win but she came across as a cranky old grandmother who twists everything to her viewpoint to manipulate her grandchildren, and they are never good enough. Trump may have got the sympathy vote I mean Hillary was bringing up lawsuits Trump’s holding companies face in the early 70’s! Since that’s well settled now and it wasn’t just his company, what’s the point? (hic) And Trump hasn’t released his tax returns but he has released his financial statements, whereas Hillary has released he tax returns but not her financial statements? So what? All Hillary’s money goes through the Clinton Foundation so there are no taxes.
Anyway (hic) I think Hillary won, much more on the offensive and showing 30 years experience lying and manipulating. Trump was so on the defensive his hair couldn’t save him. But I expect now that the tone is set, we’ll see the gloves off in round 2 (hic).
#72 Marlene, sorry but I do think he’s fighting harder to win. Hillary not so much. I want to see a tougher version of her… she’s too soft. His style is all business, kill instincts, and he does not sound like a boring politician at all. That is what is appeals most to the American Subconscious.
He’s also brilliant for using the word “braggadocious”. Many thought that was a made up word, but I Fact Checked it… it’s a real word.
Hillary clearly won. Even Alex Jones was crying like a baby on his show tonight after not only did Clinton showed up, but she held her own against Trump and made him look like a fool more than even most of us anticipated.
Quite frankly, I’m surprised. Trump will have to go back to the drawing board, and try to get better at the whole ‘debate’ thing in an environment where he can’t draw upon the energy of his audience.
Did not follow the campaign this much.
From what I heard Trump was a shoe in.
But watched the debate.
Jesus, Trump is a raving lunatic.
Incoherent, almost foaming from his mouth.
I am no fan of Clinton, but she played him like a fiddle.
God save America.
#100 Bottoms_Up on 09.26.16 at 11:20 pm
“But people will see what they want to see.”
——————————-
Bingo, bango, bongo! We have a winner. That’s a human trait though. SM knows what I’m talking about.
What I saw: Trump rambled too much on tangential topics but had some good zingers earlier on (economy mostly). Clinton was a bit too smug after some of his ramblings. She probably thinks she won hard, but it was likely closer than she thinks.
Verdict: Mild bump for HRC. Very mild…
Finally watching the debates.
So Trump wants to take back the jobs that were ‘stolen’ by other countries. But these same companies are RUN by the wealthy people that Trump wants to reward with tax cuts.
America, and Canada, need to invest in industries where robotics can’t easily replace workers, or where the, the value of the goods produced are too delicate or unweildy to be transported over long distances.
http://www.dailymail.co.uk/news/article-3807799/We-generation-live-Venice-Venetians-BLOCK-cruise-ships-docking-city-destroyed-tourists.html
I got into this debate 40 years ago in high school then 30 years ago when I started working.
I have posted comments on this many times.
It’s all about your personal choice.
But I would love to see the math with a 50 year time span. No one can argue that buyers win hands down.
Can you now start today at zero and go out 50 years from now.
Owning versus renting? Owning will win hands down.
Because Garth argues balanced portfolio. But like the post a few days ago 50% of Canadians live paycheck to paycheck and cannot save. Therefore owning is better because they will never accumulate enough money to have a balanced portfolio to live tax free.
Trump won, not because is was better, he demonstrated to me he is totally stupid. He will win because Americans are fed up with establishment.
I loved it when Trump said he will bring all the jobs back to America ha ha how stupid. But Americans will believe it’s possible. And he will stop Ford moving to Mexico ha ha another stupid comment. But Americans believe him.
I will be more interested four years from now when Americans are really upset about reality.
The debate wasn’t even close. Trump=Sonny Liston. Clinton= Cassius Clay. Boom.
Hey all of you – wake up it doesn’t matter who wins this joke of a debate or who wins the election. Why are you so involved with it? Why are you watching it? It means nothing – wake up and stop believing the shit that mainstream media pushes – it is fodder to feed the masses – get over it and move on with “you’re life”
#90 Dr. Talc on 09.26.16 at 10:56 pm
Canadian vendors are the recipients of that so called
‘foreign ‘ cash
guess what ?
they spend it back into the local economy
the so called government will shrink the economy
——————-
Nope! They don’t spend it on the local economy… they dump it back into more expensive real estate. Or spend the HELOC on a new KIA. This cripples disposable income, thus hurting the local economy. But KIA plant in Mexico thrives.
A housing bubble does nothing to help an economy except distort and price everyone out and create a looming disaster that will soon end badly.
BTW, it’s cricket season here on the west coast… more listings coming soon!
When signing for a mortgage always read and understand the fine print. In other words, know what you are signing and visualize the worse case scenario. Play it out and ask questions about from more than one source.
Thought Trump did excellent in the first debate with Hillary. Trump is not good on the environmental issues, and other few issues but today he stood his ground. When Clinton talks about building the middle class, that is where she fails me. Not all people are middle class, some are average to poor, and it is this group of people that need jobs or start a small business like Trump said. The average to poor person cannot compete with cheaper products from other countries. Hence, the welfare, social assistance is in place.
It we had the same amount of time for elections like the States or at least a year, I bet T2 would not get in. Our election is about 2-3 months, can say things but there is not enough time to debate the issue(s).
Bernie Sanders would have been a better leader, combination of the best of the two running.
Huh, I thought Bandit was a Samoyed.
Garth,
It’s a pay wall. Let it pass, if you wish. But the link won’t work for most people as it’s from FT.com.
https://www.ft.com/content/99ff79ea-826f-11e6-a29c-6e7d9515ad15
————————————————————
“The art of defrauding America:
Reality TV star turns liberal media values and voter cynicism to his advantage”
by Edward Luce
“In the Art of the Deal, Donald Trump’s get rich quick guide, he explains how to seduce the customer. “People want to believe that something is the biggest and the greatest and the most spectacular,” he wrote. “I call it truthful hyperbole.”
At the presidential debate on Monday night, roughly 100m Americans will be exposed to Mr Trump’s magical thinking. The US can be great again by electing the best dealmaker in the world. Some will see it as a con trick. Others will be willingly gullible. A worryingly large share will care little about his truthfulness either way. Since all politicians lie, Mr Trump could hardly be worse than Hillary Clinton.
That, in purest form, is today’s voter breakdown — a world apart from the founding fathers’ informed citizenry. In the hunt for the mother of all deals, Mr Trump has two key partners. The first is the media. Conservatives believe the conventional media suffers from deep liberal bias. Most journalists probably are on the left by their measure.
But that is irrelevant. Mr Trump’s genius is to grasp that television’s desperate quest for ratings outweighs any ideological leanings. Leslie Moonves, chairman of CBS, put it well earlier this year. Mr Trump’s celebrity had worked miracles on the network’s advertising revenues. “It may not be good for America,” he said. “But it’s damn good for CBS.” In an age of ever-thinner gruel for the TV business, Mr Trump offers repeated sugar highs. Monday’s record ratings will have little to do with Mrs Clinton.
The reality TV star has also turned liberal media values to his advantage. Fox News pays lip service to being even-handed. CNN, on the other hand, balances liberal voices with credible opposing ones.
At a time of acute polarisation, such false equivalence is gold dust to Mr Trump. He may run a pay-for-play charitable foundation but so do the Clintons. He may refuse to release his tax returns. But Mrs Clinton hid a private email server. After a while, everyone seems equally bad. In reality, the Clinton Foundation raises billions for philanthropic causes and its published accounts meet industry standards. Mr Trump, on the other hand, has used his to make political donations, buy portraits of himself and settle law suits. It is possible details of his serial “self-dealing” — painstakingly chronicled in the Washington Post — will sway some voters. But they will have to switch off their TVs first. Short of an Edward Snowden-type leak from the Internal Revenue Service, voters will never see his tax returns.
Mr Trump’s other key ally is public cynicism, which is also fuelling the media’s ratings crisis. In 1954, the career of Joseph McCarthy, the senator behind the “red scare” witch-hunts, came to a sudden end in a televised hearing when an attorney proclaimed: “Until this moment, Senator, I think I never really gauged your cruelty or recklessness. Have you no sense of decency, sir?”
It is hard to imagine what — or who — could publicly shame Mr Trump. The gatekeepers have gone. In those days, figures like Walter Cronkite, the legendary news anchor, could turn opinion with a morally charged soliloquy. Mr Cronkite’s authority drew from a middle ground that no longer exists. It hinged on the public’s trust that it was possible to be objective. In the absence of such trust, the best Mr Cronkite’s successors can do is resort to a hollow “he said, she said” neutrality — or drop the pretence altogether. This, too, Mr Trump plays like a violin.
US election poll tracker
Which White House candidate is leading in the polls?
Will it work on Monday night? Quite possibly. Most of today’s TV anchors say it is the other candidate’s job, not the moderator’s, to correct factual errors. Their favourite analogy is a sporting one in which best game is where the umpire’s role goes unnoticed. But the comparison does not stand up.
No soccer game would last a minute if it were up to the players to call out the opposing team’s fouls. A fair referee will discipline players on merit. If it means one team gets six yellow cards and the other only two, so be it. Nor will a referee be intimidated by the booing of the offending team’s fans. By all accounts, Lester Holt, the NBC anchor, who will moderate the first debate, will try to be fair-minded. But Mr Trump is playing games with his head. Mr Holt is a Democrat and therefore biased, he says, although voter records suggest that Mr Holt is a Republican. The whole event — and the general election — is probably rigged in Mrs Clinton’s favour, he claims.
It is worth marvelling at how well Mr Trump has played a conventionally weak hand. He has branded CNN, which devotes just four per cent of its Clinton coverage to her policies — a third of what it has allocated to her email scandal — as biased. He calls it the Clinton News Network.
The leading outlets devoted more airtime to Mr Trump’s assertion that Mrs Clinton created Isis, than to her policies for defeating it. The first was Trumpian invention. The second is serious business. But Mr Trump grasps a truth about today’s low-trust democracy that still eludes others. People want to be entertained. “I play to people’s fantasies,” Mr Trump wrote in his best-seller. On that playing field, Mrs Clinton’s edge disappears.
As a species we are always vulnerable to deception. Remember those Weimar types in early 1930s Germany? None of them could hold an audience.”
“If you do not have at least 20% equity at renewal time and a good credit score you can be asked to make a lump sum payment to reduce the mtg principal down and/or I crease the mortgage payment to shorten the amort and if you cannot do either then die those dumb enough to have bought with 20 down you will be sent a letter asking to find another lender and you pay a high open mortgage rate until you do”
Yup. As I predicted many times here and on that ‘other’ venue in which I used to provide analysis. The banks are in the drivers seat these days and will be tightening credit almost with impunity as everyone (except a few dumb Realtors) knows the jig is up for RE nationwide after a few years of stagnation.
“Hey Garth, one thing I haven’t seen you go through (or really anyone for that matter) is how mortgage insurance works when a claim is made. I’ve had to look into it recently with a relative (sister in law made a bad investment decision… In my brother) and is going through bankruptcy. She has to sell her house but nothing’s moving. So now she wonders if she will have anything left over. “
Basically the bank sells the house, and collects the deficiency from the CMHC. And the CMHC chases the defaulter for the money. By this point, most are personally bankrupt. CMHC is an unsecured creditor in the bankruptcy process and has a pro rata claim of money paid into the estate, can oppose the bankruptcy, etc., in the usual fashion.
Bankruptcy extinguishes unsecured debt. It will leave records permanently scarred, but otherwise, as a first-timer, its fairly routine.
DELETED 2
“Like if you have a ‘wink and a handshake’ mortgage at 2.5%, with a term up for renewal next February, could the bank bump the rate to 4%(?) 5% (?…or more?) if they decide that they don’t like any of the following:”
Yes. The remedy of the borrower would be to find a different lender. But if every lender is systemically tightening, well, the phrase, “between a rock and a hard place” is apt.
This is why the “landlord families” in Vancouver/Toronto, and the Realtors have been so eager to foment the false narrative of rising prices over the past 3 years, when in fact, prices have been flat. To keep the bankers believing (deluding) that their loans were adequately collateralized. Sales mix adjustments ran their course in YVR recently, and wham, the reaction of the “headline numbers” was swift and relentless.
“We pay for insurance the banks get the benefit of… Sweet deal.”
You get a huge benefit with CMHC insurance, namely, instead of paying high single digits interest rates for your subprime loan, you pay rates that approach the rates for GoC bonds plus servicing costs.
CMHC subprime insurance is most likely priced at well under its true “market” price. Which means that the government/CMHC will likely be on the hook to recapitalize/”bail-out” the CMHC as prices fall and subprime loans go bad.
Its a great time to be a Canadian bank shareholder, IMHO.
If you have ever started and/or run a company in your life and listened to all the Clinton high taxes cacophony of “save the bees, save the trees, save everyone from themselves” coming from her mouth last night, you’d want to commit Seppuku and if American, indeed move your company to another country…probably why Wall Street lost triple digits today.
I did not hear one thing economically that would make me vote for Clinton (if I were an American), heard a lot out Trump’s mouth that would (e.g., VAT on incoming goods from Mexico, lower tax rates to keep business in the US and spur investment, renegotiating US job sucking trade deals).
Trump understands that globalization has not benefited the American middle to lower class but knows how to reverse that.
Then Lefty NBC Holt diverts the end of the debate to social issues (deliberately, so THAT is what is left on people’s minds…old trick, worked if you read today’s MSM take on the debate).
Social issues can be solved with a large sprinkling of faerie dust money if you believe Clinton…you cannot legislate nor buy good behaviour. If that were true, there would be no racism in the US.
Clinton promises everything to everyone but does not say how she intends to push that thru a Republican dominated Congress.
Trump on the economy says a lot, what it will cost, how more jobs will be created/saved, how to stop jobs being exported – it is appealing and, he is a Republican that will be working with a Republican majority Congress.
People talk with their hand on their heart, but vote with their hand on their pocketbook…well, except for T2.
Trump’s a smart guy, he learns from his mistakes.
Prediction: President Trump 2 – 1 in debates.
bsant54
Whatever the media says is irrelevant as they are owned by Wallstreet who owns Secretary Clinton.
Drudge Report says with 280,000 votes that Mr Trump won by 80%. I trust the people, not the bought and paid for media.
600,000 votes on CNBC. Mr Trump by 62%
Tipping point- Herd instinct- Maximum house prices-Debating foreign tax.
I sometimes think it is useful to watch a herd of sheep in a field and try and predict which way they will go- impossible.
Same thing with starlings in the fall. Thousands all swarming together, suddenly turning all at the same time. It can actually be a bit frightening. Panicking to buy, and then something else becomes important.
Randomness is the great equalizer for smart men and dumb alike. Economics is fascinating to me.
Which way the herd? Pet rocks? Health kicks? Food Fads?
I was doing ok with renting until this week when after 3 yrs the landlord increased the rent $50 per month. He claims that his taxes and mortgage have increased and needs the extra money.
I’m not sure if his taxes went up, but aren’t mortgages at an all time low?
I believe the law is I must pay or move, but doesn’t the risk of me moving and him missing a month or 2 of rent far out weigh the $600 increase. When I was a landlord, I enjoyed a reliable tenant and did as little as possible to rock the boat?
Any comments on what I should, or could do.
One $50 increase in three years? Seriously? — Garth
#38 Ace Goodheart
——————————————————————-
“At the end of your 5 year term, when you still owe hundreds of thousands of dollars that you have no means of paying, your 25 year mortgage has morphed into a demand loan. It is due immediately, in full, with any accrued interest. Pay it, or the bank can exercise power of sale, kick you out of your house and sell to the highest bidder.”
——————————————————————
Precisely.
And that, my disciples, is the 800 lb. gorilla in the room.
It will trigger the domino effect.
Get out while you can.
«If the Trumpian forces win, then the period from November 8th to the inauguration on January 20th – which will include a key Fed rate decision (Dec. 14) – could be a wild one for investors and markets. – Garth»
I’ll take that anytime over more stagnation in the long run caused by Clinton union pleasing, big government enforcing and downright envy policies.
Sure it requires a bit of nose pinching, but I hope Trump wins.
#128 that would be FLOCK of sheep, herd of cattle!
#44 Darryl on 09.26.16 at 8:01 pm
So if Ontario acts on the 15 % or so tax will it be on properties that sold after that date or closed after that date?
If it is acted on Dec 1 then I would assume that any contracts that were signed before Dec 1 would be ok . Even if they closed 90 days later ?
Would anyone here know ?
______________________
No one knows because the tax hasn’t been implemented yet. In BC they didn’t exempt deals already in place and many of us believe this was wrong.
No way to know what might happen in Ontario if anything. I can tell you the Liberal gov’t in Ontario will do anything to get elected (see gas plant scandal) so I’m expecting them to put the tax in place.
Does Garth ever sleep.
Noting the time stamps.
I’m 100% certain that Hillary knew the questions in advance. MSM has been o a restless quest to destroy Trump. Playing dirty in full view. Of course she knew the questions.
#129 rent went up. I think this guy is being sarcastic about the situation. No way that is a complaint from him.
Unless the user name Saint Herb is code for ‘out there’.
Hi Garth,
You said you don’t pay your condo fees and condo taxes. Can you or someone explain how? My gf is so damn house horny I swear she wants to leave me everyday because I rent.
She’s deep. — Garth
Last night, 26 Sep, The Agenda with Steve Paikin, featured the author of “The Wealthy Renter”, Alex Avery.
With new taxes, the confluence of boomer retirement and entry-level buyer skepticism born of almost impossible acquisition prices, the impermanence of work and gone, baby, gone benefits, new attitudes towards the cult of home ownership are taking root, spreading and crystallizing. And fast.
This new perspective will spread beyond the generational borders of the young.
IMHO, the jig’s up. Buy-in and carrying costs are just stupid and most everyone knows it.
It IS possible to get rich, be liquid and be ready for opportunity when it knocks.
http://www.cbc.ca/news/canada/choosing-to-rent-1.3766940
http://www.theglobeandmail.com/globe-investor/personal-finance/genymoney/renting-is-a-beautiful-thing-the-case-against-home-ownership/article31458725/
#126 Not a big deal on 09.27.16 at 5:03 am
66% Trump now. This is even when CNBC wrote some biased article proclaiming Hillary as the winner.
There is definitely a feeling of change in the air.
MF
Hi Garth, not all banks changed their underwriting guidelines. Just the scared ones.
The Globe and Mail reported Monday that Bank of Nova Scotia and Bank of Montreal have both updated their rules in recent days in ways that will require non-residents to provide extra documentation about their wealth and income when applying for a mortgage.
http://www.theglobeandmail.com/news/politics/finance-minister-pleased-by-banks-restrictions-on-foreign-home-buyers/article32054269/
Looks like they are keeping the sign.
Not to mention banks are pretty eager to open thousands of offshore companies.
https://www.thestar.com/news/world/2016/09/21/1-tax-haven-3-of-canadas-biggest-banks-2000-offshore-companies.html
We all know just how easy it is to get a mortgage at the bank for a foreigner. As long as you have 35% and a pulse, someone will give you a mortgage if you are a non-res. Canadian though? You need income and credit.
here are a major banks guidelines. Canadians is MUCH MORE stringent. I guess banks prefer foreign owners of homes.
https://www.cibc.com/en/personal-banking/mortgages/mortgage-offers/new-and-non-resident-offers.html
Seems like the gov isn’t regulating banks underwriting; instead, they are just asking nicely.
Prices went up by 10 12% in my mid sized East Coast town after 5 years of stagnation which resulted in 1/3 of the houses on my street going up for sale, unfortunately it looks like no one is buying
#136 Sam Malone on 09.27.16 at 8:18 am
Hi Garth,
You said you don’t pay your condo fees and condo taxes. Can you or someone explain how? My gf is so damn house horny I swear she wants to leave me everyday because I rent.
-In the sentence before Garth says he rents the condo.-
Who won the debate? Just as I figured. . .
Trump supporters say he did.
Clinton supporters say she did.
It’s called “conformation bias.”
Trump shot himself in the foot when Hillary was attacking him on not paying taxes. He didn’t deny it, just responded with “Because I’m smart!”
Good move Trump! Show what a fine example you are to common Americans who are burdened with taxes. The reason you average Americans pay taxes is you are not smart enough to game the system, nor rich enough to avoid them.
Behold your Commander and Chief! What is good for Trump is good for America, and vice versa! If Trump wins, America will get the Narcissist they deserve.
No wonder many millennials are voting independent.
Bloodening continues on MIC.TO Genworth. Maybe it’ll become a teenager again.
“And that, my disciples, is the 800 lb. gorilla in the room.
It will trigger the domino effect.”
Mixing metaphors sometimes produces interesting visuals, such as a massive ape playing with dominoes.
Wow did Hillary get spanked last night – the Trumpanator destroyed her on every topic.
Long live the Donald!
So, I’m listening to the pundits debate the impact of “The Debate” on the markets and surprised they’re not factoring in Rick Perry’s loss on DWTS last night.
#134 Smoking Man on 09.27.16 at 8:12 am
I’m 100% certain that Hillary knew the questions in advance.
___________________
“I prepared for this debate and I’m prepared to be President” – Secretary Clinton
Hard work and being prepared as a negative. Jeezzz…
#14 Had meeting with my Scotiabank Advisor. Told me everything fine. He discussed camping, I discussed Money. I feel change in the air. PB43
——————————————–
LOL @ PrairieBoy43….did you advisor tell you that ‘you’re richer than you think’?
#147 CJBob on 09.27.16 at 10:57 am
#134 Smoking Man on 09.27.16 at 8:12 am
I’m 100% certain that Hillary knew the questions in advance.
___________________
“I prepared for this debate and I’m prepared to be President” – Secretary Clinton
Hard work and being prepared as a negative. Jeezzz…
……………
If I was a political consultant for Trump the debate when perfectly for him. He didn’t lose support but gained some independents. Hillary was perfect playing the role of an established candidate. The herd hates Establishment.
Trump looked like an awkward outsider which was planned. He’s got a lot of ammo he didn’t use.
Why. The last debate is the one that counts. That’s the one people remember before going to the pools.
Trump played it perfectly.
Dr. Smoking Man
Phd Herdonomics.
Not many on this blog seem that interested in the bond market volatility, the demise of Deutsche bank and the addition of the Juan to the SDR? Yet, many seem so bullish on the US dollar? As long as the US remains the world’s largest debtor nation, the dollar will be vulnerable. Also currency devaluation is a standard technique for stimulating exports, repairing current account deficits and the like. Ultimately, and failing full economic recovery, the Dollar’s status as the world’s reserve currency is at risk, meaning it could be replaced by the currency of a stronger economy. Right now we are seeing a global currency war, by suppressing value of their currency they reduce the value of the debt. You could call this the race to the bottom.
By any objective standard Clinton trounced Trump in the debate. She was well prepared with policies and facts to back them up. Trump had only slogans and bluster. For Canada’s sake I hope she keeps on winning.
Trump certainly made it clear he would break the NAFTA treaty. Mexico would be the main victim but Canada would suffer as well. When NAFTA was negotiated the main US goal was unfettered access to Canadian oil. The Canadian negotiator (Riesman as I recall) traded that access for a number of trade advantages. Today the US has plenty of oil and won’t even approve the Keystone pipeline. Renegotiating a new NAFTA would be tough.
Garth is right again.
http://www.zerohedge.com/news/2016-09-27/global-housing-bubble-biggest-these-six-cities
SM is right. It was subtle. Clinton clearly lost and she played right into Trump’s game. Americans don’t like her because she’s scripted and bought. That’s the brand that follows her.
Trump let her fail spectacularly… Clinton continued the narrative that she’s scripted, polished and bought. Establishment to a T. Trump continued to brand himself the outsider that is fighting against Establishment. Fights for the Little Guy.
Clinton should have known better and changed course. But she didn’t. Got played. And lost the debate.
Very much preventable.
She should be thankful that she has the Electoral College votes in her favour. Very thankful.
Impressions are in. Trump had a masterful debate. Playing the unscripted outsider facing the Goliath of scripted, bought and paid for Establishment. Only a marketing noob couldn’t see it
http://www.dailymail.co.uk/news/article-3809204/amp/Most-snap-polls-Trump-winning-debate-landslide.html
What I took out of last night:
Clinton – Keep everything the exact same as is
Trump – Take a different approach to what is currently being done
#149 Smoking Man on 09.27.16 at 11:27 am
#147 CJBob on 09.27.16 at 10:57 am
#134 Smoking Man on 09.27.16 at 8:12 am
I’m 100% certain that Hillary knew the questions in advance.
___________________
“I prepared for this debate and I’m prepared to be President” – Secretary Clinton
Hard work and being prepared as a negative. Jeezzz…
……………
If I was a political consultant for Trump the debate when perfectly for him. He didn’t lose support but gained some independents. Hillary was perfect playing the role of an established candidate. The herd hates Establishment.
Trump looked like an awkward outsider which was planned. He’s got a lot of ammo he didn’t use.
Why. The last debate is the one that counts. That’s the one people remember before going to the pools.
Trump played it perfectly.
Dr. Smoking Man
Phd Herdonomics.
…………………………………………………………………..
Seriously ? “Trump played it perfect” He is not prepared due solely to the fact that he is a pretender to the office and not a contender. This guy is a joke and I am sure most Republicans are rolling their eyes at his buffoon gaffes. What the hell was the sniffing all about? Cocaine nose, heaving breathing as Hillery aroused him, or trying to regain his composure when asked a question that he has absolutely no idea how to answer? This guy has an answer for everything. Not necessarily the truth but just an answer that pops into his little noggin. Oh wait here is the answer compliments of Fox news. “The only true source of honest news”
Donald Trump early Tuesday dismissed speculation that he was sniffling during the first presidential debate, saying a microphone with an “issue” picked up his breathing.
“No, no sniffles. You know, the mic was very bad, but maybe it was good enough to hear breathing,” Trump said on “Fox & Friends.”
“But no sniffles. No cold.”
Trump caught attention on social media during Monday night’s debate for what appeared to be audible sniffling.
Earlier in the Fox show on Tuesday morning, Trump said his mic was failing and seemed to suggest that someone had sabotaged it.
“I had a problem with a mic that didn’t work. My mic was terrible. I wonder if it was set up that way on purpose,” Trump said.
“I don’t want to believe in conspiracy theories, of course.”
https://www.youtube.com/watch?v=_wd_ZITiiKs&sns=tw
#129 Saint Herb on 09.27.16 at 6:42 am
I was doing ok with renting until this week when after 3 yrs the landlord increased the rent $50 per month. He claims that his taxes and mortgage have increased and needs the extra money.
I’m not sure if his taxes went up, but aren’t mortgages at an all time low?
I believe the law is I must pay or move, but doesn’t the risk of me moving and him missing a month or 2 of rent far out weigh the $600 increase. When I was a landlord, I enjoyed a reliable tenant and did as little as possible to rock the boat?
Any comments on what I should, or could do.
——————————–
This isn’t meant as an insult, but you’ve been spoiled. So was I when I had a really good landlord that didn’t raise the rent for 4 years. It was a shock when he told us he sold, but at the same time, we should have saw it coming.
I don’t know how nice your current place is, or what city you are in, but landlords are legally entitled to raise the rent every year by a set amount. I would solemnly agree to pay it with minimal fuss, (but don’t act like you’re happy about it either and give her the idea she’s charging too little.)
exposures
…”Federal regulators…uncovered a $3 billion fraud involving fake mortgage assets.”
http://retheauditors.com/2016/09/25/tbw-plan-trustee-v-pwc-a-look-at-what-led-to-it-and-whats-next/
==========
non gaap reporting
http://www.marketwatch.com/story/which-non-gaap-metrics-will-likely-catch-secs-eye-2016-04-04
In January 2002, the SEC filed its first ever enforcement case against a company for inappropriate use of non-GAAP metrics. see Trump Hotels
Non-GAAP primarily used to fool unsophisticated
Thursday, September 8, 2016
Former Chief Financial Officer Of American Realty Capital Partners (“ARCP”) Charged With Accounting
https://www.justice.gov/usao-sdny/pr/former-chief-financial-officer-american-realty-capital-partners-arcp-charged-accounting
http://www.marketwatch.com/story/former-reit-executive-charged-with-accounting-fraud-for-using-non-gaap-metric-2016-09-08
#129 Saint Herb on 09.27.16 at 6:42 am
——————————-
Yes property taxes go up every year. Typically at least a couple hundred bucks.
Consider yourself lucky you’ve seen deflation in your rent over 3 years (no increases).
If you leave, your landlord could likely charge the next tenant even more. It will also cost you to move, and you will have to pay double rent for a month (rent on your old place plus rent on your new place).
check out this diagram /counterparties?
Systemic Risk Among Deutsche Bank and Global Systemically Important Banks (Source: IMF —
http://wallstreetonparade.com/
===========================
OFR Working Paper Shows Impact of Credit Default Swap Stress across the Banking System
By Stacey Schreft
Published: March 8, 2016
https://financialresearch.gov/from-the-management-team/2016/03/08/ofr-working-paper-shows-impact-of-credit-default-swap-stress-across-the-banking-system/
#142 Cramer
We should all start a non profit huh?
Hillarys and Trumps tax returns.
I really don’t understand why they would make any difference in who to vote for.
They didn’t write the laws. They’re both rich and they both take every legal tax break possible. The rich gets audited all the time because that’s where the money is. Don’t you take every write off you can?
The only thing their tax return would show is who picked the smarter CPA.
I seriously doubt that foreign ownership only make up of 10%. If that’s case, sales in Vancouver wouldn’t have drop 80% matter of weeks. It’s not fear by FOMO cashing out to cause the drop. It is a crisis Canada is facing when Foreigner using Canadian homes as a trade commodity. Believe all you want, 15% tax is least of your worry if it only affect 10% of the transaction. So bring on the tax to GTA and across the entire country and don’t forget about that 2% vacancy tax.
HMRC is increasingly pushing to treat what would previously have been seen as aggressive tax avoidance as tax evasion…
HMRC ramps up number premises raids
https://www.accountancyage.com/2016/09/26/hmrc-ramps-up-number-premises-raids/
=========================
Former IMF head Rodrigo Rato on trial over bankers’ luxury sprees
https://www.theguardian.com/business/2016/sep/25/former-imf-head-rodrigo-rato-on-trial-over-bankers-luxury-sprees
2012
Rato will stand trial with 65 other former bank executives over allegations they spent $13.5m on personal expenses
Bankia was nationalised in May at a cost of €23bn (£18bn) to the public purse after its share price fell by 75% in less than a year.
My takeaways from the debate:
1. People who supported Trump will continue to support Trump because he was just as ego maniacal, racist, and blustery as ever.
2. People who supported Clinton will continue to support Clinton because she was just as prepared, articulate, and collected as usual.
3. Undecided voters learned nothing new. They basically have a choice between that loud drunk uncle at your friend’s wedding and establishment status quo.
RE: #136 Sam Malone:
“My gf is so damn house horny I swear she wants to leave me everyday because I rent.”
Get out. Just imagine the same gf as an ex wife. Time to go. There are many fish in the sea……
Ok. I have refrained from saying anything about the U.S. election. Until now.
When HC was running against BO my stance was “anyone but HC”. And for Nov./2016- “anyone but HC”. “HC is merely the female version of BC, only worse.”
Oops……My last Post under Freedom, was me.
I’ll alert the media. — Garth
“If you leave, your landlord could likely charge the next tenant even more.”
Doubtful. A more realistic outcome is the landlord gets squeezed. So much new supply has been brought on that rents have been stable, if not slightly declined over the past number of years.
It will also cost you to move, and you will have to pay double rent for a month (rent on your old place plus rent on your new place).”
I’ve rented at various times in my life, and it was not a problem to arrange with the owners involved so that extra rent wasn’t involved. I guess individual luck may vary, but the owners I’ve dealt with have been very professional. Of course, I put in quite a bit of effort to screen who I rented from, just as they probably put in some effort to screen me.
#131 pBrasseur
Sure it requires a bit of nose pinching, but I hope Trump wins.
————————————
Nose pinching? What a colossal understatement! If Trump wins you’re going to have to glue shut every orifice you have.
Bubbliest real estate market that is!!
http://business.financialpost.com/personal-finance/mortgages-real-estate/vancouver-tops-international-list-of-bubble-cities-on-global-real-estate-risk-index
Congrats YVR!!
#153 WalMark of Sadkatoon on 09.27.16 at 12:40 pm
SM is right. It was subtle. Clinton clearly lost and she played right into Trump’s game. Americans don’t like her because she’s scripted and bought. That’s the brand that follows her.
Trump let her fail spectacularly… Clinton continued the narrative that she’s scripted, polished and bought. Establishment to a T. Trump continued to brand himself the outsider that is fighting against Establishment. Fights for the Little Guy.
Clinton should have known better and changed course. But she didn’t. Got played. And lost the debate.
Very much preventable.
She should be thankful that she has the Electoral College votes in her favour. Very thankful.
………………………………………………………………..
I can agree the Hillery Clinton is part of the Washington crowd, however Donald Trump is not the correct candidate for the Republicans. This guy touts himself as the next savior. He has had four Bankruptcies, 1991, 1992, 2004, 2009, trouble with antitrust laws, Beauty Pageant Scandals, Condo Hotel Failures in New York, Florida, Mexico, in the mid-2000s, Racial Housing Discrimination in New York City in the mid 70s, Tenant Intimidation in New York City between 1982 and 1986,
using undocumented Polish Workers in New York City in 1980, Undocumented Models in New York in1999, Breaking Casino Rules in New York and New Jersey, Refusing to Pay Workers and Contractors from the 1980s to present day, Trump Institute Boca Raton and elsewhere in 2005, Trump University, The Donald J. Trump Foundation reportedly used $258,000, most of it other people’s money, to settle legal disputes for the Republican nominee, Trump also has an unprecedented 3500 Lawsuits against him. Trump uses lawsuits to distance himself and his brand from failing businesses and bad investment decisions. Clearly he is not the correct Republican representative for the position. He is truly out of his league and probably out of his mind!
As for Hillery being played by this buffoon, not likely dogs, she is too smart to fall for his lies and misrepresentations. Perhaps she is a better lier, but then need I say more “politicians”.
Vancouver tops list of ‘bubble’ cities on global real estate risk ranking
http://business.financialpost.com/personal-finance/mortgages-real-estate/vancouver-tops-international-list-of-bubble-cities-on-global-real-estate-risk-index
Canada’s priciest city to buy residential real estate also has the biggest risk of being in a bubble, according to a new international study of real estate markets.
The UBS Global Real Estate Bubble Index 2016 listed 18 cities around the globe and their risk and found Vancouver with the greatest probability of a bubble.
“Real house prices have increased by more than 25 per cent since 2014 in the wake of a weak Canadian dollar which apparently stimulated Asian demand even further,” the bank said, in its 22-page report released Tuesday. “Moreover, loose credit conditions have offset the economic slowdown due to weak commodity prices. Mortgage growth rates have been accelerating lately. In response, to still-high foreign demand, the local government has introduced an additional property tax for non-resident investors. The risk of substantial price correction appears very elevated.”
After watching the debate last night, I’m doubling down on my conspiracy theory that Trump is working with the Clintons to get her elected.
He only mentioned her emails once, a softball lob that she quickly batted away with a poised, well-rehearsed answer.
Nothing about Benghazi?
Nothing Whitewater?
Nothing about cash for influence at the Clinton Foundation?
Meanwhile he lets her call him a racist THREE TIMES? To his face?
I could totally believe that the Clintons started the whole ‘birther’ rumor back in 2008, to discredit Obama when he was a democratic rival in that year’s election. At the time, the Clintons were good friends of the Trumps’ (their daughters were in school together).
As an outspoken public figure and media hound, Trump was the perfect vehicle for that bit of gossip. Better him than a real Republican, whom the Clintons’ could never trust to keep the source of the rumour secret.
how to “expatriate ” funds -repeat mirror trading?
nickname: konvert, which means “envelope” and echoes the English verb “convert.” In the English-language media, the scheme has become known as “mirror trading.”
http://www.newyorker.com/magazine/2016/08/29/deutsche-banks-10-billion-scandal
Hillary Clinton and Donald Trump go into a bakery. As soon as they enter the bakery, Trump steals three pastries and puts them in his pocket.
He says to Hillary, “See how clever I am? The owner didn’t see anything and I don’t even need to lie. I will definitely win the election.”
Hillary says to Donald, “That’s the typical dishonesty you have displayed throughout your entire life, trickery and deceit. I am going to show you an honest way to get the same 3 pastries without stealing or lying, and also prove that I’m much more clever than you!
Hillary goes to the owner of the bakery and says, “Give me a pastry and I will show you a magic trick.”
Intrigued, the owner accepts Hillary’s offer and gives her a pastry Hillary swallows it and asks for another one. The owner gives her another one. Then Hillary asks for a third pastry and eats that, too.
By this time, the owner is starting to wonder where the magic trick is and asks, “What did you do with the pastries?” Hillary replies, “Look in Donald’s pocket”!
Glad I’m not taking financial advice from some of you.
Gartho check it out – remember ole 2348 Oliver Cres??
Well they’re still trying to sell it for $3.8 million bucks!
That’s so yesterday, good luck with the new foreign tax, lol!
http://www.darylgrimson.com/Properties.php/Details/338
“Real Estate Bubbles: The six cities at risk of bursting Vancouver, London, Stockholm, Sydney, Munich, Hong Kong”
http://www.visualcapitalist.com/real-estate-bubbles-6-cities-top-list/
Trump is confused about the Fed and Janet Yellen… says during last night’s debate:
“And we have a Fed that’s doing political things. This Janet Yellen of the Fed,” he said. “The day Obama goes off, and he leaves, and goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you’re going to see some very bad things happen, because the Fed is not doing their job. The Fed is being more political than Secretary Clinton.”
This makes no sense. How has she done a bad job? By not raising rates sooner? Yellen is doing exactly nothing to raise rates, untill after Obama is out? Does he want the Fed to raise them or leave them alone. Trump, make up your mind!
#174 Smartalox on 09.27.16 at 4:32 pm
After watching the debate last night, I’m doubling down on my conspiracy theory that Trump is working with the Clintons to get her elected.
He only mentioned her emails once, a softball lob that she quickly batted away with a poised, well-rehearsed answer.
Nothing about Benghazi?
Nothing Whitewater?
Nothing about cash for influence at the Clinton Foundation?
Wait for the third debate. The best time to change peoples minds is days before the election. That is when Mr Trump will unload.
Remember when people used to say there was no subprime lending in Canada?
These mortgage providers, which fall outside the responsibility of Canada’s main banking regulator, increased their share of the $1.4 trillion mortgage market to about 13 per cent last year from 6.7 per cent in 2007, according to the finance department. The lenders, also known as the shadow or private market, cater to the self-employed, new immigrants and those turned down by regular banks. They include publicly listed companies, investor groups and retirees who borrow against their homes to provide funding.
http://business.financialpost.com/personal-finance/mortgages-real-estate/joe-schmo-lenders-double-stake-in-canadas-mortgage-market
Looks like we have at least 182 Billion worth of it in Canada minimum.
In the US, during their Subprime crisis, the amount of subprime arms was 6.9%. Which 43% of them went into foreclosure. This dragged upwards of 14% of total mortgages into foreclosure.
I wonder what will happen in Canada…