Lessons

GTA erupts 33% y/y in March - here. What next? - tonight.

We have a wrinkly crisis. I hear the same story every day. “We just found out that Mom and Dad saved, like, nothing. We thought they were okay, but since he retired they’ve been asking us for money – which we don’t have because of daycare – and it’s getting worse. They’re living on their CPP. That’s it. What can we do?”

Lots of lessons here. Some of them you don’t want to hear.

First, parents must be transparent about stuff like this with their adult offspring. Get over being authority figures and stop pretending everything is fine. It’s not. If you’re living on the public dole at age 70, you stand a good chance of being a burden to your kids for the next 15 years. So all of you need to talk and find a solution. If you own a house, sell it, invest and rent. That will free up capital, increase income and cut costs. And, no, GICs or bonds are not an investment option. Ditto for giving your kids money. That will solve nothing.

Second, adult children must change the relationship. The switch from being a dependent and taker to a guardian, protector and decision-maker is slow, subtle and difficult. But it’s usually inevitable. When your parents retire, set a power of attorney in place for them so you have the legal right to make tough choices on their behalf when necessary. If they refuse to sell the house, wanting to live on Meow Mix so they can pay the property taxes, take action on their behalf. If dementia sows its evil seeds, it’ll be your responsibility to offer logic and patience. Don’t wait until then to explain.

Third, face up to failure. Living six or seven decades, then having to subsist on what the government hands out is exactly that. The public pension plan was never designed to support people, just supplement their own savings and investments. Buying a house and paying it off is not a financial plan, because after retirement what people need is cash flow, not real estate. You can always rent a roof. You cannot rent an income. The sad reality today is that despite being massively better educated and informed, a whole new generation is working its way towards old-age penury. They have embraced debt, shunned financials, and adopted a one-asset strategy. So much risk. So much closer to failure.

Therefore (fourth) don’t let this happen to you. There’s no real safety net out there. In fact a new report from the eggheads at CD Howe Institute casts doubt on the Trudeau government’s vaunted ‘enhancements’ to the CPP. The only way today’s moisters are going to get slightly better pensions when they retire is if the pension plan administrator, after all fees and costs, is able to achieve a return of 3.4% over the course of 75 years. Given the fact government bonds currently pay 0.7% and the number of contributors will be going down as the recipients grow, this is no slam dunk. The report envisions circumstances in which benefits will have to fall.

It’s also inevitable the T2 gang (or the gang coming after that) will reach the same conclusion the Harper gang did – paying everyone OAS at age 65 is just nuts. The cost of that alone in a decade or two will be staggering – $109 billion by 2030 (compared to just over $40 billion a year now). Thus, it’s a safe bet today’s 25-year old will not be picking up a monthly cheque in 40 years the way retiring parents are now. And yet, she will be paying more in income taxes and CPP benefits. Probably lots more, given the rampant accumulation of new federal debt.

So, fifth, the sooner you trade the leveraged condo for a brimming TFSA, the better. If you can avoid spending formative years of your career making mortgage payments, do so (rent is cheaper). Don’t save. Rather, invest. Try to live a balanced and diversified life, understanding that when 70% of us have no corporate pensions waiting, you’ll likely need a chunky portfolio in order to cruise through two of three decades of retirement. And be realistic. The number of 32-year-olds I encounter who think they can retire at 40 is awesome. They can’t. They won’t – if they also expect the intervening years to bring babies and a house, mopping up their savings and saddling them with debt.

Watching parents struggle is wrenching. You have an obligation to help. You have a bigger one not to foist it on your own kids. So I fear what’s coming.

164 comments ↓

#1 Victoria Real Estate Update on 04.04.17 at 6:14 pm

DETACHED SALES IN JAN., FEB. AND MARCH SIGNIFICANTLY LOWER THAN IN 2016

Greater Victoria’s market correction process is solidly in place, as evidenced by significantly lower year-over-year sales of detached homes in the first three months of 2017.

January: – 18% y/y
February: – 25% y/y
March: – 25% y/y

BELOW AN AVERAGE YEAR FOR GREATER VICTORIA

Detached sales in the first three months of 2017 were 6% lower than in 2007, which was an average year for detached sales in the region. Note that adjusting for 10 years of population growth (to make an apples to apples comparison) would make this number look significantly worse.

FAR WORSE THAN THE TYPICAL SEASONAL SALES DECLINE

When a housing bubble officially kicks off its market correction process, it’s always sales that first waves the red flag.

We saw this after April (approximately) and through to the end of last year with monthly sales declines that were significantly bigger than typical seasonal sales declines in Victoria. That it was more than just seasonal was discussed in several of my posts last year.

For example, detached sales fell a shocking 69% from April to December of last year, which was significantly more than a typical seasonal sales drop over that 8 month period in Victoria.

Clearly Victoria was following Vancouver’s lead.

As I wrote last year, it wouldn’t be long until we would begin to see significant monthly year-over-year sales declines as undeniable proof that the market correction process had taken root in 2016. And that’s exactly what happened in the first three months of 2017.

SEASONAL SALES FLUCTUATIONS CAN CAUSE CONFUSION

In the US in 2012, there were 285 cities with a population of at least 100,000. If you look at 40 years of housing sales stats for each of these cities (and Canadian cities as well), you’ll find something that happens virtually 100% of the time – sales in the 3-month period of March/April/May are significantly higher than in October/November/December. Sales numbers express seasonal highs and lows every year.

That we should expect more sales in March than in December is obvious.

That detached sales increased from December to March across Greater Victoria is evidence of northing more than the normal seasonal sales bump that we see every year.

It doesn’t mean that Victoria’s market correction process has been shut down. We know the opposite is true – that this process has been firmly established by March’s 25% y/y sales decline (also January: -18%, February: -25%).

A bubble’s market correction process always moves from sales waving the red flag to falling prices and a deep price decline. And no bubble escapes this certainty. Markets with high levels of speculation always experience a particularly severe bust.

#2 Lulu on 04.04.17 at 6:16 pm

Urban corp properties hikes it’s rent double for tenants starting July 2017… Wow, this is getting crazy, who will pay that much of rent in this building? I smell something rotten very bad and start to erupt very very soon. Be prepare, and be afraid, be very afraid..

#3 Victoria Real Estate Update on 04.04.17 at 6:21 pm

INTERESTING FACTS ABOUT THE US BUST THE CAN BE APPLIED TO CERTAIN CANADIAN MARKETS

How much do you know about the US housing bust? If you have an average understanding of it, you probably think that every major American city experienced a severe housing market correction.

There certainly is a list of cities that underwent severe price corrections. You may have heard about what happened in these west coast cities:

San Francisco: – 45%
Los Angeles: – 41%
San Diego: – 42%

During the price run-ups in these cities (2000 – 2006), it was well-know that speculation played a major role in pushing prices to insane, unsustainable levels. Those who understood housing bubbles knew that the extreme price run-ups that took place in these cities would, naturally, be met with extreme price downturns.

And that’s exactly what happened.

What you might not know is that there is also a list of US cities that didn’t undergo severe housing busts. In fact, the following stats show that some US cities experienced rather mild market corrections in comparison to the cities that experienced busts. These cities are among those that were not know for California-like levels of speculation from 2000 – 2006, and their price declines show it:

Dallas: – 11%
Boston: – 18%
Denver: – 12%

HIGH LEVELS OF DESTRUCTIVE SPECULATION IN CANADA

It’s widely known that speculation is out of control in certain Canadian markets. Toronto is leading the pack right now, but Vancouver and Victoria went through extended periods of speculation in recent years, and that may still be the case but to a lesser extent now. Whatever the case, the damage has been done and all three of these cities will face the natural consequence of high levels of speculation – a deep price downturn.

A nasty outcome awaits every bubble.

#4 Pete from St. cesaire on 04.04.17 at 6:30 pm

If they refuse to sell the house, wanting to live on Meow Mix so they can pay the property taxes, take action on their behalf.
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There’s a slippery slope, in terms of where society is heading. I can’t believe you’d suggest this. People have to be allowed to make their own bad decisions.

NEXT:
Can’t you blog-dogs see what is written betwen the lines here? The future is bleak at best. Spend what you have now if you ever want to have the ‘luxury’ of enjoying the fruits of your own labours. And for those just starting out; don’t waste your best, youthful years working hard just to wind up losing it all in the financial train-wreck ‘the western world’ is heading for at full speed.

#5 jess on 04.04.17 at 6:31 pm

CIBC TAL latest comment on rent controls in GTA outdated

I don’t think this is a good idea either!
Auction sites want to rent apartments to the highest bidder Startups aim to be the eBay of the rental market

April 03, 2017 11:30AM

#6 David McDonald on 04.04.17 at 6:35 pm

La vieillesse est un naufrague-Charles de Gaule
(Old age is a shipwreck)

While I agree that managing one’s own finances builds a stronger citizenry I think a larger contribution to the CPP would be a safer bet for most. The CPP has indeed provided excellent returns in the past that may not be possible in the future. However given that track record I bet the CPP will do better in future than the average individual investor.

#7 Afraid to Sell in North Vancouver on 04.04.17 at 6:36 pm

Well, my question is what about leverage at some point having leverage is a good thing. Yes it increases risk of paying back the debt if your asset purchase goes South but owning a mortgage free house in North Vancouver makes me want to take out a HELOC for a million and put the money in a well balanced diversified ETF etc. Create cash flow and wealth… Yes or No

#8 Donald J Trump on 04.04.17 at 6:40 pm

Sobering thoughts! Parents and adult kids both asking for support $$$. Must put my foot down.

#9 Grey Dog on 04.04.17 at 6:44 pm

Wow, you are a ray of Sunshine today Garth! I’ve put up with walks in the rain and wet dog smell in the house all day, and now this good news! At least today’s picture gives one a reason to smile today.

Personally I don’t think the Young should be subsidizing Parents especially if they lived high off the hog. I recommend kids introducing Parents to the local library and read every Jar Lady book…Gail Vaz Oxlade. Never give them money, sure fill the cupboards and freezer and fridge but NEVER give money.

True Story: People would always show up at Church needing money, yet once we started handing out Grocery Store money cards, guess what, no one shows up asking for handouts anymore!

#10 Pete from St. cesaire on 04.04.17 at 6:45 pm

CBC Headline: Can’t afford a home? Buy with a friend, or maybe even a stranger.
http://www.cbc.ca/news/canada/toronto/can-t-afford-a-home-buy-with-a-friend-or-maybe-even-a-stranger-1.4032457

#11 HD on 04.04.17 at 6:47 pm

My folks are pretty much in the same situation. They are very hush hush about their finance so I have to force the information out of them when the topic comes up….even then, I don’t feel like I have the full picture because they won’t disclose everything.

I’ve tried to reason with them for years…..they simply won’t listen.

Nothing more I can do at this point.

Best,

HD

#12 The Fat Lady on 04.04.17 at 6:48 pm

All will be well……Lewenza has told us so.

In a few years oil will be at a 150 bucks a barrel. All our debts will be paid. Life will be easy for us Canadians.

I have nothing to worry about for another Lewenza has painted us a bright pretty future.

So take that!!!

#13 Stone on 04.04.17 at 7:04 pm

If the masses are too stupid to save up for their retirement days, maybe it’s time for a universal forced investment plan and I don’t mean CPP or OAS/GIS because that’s a joke. You can’t live on only that. Funds get invested in low cost ETFs in a balanced portfolio. Set a criteria that if by a certain age you haven’t accumulated a certain investment portfolio amount, you get placed on the forced investment plan to ensure you have something. Sometimes a kick in the pants is the best solution. Think that’s authoritarian? Well, the alternative is not really appealing. Cat and dog food is for your pets. Not you! And it’s more expensive than you think.

#14 Housing market to crash on 04.04.17 at 7:04 pm

Victoria Real Estate Update #1
What? You mean shyster realtors with 6 weeks training lied?

#15 Sam the Sham on 04.04.17 at 7:06 pm

What to do with the old folks? Maybe we will, in the future, adopt the wisdom of the aboriginals. Although it’s no longer politically correct to mention it, it was quite common in aboriginal societies to take granny out into the woods and leave her when times got tough and there was too many mouths to feed. I sounds harsh to us today, but it may come to that in the future. For now just give granny a big hug and an extra helping of mashed potatoes.

#16 I'm stupid on 04.04.17 at 7:07 pm

But Garth you can rent cash flow, it’s called I hate my kids reverse mortgage. I wonder how many will be going down this path in the next decade, its a shame.

Sucks to be one of them. Live in reverse if you want to be financially set in old age. It’s ok to be poor when you’re young, not so much at 70. Can you lease that Porche sure, but should you?

#17 Long-Time Lurker on 04.04.17 at 7:12 pm

Good work, Garth!

Thank you for your service!

There’s a heart of gold under that macho exterior!

#18 Housing market to crash on 04.04.17 at 7:13 pm

Rent control will crash the condo market. Currently landlords rent for cash flow negative to get renters. Then after a year they jack up the prices forcing renters to either pay up or look for other accommodations. Moving is time consuming , costly and logistically may be bad to move. With price controls landlords are forced into cash flow negative with no chance of hiking the rent to cash flow positive. Plus it makes it harder for flippers to give an unreasonable hike in prices that would force people out just so they can sell it easier. Rent control would crash this condo scam and every banker and realtor knows this to be true. That is why they are against it.

#19 AGuyInVancouver on 04.04.17 at 7:14 pm

#1 Victoria Real Estate Update
What on earth do your posts have to do with Garth’s article?

#20 Controller on 04.04.17 at 7:16 pm

Garth is correct (Mandatory suck up).
I am the perfect example. Found out a year ago that my 75yr old parents, who I thought were fine financially, had massive consumer debt and a big mortgage on their house. Living off CPP, OAS, and a small work pension. Mom was diagnosed with Dementia and missed a bunch of payments while Dad was watching TV all day.
It took me a year to get a handle on everything. Talk to your elderly parents today. Please.

#21 Richest man in Babylon on 04.04.17 at 7:19 pm

From Section 1 – Seven Cures for a Lean Purse
https://en.wikipedia.org/wiki/The_Richest_Man_in_Babylon_(book)#Seven_Cures_for_a_Lean_Purse

Cure #1 Start thy purse to fattening
The very first step is for every 10 coins of income save 1 coin immediately, and budget to only spend 9. “Their purses will start to fatten at once and their increasing weight will feel good in their hands and bring satisfaction to their souls.”

Cure #2 Control thy expenditures
We often hear people complain that it’s too hard to save, but the truth is people could have an income to $50k a year or $500k a year, yet still have nothing left. “That what each of us calls our necessary expenses’ will always grow to equal our incomes unless we protest to the contrary.”

Cure #3 Make thy gold multiply
Simply put: invest your savings, and GICs at 2% interest don’t count. “Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to the income, a stream of wealth that shall flow constantly into thy purse.”

Cure #4 Guard thy treasures from loss
“The first sound principle of investment is security.” It is tempting to put your hard earned (and hard saved) money in that penny stock / hot shed that will surely double in no time, especially when your friends and family are urging to do that, you could very well lose it all. “Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.”

Cure #5 Make of thy dwelling a profitable investment
Well, there was never a housing bubble in Babylon, or this cure would’ve probably been modified. Even if you must buy a house, stay within cure #1 and #2. Pay within your limits.

Cure #6 Insure a future income
This is most relevant to today’s blog. If you care about your family make sure your finances are taken care of for your retirement. “Provide in advance for the needs of thy growing age and the protection of thy family.”

Cure #7 Increase thy ability to earn
“A man must set concrete goals and work to achieve them. These goals should not only be to advance in one’s career or one’s position, but also to become wiser and more knowledgeable. Further, if a man respects himself, he must do the following:
– Pay his debts promptly and not stay in debt.
– Take care of his family.
– Make a will.
– Have compassion upon those who are injured and smitten by misfortune and aid them within reasonable limits; do deeds of thoughtfulness to those dear to him.”

#22 S.Bby on 04.04.17 at 7:38 pm

So if you’re old and you have racked up a bunch of debt and then you die, what happens to your debt? (This is a trick question).

#23 crowdedelevatorfartz on 04.04.17 at 7:39 pm

@#4 Technical
“Just look at the protests over pension bonuses being cut in Greece today by seniors….”
********************************************

True, but then again , the average female govt worker in Greece RETIRES at 47 and the men at 52……and they wonder why their system is broken.

Had this discussion today at work.
WHY arent basic financial lessons being taught in say High School?
How to balance a cheque account.
The dangers of compound interest.
Debt.
Credit.
Needs vs Wants
and on and on and on, but no…. dat stuff is….like…. boring
Thank God for the politically correct times we live in
We have endless drivel about LGBTQ rights and Transgendered bathrooms to keep the braying proletariate masses busy.

#24 rent to price ratio on 04.04.17 at 7:40 pm

Is it still that great in Toronto / GTA?

#25 NS Guy on 04.04.17 at 7:44 pm

“paying everyone OAS at age 65 is just nuts”

Excuse me, but I worked hard all my life and paid into the system. My first job paying taxes was when I was 14 and I’ve been paying taxes ever since.

At various times of my career, I was in the 54% marginal tax rate.

My pension (CPP and OAS) better be there for me at age 65 or there will be hell to pay. Yes, I’ve got a TFSA and an Investment Account, but that doesn’t mean the government doesn’t have to pay me what has been promised for the past 40 years.

#26 I'm Not Poloz on 04.04.17 at 7:47 pm

POLOZ wants to cut interest rates next week!

POLOZ told me that the exports aren’t enough, so he will cut interest rates and introduce Quantitative Easing to “stimulate” the economy like a female teacher teaching sexual education to a 10-year-old schoolboy at the back of her sedan.

POLOZ wants a 60-cent Loonie very badly! He wants to pooch the loonie to even the 40-cent, even the 30-cent or high 25-cent range, if that means it will help boost exports for Canada.

#27 Binder Dundat on 04.04.17 at 7:47 pm

“You can always rent a roof. You cannot rent an income.” – Garth Turner

Awesome. I’m going to engrave that in a nice slab of wood and mount it on a wall somewhere. S’okay with you?

#28 crowdedelevatorfartz on 04.04.17 at 7:52 pm

@#22 babylon Society

I never forget the Ferengie Rules of Aquisition

#1. Once you have their money….never give it back.

#16. A deal is a deal…unless a better one comes along

#37. The early investor reaps the most interest.

#59. Free advice is seldom cheap.

#74. Knowledge is profit

#106. There is no honor in poverty.

#141. Only fools pay retail.

#202 The justification for profit IS profit.

#219. Possession is eleven tenths of the Law.

#

#29 prairie person on 04.04.17 at 7:52 pm

I had POA and was Executor for my parents. Even so, with them living half a continent away, it wasn’t their spending habits I had to deal with. It was all the relatives and friends who wanted some of their money. It’s amazing how unscrupulous people are when greed is involved. The other side of this issue is that kids are quite capable of ripping off their elderly parents. While protecting my parents, I came across dreadful situations in which, for example, a daughter had “borrowed” her mother’s credit card and maxed it out. A grandchild who, during her grandmother’s funeral, skipped the funeral, went to her grandmother’s house with a UHaul and cleaned out the house. Never mind the fact that there were, besides her parents, six uncles and aunts. The undertaker said to me it happens in the best of families. So, not enough money is a problem. Having money is a problem. Non of the posters mention actually loving their parents. Only that their parents are a problem. If you care about your parents, heck, if you love your parents, be prepared to defend their interests against all comers. That includes the churchy types who come by to suggest that the way to heaven is easier if that money is donated to whatever church it is that the visitor espouses. Good luck

#30 barnz0rz on 04.04.17 at 7:54 pm

32 year olds retiring at 40…. LOL.

#31 why sell? on 04.04.17 at 7:54 pm

Why sell the house that grows at 30% per year in value?

Let the adult kids support the elders and watch the elders’ houses grow in value, which, after the estate sales, will more than cover the expenses on supporting the elders.

Easy!

#32 crowdedelevatorfartz on 04.04.17 at 7:56 pm

@#15 Housing to Crash
“What? You mean shyster realtors with 6 weeks training lied?”
********************************************

Easy now. Devils Advocate’s heart rate just jumped…….what am I saying ?
He’s a Devilish realtor. He doesnt have a heart……or…apparently, a soul.

#33 joblo on 04.04.17 at 8:01 pm

You forgot sixth, leave the overpriced country of Kanada for 10 years and return when you are dribbling soup off your chin.
Its a big world out there, friends? Make new ones, Family? really they are busy with their own lives.
Fly back at Christmas.
It’s not that hard.

#34 jess on 04.04.17 at 8:13 pm

disengaged city? cheer up maybe there is an app for that
https://www.theguardian.com/world/2017/apr/04/vancouver-loneliness-engaged-city-taskforce-canada

boondoggles & scandals BC from Campbell to Clark
https://thetyee.ca/Opinion/2017/04/04/BC-Liberal-Falsehoods-Scandals-Clark/

#35 bigtowne on 04.04.17 at 8:16 pm

The latest “Bruhaha” in the Media and Question Period on the Hill is: Gee Golly Martha those Bombardier EXEC’s sure got some nice take home pay raises…

Such a flurry of comment and even many protesters outside Montreal headquarters in the cold April breeze demanding some answer to this corporate free-for-all.

Judge Judy would fix this. The Plaintiff (taxpayers’ money) vs. Bombardier. Judge Judy would raise her eyebrows to the top of her hairline and accentuate showing all of her teeth: “Give the money back to the taxpayers” and “Outsource the CEO jobs to India”.

Boy, that Judge Judy fixes it every time.

#36 Entrepreneur on 04.04.17 at 8:28 pm

Common knowledge is that most people are poor so poor people usually live pay cheque by cheque with a lot of ups and downs (now debt). Most people know about the savings and planning but the day-to-day existence plays into the role.

And (have to agree with # Peter from St. Cesarie) that “the future looks pretty bleak…” I think our great leaders have forgotten how to govern their own nation first. And the free international trade agreements should be given a new name that represent their own interest and not the people. Lords of the Earth or the other end.

#20 A Guy in Vancouver…it is about the economy.

#37 The Dude on 04.04.17 at 8:28 pm

Fed Up #123 How about utility? on 04.04.17 at 1:29 pm

Renting has become serious liability in Toronto and Vancouver. Insanely expensive with zero guarantees of stability. Stay where you are if you are happy. No one is forcing you to sell. Recommendations of selling and renting in these 2 cities has proven to be very poor advice in the past 10 years regardless of good intentions of who offer it. This “sound” financial advice based on old data that has yet to show any significance. In fact almost everyone in these 2 markets regrets doing so as they are finding renting or buying completely unaffordable. Oh and “moving elsewhere ” is nowhere near as simple as it sounds. People who live in the real world with careers and families know this.

—————————-

This sums things up perfectly. No mention of rising rents in these articles or the lack of rental supply. Not sure why Garth hasn’t addressed this point. Counter that with lower interest rates and the greater fools are those who stayed out of the market over the last 8 years. It will take a massive correction just to match the lost opportunity at this point.

#38 The Wet Coast on 04.04.17 at 8:28 pm

The problem with parents that have not planned or have the discipline to save, is they tend to have offspring that behave the same way. Not always, but the apple usually doesn’t fall far from the tree. In my family and my wife’s family, the children are all successful and self sufficient, and the parents are/were as well. Go figure.

#39 Andrewski on 04.04.17 at 8:36 pm

You are spot on Garth. I helped my 90 year old parents sell their home of almost 40 years, thankfully a huge equity came with the sale, as Mom has dementia and lives in a care home, while Dad lives in a seniors apartment, which doubled their costs from when they lived in the big family home. We have POA in place (thankfully before Mom’s TIA’s) & I am joint account holder on all their financial accounts, except of course their RIF’s & (maxed out) TFSA’s. Huge relief for our family!

#40 Linda on 04.04.17 at 8:38 pm

NS Guy – the government does have an obligation to pay CPP as contributions are mandatory. You can skip out by being paid under the table, but why? CPP is Canadian’s universal DB pension plan. Sure, it pays peanuts but – maximum contributions per year are around $2,600 so the payout reflects what was paid in. OAS on the other hand comes out of government revenues – our tax dollars. So the government has a lot more flexibility as to how much they pay & to whom. Our financial advisor has told us not to count on getting OAS when planning for retirement. The presumption is that it will end up being means tested just like GIS is & only the most poverty stricken seniors will qualify.

#41 web2050 on 04.04.17 at 8:40 pm

Would love to hear your professional critique of this ridiculous one asset class retirement strategy:

<>

From:
http://www.cbc.ca/news/canada/toronto/can-t-afford-a-home-buy-with-a-friend-or-maybe-even-a-stranger-1.4032457

Perhaps if everyone could just buy one home instead of 10, we would not be in this predicament to begin with.

#42 web2050 on 04.04.17 at 8:42 pm

I am referring to this strategy:

” The ultimate goal is to have 10 properties purchased by the time they’re 35, with the thought that they’d all have 25-year mortgages so they’d be paid off by the time they are 60.

“Even with no appreciation with the house and no appreciation in the rent, we’d be making about $120,000 in rent from the properties and we’d have $2 – $2.5 million in real estate holdings,” he said. “It’s the ultimate retirement plan.” ”

#43 Millenial on 04.04.17 at 8:44 pm

Driving to work in Toronto today… radio DJs between songs talking about real estate, personal anecdotes about buying property, how they couldn’t afford their street anymore. Working at my office 2 hrs later in Brampton, drilling on some lady’s tooth, in between songs radio DJs talking about real estate how young people are screwed.

I feel like Toronto has reached Vancouver mania. If there’s ever a hard crash for real estate in Canada our economy is gonna take a BIG hit, could plunge us into a bad downward spiral. It’s not too late to get out of the Canadian dollar.

#44 crossbordershopper on 04.04.17 at 8:44 pm

#34 joblo is right, leave canada, come back when you are 65. come annually to visit family and friends, Ontario is lovely in the summertime.
why live here, get the benefits of the country, but live somewhere where no one asks questions like taxes, or what are you doing here etc.
and prices are much cheaper. i am in florida, kinda working, making cash, no paperwork no nothing, cash, and i come back to Canada anytime i want, and when i am 65 i get my goverment pension, the candian govement doesnt know what i am doing down there.
here you omit 45 dollars on a t5 and they recalculate your return with interest , like really.
keep up the good work justin.
for everyone else, leave the country, its going to crap anyway, just look around.

#45 TRT on 04.04.17 at 8:50 pm

A vote is a vote.

In the future, when over 33% of adults are over 61, expect huge increases in OAS/GIS OR a NEW seniors guaranteed income supplement.

A party with this platform will win. Simple numbers.

That’s why capital gains inclusion rate is destined to rise to 100%. Like that person who stated here a Dollar is a Dollar is a Dollar (Voters won’t care whether that Dollar has already been taxed).

That’s why people don’t care about retirement savings and continue to buy condos. They are riding the wave of foreign money inflows.

#46 RENTS ATE DOUBLING IN VANCOUVER on 04.04.17 at 9:15 pm

DELETED

#47 Some dude on 04.04.17 at 9:16 pm

Hello,
After years of paying gutwrenching 60k student debt, i managed to begin saving and would like to make a first step towards TFSA portfolio with 3K

I read Garths blog daily w/o exception and isolated couple posts with balanced portfolio recommendations, but still not sure which would be best etfs to buy(blackrock would be one?)

I’m not an investor and would like to ask peeps if anyone could advise on decent Garthfolio sample.

Would buying separate stocks(like 1k FB, 1k Apple, 500 Intel and 500AMD) be bad idea?

Many thanks.

#48 not 1st on 04.04.17 at 9:18 pm

Garth, nobody 70 who has never been in the market before is going to sell and invest it.

Why not instead counsel people to take HELOC and buy covered calls. Way better strategy, interest deducted, stay in house, house creates and income for you. You actually can buy an income.

#49 Dobermanduke on 04.04.17 at 9:20 pm

Financial illiteracy is the direct result of our education system. It is absolutely ridiculous that financial education is not drilled into us at school from the age of 7 until you leave highschool. Many of the lessons that Garth has taught us over years are not rocket science. However if your parents live pay check to pay check chances are you won’t learn it home either. Working in conjunction with free post secondary (many countries make it work) I firmly believe these 2 ideas would go a long way to enpower the generations to come to provide a better life for themselves.

#50 Goofoff on 04.04.17 at 9:21 pm

In Toronto we’ve all made a million at least in real estate alone so most of will be fine

#51 Out of the House on 04.04.17 at 9:22 pm

DELETED

#52 Doghouse Dweller on 04.04.17 at 9:31 pm

– paying everyone OAS at age 65 is just nuts.
——————————————————–

1966 to 1986, the contribution rate was 3.6%, By 1997, this had reached combined rates of 6% of pensionable earnings. From 6% of pensionable earnings in 1997 to 9.9% by 2003. They have been raising rates for decades due to Canada’s changing demographics, increased life expectancy of Canadians which they knew was coming.

They have been relentlessly taxing us into the poor house and now we are expected to believe there is no money for the deplorables.

You do not contribute directly to OAS as you do to CPP. It can, and will, be diminished over time. Budget for that. — Garth

#53 TurnerNation on 04.04.17 at 9:32 pm

Let’s open the bidding on Smoking man’s sht long branch bugee. Starting bid 1.1m clean with no conditions.
It’ll flip for 1.3m on land value alone in 2019.

#54 FISH on 04.04.17 at 9:33 pm

I heard a saying along time ago “ There is only one thing you can count on death and taxes or was that taxes and death, so then better look after yourself in the meantime and do try to have some fun

#55 Porsche on 04.04.17 at 9:40 pm

#49 Dobermanduke on 04.04.17 at 9:20 pm
Financial illiteracy is the direct result of our education system.

………………………………………………………………………..

Going back thinking about that and your right. I didn’t take one finance class in 12 years of grade school.

There wasn’t even a finance class offered.

#56 Doghouse Dweller on 04.04.17 at 9:48 pm

Budget for that. — Garth
———————————-
Collect my first cheque next month. Going to spend every cent in USD and hope to live forever.

#57 Free Bird on 04.04.17 at 9:59 pm

#5 Pete from st cesaire
People have to be allowed to make their own bad decisions.
————–
In ideal world and as a general principle I agree. Much harder as an absolute rule when it’s a loved one, especially a parent. I know. I’ve walked in those shoes earlier then expected with both parents within a few yrs of each other (died of a broken heart I think.) It went from signing POA and Exec papers to care very quickly in one and from looking at seniors apartments to hospital care all to soon with the second. My mother in law was not far behind. Different health issues but heart wrenching none the less. There was leeway for freedom of choice in two cases but not the third. And even when a situation allows for a parent to choose (and I’m a big advocate of this as much as possible), there may still be a non agreement among siblings/ extended family. Believe me anyone who has had to face being POA even with a very cognizant/ lucid parent as well as a family that to get an agreement/ support from can be similar to
herding cats…very emotional ones. When a parent gets older and you need to face the facts and road Garth has touched on it can be the start of very uneasy if not stressful family dynamics. Not in all cases but many. I agree with the advice tonight to start early and try to keep lines of communication open and have your parent’s will be as detailed and fair and upfront as possible. Leaving your kids to figure it out after your gone or no longer lucid is also a very unfair burden. Trust me.

#58 Barb on 04.04.17 at 10:04 pm

Was under the impression that with a PoA, you cannot sell your parents’ assets, but only DIRECT their financial situation.

#59 Freedom First on 04.04.17 at 10:05 pm

#8 Afraid

With your thinking you have hit the daily double. Covered both fear and greed.

#60 Jay Smokeweeden on 04.04.17 at 10:07 pm

#53 TurnerNation on 04.04.17 at 9:32 pm
Let’s open the bidding on Smoking man’s sht long branch bugee. Starting bid 1.1m clean with no conditions.
It’ll flip for 1.3m on land value alone in 2019.
…..

I’m so mad at the world right now I’ll put a hex on the market as soon as Smokey banks the windfall.

#61 wallflower on 04.04.17 at 10:09 pm

#16 Sam the Sham on 04.04.17 at 7:06 pm
– – – – –
You do natives a disservice. This is important.

Granny went out.

She wasn’t taken out.

Enormous difference.

What does granny do today?

#62 Free Bird on 04.04.17 at 10:11 pm

#39 andrewski
We have POA in place (thankfully before Mom’s TIA’s) & I am joint account holder on all their financial accounts, except of course their RIF’s & (maxed out) TFSA’s. Huge relief for our family!
——–
I’m sorry to hear about your mom. Im sure it’s hard on your dad to not be with your mom but it sounds like they’re both in a good place albeit not together. My husband and his sibs had the same things in place as yours and yes, it was much easier (still not easy).

#63 wallflower on 04.04.17 at 10:12 pm

#23 S.Bby on 04.04.17 at 7:38 pm
So if you’re old and you have racked up a bunch of debt and then you die, what happens to your debt? (This is a trick question).
– – – – –
Why will divorce rates be plummeting?
This is Not a trick question.
Because people will not want to walk away with half the debt.

#64 JSS on 04.04.17 at 10:12 pm

Today’s article is depressing.

#65 Vampire studies on 04.04.17 at 10:21 pm

40 Linda

“maximum contributions per year are around $2,600 so the payout reflects what was paid in.”

Going forward NOT EVEN CLOSE.

Firstly, the max CPP premium is twice what you quoted because the employer also contributes. Self employed? You pay that chunk too.

Try a calculation. 10% of your income based on current deduction. 5% return (Garth says 7% so we are conservative). 35 years (working life). Then draw
it down at the same 5% over 25 years (life expectancy). Resulting payments? About 2/3 of the maximum pensionable earnings.

Does the current deal sound like a good investment?

#66 Gary Antonet on 04.04.17 at 10:28 pm

Let them eat Alpo.

#67 Jack on 04.04.17 at 10:52 pm

Hi Garth,
I’ve been following your blog since late 2000s while I lived in Vancouver. I’ve now been in Toronto for 7 years. I’ve agreed with you and followed the advice to rent and invest. I’ve watched Vancouver go up and Toronto go up. There were always signs pointing to an inevitable correction. As of now, it’s still not here. Consumer debt were and are high. Price to rent ratios were and are high. Rate increases on the horizon have been in the talks for a while. Bidding wars and drug-den-or-million-dollar-home stories were rampant then and now. So, Garth, what’s *really* different now?
Thanks!
-Waiting for the prices to drop guy

#68 april on 04.04.17 at 10:57 pm

#45 – misleading statement re condos.

#69 Long-Time Lurker on 04.04.17 at 11:12 pm

#47. Some dude.

Re: Garthy portfolio.

Look back in the comments section for March 2017, two or three people took a stab at it. I think they posted in the last half of March. Try the last week, first.

I sent a tip to the CBC’s Fifth Estate about the coming pension crisis. Let’s see if they run with it. The sooner the Three Amigos start on the problem the less of a disaster it’s going to be.

#70 BMC on 04.04.17 at 11:22 pm

There is a price point for everyone, the parents and family could come up with a $4000 down payment on the mobile home in the link below, leaving an approximate $35000 mortgage, which at today`s rates would be about $200 per month plus the 500 per month fee that covers lease, prop tax, water/sewer, and garbage.
$700 per month would be very affordable to a couple on CPP and OAS, if they were willing to move away from the big city

https://www.realtor.ca/Residential/Single-Family/17758586/2189-DUNDAS-ST-E-Unit-101-LONDON-Ontario-N5V1H3

#71 WUL on 04.04.17 at 11:38 pm

Garth:

Thanks for expounding on this Boomer’s financial situation and that of my kids.

Anyhoo, and on a cheerier note, a Printemps splendide arrives. Snow is gone in Fort Mac, a bump in the RE markets in YEG and YYC and very real prospects for a Battle of ON and Battle of AB in the chase for Le Coupe.

Yours,

WUL

#72 Welcome to Slurrey on 04.04.17 at 11:49 pm

Housing market still awful in the lower mainland. I was watching property for a while back in 2013, lots that i was looking at in slurrey going for 700,000 (larger lots) , i thought no way this is slurrey, thats too pricey this has to be the peak. Those same size lots now 1.6 , will we even go back to 2013 prices?

#73 will on 04.04.17 at 11:54 pm

Really good post today Garth. Most of of your stuff is about the Bank of Mom, but this opposite picture is really getting close to the bone for a lot of Canadians, if they are even aware of it. More posts like this please.

#74 Ret on 04.04.17 at 11:59 pm

What do 60-65 year old retirees need for RE who don’t want to be condoized?

IMHO, Raised bungalow, 1200sf with walk in at grade, 40×100 foot lot, 1 car garage, all brick, 2 bed, 1 bath with walk in shower (no tub), finished basement bed and bath to rent or for the kids to visit and family room. One car garage that actually fits a standard sized car or minivan.

So who builds this within 80 km of the GTA?

Nobody.

#75 Free Bird on 04.05.17 at 12:02 am

#58 Barb
Was under the impression that with a PoA, you cannot sell your parents’ assets, but only DIRECT their financial situation
———–
If person is unable to make decisions for and or act to authorize (i.e sign) themselves for various reasons on issues related to their personal care, finances etc. the person(s) acting as POA(s) to carry out these decisions and or sign on their behalf. This is why I learned early to be VERY careful when choosing a POA(s) and posdibly a back up in the rare case both you and your POA become unable to act at same time (e.g. car accident.) I’m not a lawyer just experience as a POA/executor twice and my husband’s friend was a lawyer. But they can be complicated. It’s really worth doing your reasearch and talking to a lawyer especially if kids or a business are involved. Hope this helps.

#76 Stock picker on 04.05.17 at 12:05 am

Guaranteed that under a second Trudeau Libtards regime all savings will be confiscated. The TFSA will vanish…RRSPs will be absorbed into a “it’s good fo every body” CPP type enhanced formula where government employees would be exempt and civil service pensions will be the equivelant of the Greek scheme that brought that country to its knees. Cuban communism lite. Capital gains will be taken at 100% and house profits will be similarly taxed even though they were paid for with after tax dollars. In a Trudeau fantasy every one will have the tax collector knocking at th e door doing ‘lifestyle audits’. People will go back to hiding the silver under the floo r like in the 30’s. You’re living in the age where a communist leaning kleptocracy is growing like malignant cancers….you see it….but fail to act…..you’re stupid….deserving what you get.

Oh….I was in Malaysia yesterday and this site is one that’s been banned by the censor…..be proud. There’s something about your advice that makes the Islamic thought police very afraid.

#77 Free Bird on 04.05.17 at 12:07 am

Looks like my comment posted twice by mistake. First submit said web server error so I tried again.

#78 GLOBALIZATION on 04.05.17 at 12:13 am

DELETED

#79 learningfromyou on 04.05.17 at 12:14 am

Thank Garth for your post.

I will add this off topic comment on this blog because I have noticed in the Garth actions a real will to help others, using a lot of his time when he could be with his family and/or pets, also there is a bunch of nice people here too.

I just found in the CNN website a picture of a father holding a little baby on his hands who was killed by chemical weapons, for those who do not have a baby I understand that you could not be so touched for the image, on the other hand for others like me with a little angel depending on you I just imagine the pain of that father having the death of innocence on his hands, it’s unbearable.

In this blog we read about real estate, investments, and sometimes I ask myself what could I do to improve the human race, to avoid these things for happening, it’s something that money does not solve, on the contrary is because money and power that these things happen.

Please forgive me for that, it was too sad to even add the image’s link in my post here, I just want the ugly picture to disappear.

Keep investing, keep growing in your life but in your way please put the some of the result of your intelligence to the service of those that will never understand the financial terms that are managed on these posts.

#80 Fortune500 on 04.05.17 at 12:52 am

#34 joblo Exactly. Geographical arbitrage is one of the few relatively new tools in the Millennial toolkit.

Taking advantage of our ability to move to different countries for jobs and other benefits may be the only way to play the hand we have been dealt. Waiting in the frozen north for the economy to return to pre-2000s again and housing prices to revert to mean may not be a winning strategy.

I even have friends who have moved aging family members to nursing/care homes in the countries where they are living where the care is the same or better and at a much much lower price. Think outside of the box here under 40s.

#81 Future Expatriate on 04.05.17 at 12:54 am

Ah, so much fun talking 25 years down the line when Der Trümpenführer is getting ready to nuke NK and start WWIII with China, and is JUST the whackadoodle jackass enough to do it and no adults anywhere in the room or as far as the eye can see. Not a good time to be betting on Wall Street Babylon. No, and gold ain’t it either…. ever see what a nuke blast does to gold?

At least some cash will be spread around when it’s all over. In the end it’s all paper blowing in the wind.

#82 Dan.t on 04.05.17 at 1:08 am

Canada in 5 years will be a different place. All those who have binged on debt (which is pretty much everyone under 40) will not be so smug.

There will be a shift from real estate horniness to other assets. Watch as real estate does what it did in in 1980’s. We are nearing a peak in the cycle., expect it to roll over soon, stay sticky for 3-4-5 years and then do zip for 15-20 years. Based on how much debt is now involved, I imagine lots of price drops and tears.

Those banking on RE appreciation that happened the last 10 years as the brainwashed herd rushed in to FOMO buy will be disappointed. Enjoy “equity” now for another year …it’s not different this time.

Debt is now the equivalent of saving for younger generation, as long as you buy as much real estate as possible- financial planning 101.

#83 Meteorman on 04.05.17 at 1:12 am

Buy a house and pay it off. Best long term financial advice anybody can get. Then your rent can’t go up 100% in one year. Anyone that gives differing advice is stupid. In some cases, houses in TO have gone up 400% in the last 8 years. Of course one must also save for retirement, but house first. Enough said.

#84 NV Landlord on 04.05.17 at 2:16 am

Years ago when my husband was a child, his grandfather had to live with his family for two months of every year. The grandfather actually had to share my husband’s childhood bed! The other months grandfather lived with his other 5 adult children’s families. This was one way to look after elders in the past. This experience has helped motivate us, now great grandparents, to be very careful to be independent and to have the right papers in place…
Thanks Garth, your work is so valuable…

#85 slick on 04.05.17 at 2:48 am

the main reason that financial literacy is not taught in schools, is because teachers are terrible investors.
they look at their pension plan and then move on. The pension is safe, and they don’t have to worry abooout retirement. They are lucky that the pension plan hires excellent managers. They do not grasp the concept that people have to look after their own retirement funds.
My daughter works in the health system. same mentality. ‘Dad, I’m in the pension plan.’ We are having a long talk at Easter dinner.
My son has a labourer job, makes good wage. I have convinced him to invest, and I look after his portfolio. TFSA and RSP full, with extra in margin account. He has no interest in learning about stocks, etc. I hope some day he thanks me. I sure appreciate my fathers tutelage.

#86 jane24 on 04.05.17 at 2:50 am

Your opening situation is an easy one to fix Garth. Get the grandparents to do the daycare and then pay them to do it. Case closed.

Overall though we need to move to the system employed all over the rest of the world. Live with your parents and elderly family. Why does every couple in our WASP culture need their own expensive house to pay off. Use a family pot instead for everyone’s living expenses. Works Italy and India.

#87 Nothing New, Sad on 04.05.17 at 3:12 am

2013 Income Distribution by Age, StatCan, 65 yrs and older (5.29 million souls):

50% w/income > $25,000, 2.67 million people
34.5% w/income > $35,000, 1.8 million people
19% w/income > $50,000, 1 million people
7.5% w/income > $75,000, 400,790 people

and for the 1% curious:

1% w/income > $200,000, 51,350 of them

Considering CPP + OAS is about $20,000/year or so, you have 50% of retired Canadians living on that alone.

2010 StatCan Private Retirement Income for 65 yrs and older, 59% of people receiving retirement income get:

$11,688/yr median, 2.7 million people

Which means even private pension income on top of CPP + OAS = about $30k/yr.

Sad, true, nothing new.

Why I marvel when I read about the wealthy retirees that post/brag regularly on this Blog – seems Garth you have cornered the market on the few that there are, statistically speaking.

#88 Nick on 04.05.17 at 5:39 am

Hey Garth,

Any suggestions on planning for siblings that are saving and investing zilch and will very likely need some kind of financial help when retirement age hits?

The parents are doing fine and I’ve done most of the things you mentioned with PoA coming next.

Take care,

Nick

#89 DoomandGloomer on 04.05.17 at 6:40 am

#82 Meteorman

“Buy a house and pay it off. Best long term financial advice….”
——————————————————————–
How is the average millennial supposed to “pay off ” a million dollar mortgage with a $50K gross income (if they’re lucky), and still be able to live?

What a dick.

#90 DoomandGloomer on 04.05.17 at 6:44 am

#87 Nick

“Any suggestions on planning for siblings that are saving and investing zilch and will very likely need some kind of financial help when retirement age hits?”
——————————————————————–
Yes.

Change your phone number. Move. Leave no forwarding address.

Problem solved.

#91 Contrarian Coyote on 04.05.17 at 6:57 am

#85 jane24 on 04.05.17 at 2:50 am
Your opening situation is an easy one to fix Garth. Get the grandparents to do the daycare and then pay them to do it. Case closed.

Overall though we need to move to the system employed all over the rest of the world. Live with your parents and elderly family. Why does every couple in our WASP culture need their own expensive house to pay off. Use a family pot instead for everyone’s living expenses. Works Italy and India.

===

That’s the way it was up until recently in the ROK. Children would live with their parents until the children were married which typically is in their late 20s early 30s. Parents would go all in and invest in their kids’ education, wedding, and condo down payment. However, there was the expectation that the kids would look after ma & pa when pa was pushed out of the company at 55 because his pension wasn’t kicking in for another decade. Older parents/grandparents don’t live with the adult children much anymore, but it’s pretty much become a tradition that grandma & grandpa get an envelop of cash at least once a month ‘to help’ with expenses. My FIL & MIL do this regularly for MIL’s ma out in the countryside. Korean culture is hard living for the elderly that don’t have some gold-plated pension scheme.

#92 NoName on 04.05.17 at 7:31 am

https://innisfil.ca/mygovernment/planningforourfuture/BringingTransittoInnisfil

#93 Hendrik on 04.05.17 at 7:45 am

Life can be divided into three parts, childhood, adulthood and old age. Usually people pay for their own adulthood and old age and for their children’s childhood. So they pay for three parts. My parents wasted their money, so they want me to pay for their old age, so they only want to pay for two parts and I now have to pay for four parts. That is basically double. I have to pay for my own adulthood, my kids childhood, my own old age and my parents old age. Unfair.

#94 FLHTK aka OMERS on 04.05.17 at 7:54 am

#84 Slick-“My son has a labourer job, makes good wage. I have convinced him to invest, and I look after his portfolio. TFSA and RSP full, with extra in margin account. He has no interest in learning about stocks, etc. I hope some day he thanks me. ”

Wow you are too nice of a Dad, If he has no interest in his financial future, that would be pretty disturbing to see and hear! As a dad to be I can only hope my wife and I can teach our child about money and investing at an early age.

#95 Danny on 04.05.17 at 8:04 am

Hey Garth are you still obligated to help the parents lack of income in retirement when they lived beyond their means for 50 years, spending every dime of a six figure income on non stop house renovations, lavish vacations, restaurants, new cars every 4 years, keeping up with the Jones’s and were completely negligent about planning for their future so now they are broke in their 70’s?

#96 crowdedelevatorfartz on 04.05.17 at 8:11 am

@#94 Danny

They got sucked in to the materialistic world like millions of other brainwashed parents.
Stupid and lazy about finances …but there it is.
Dont leave out the part where they raised a child for 20 something years named Danny.
You should move to the North West Teritories.
I hear you can still put your elderly parents outside the igloo in the snow when they are no longer of use.

#97 Leo Trollstoy on 04.05.17 at 8:42 am

US continues BOOOOMING!

http://www.cnbc.com/id/104384124

#98 Hendrik on 04.05.17 at 8:47 am

@#95

We are a pay-it-forward society, not a pay-it-back society. I care for my kids free of charge, because my parents took care of me free of charge. I don’t owe anything to my parents, just like I don’t expect anything back from my kids.

#99 NoName on 04.05.17 at 9:24 am

Interesting

http://www.express.co.uk/life-style/life/787736/antibiotics-superbug-bacteria-mrsa-maple-syrup

#100 Victor V on 04.05.17 at 9:31 am

#47 Some dude on 04.04.17 at 9:16 pm

Hello,

After years of paying gutwrenching 60k student debt, i managed to begin saving and would like to make a first step towards TFSA portfolio with 3K

I read Garths blog daily w/o exception and isolated couple posts with balanced portfolio recommendations, but still not sure which would be best etfs to buy(blackrock would be one?)

I’m not an investor and would like to ask peeps if anyone could advise on decent Garthfolio sample.

Would buying separate stocks(like 1k FB, 1k Apple, 500 Intel and 500AMD) be bad idea?

Many thanks.

======

Don’t pick individual stocks. With $3K to start, just put it all into XLK or VGT. Both those ETFs hold the major tech co’s.

#101 Paul on 04.05.17 at 9:41 am

#94 Danny on 04.05.17 at 8:04 am

Hey Garth are you still obligated to help the parents lack of income in retirement when they lived beyond their means for 50 years, spending every dime of a six figure income on non stop house renovations, lavish vacations, restaurants, new cars every 4 years, keeping up with the Jones’s and were completely negligent about planning for their future so now they are broke in their 70’s?
—————————————————————–
If you can, Yes

#102 Yanniel on 04.05.17 at 9:44 am

“rent is cheaper” – Garth

Wanna see some numbers of my own? Read here:
http://www.yanniel.info/2017/04/renting-vs-owning-a-condo-in-Toronto-Canada.html

#103 Penny Henny on 04.05.17 at 10:00 am

In the City of Toronto, however, the average detached home price fell by 0.75 per cent in March compared with February, averaging $1,561,780 compared with $1,573,622 a month earlier.

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Just wait and see there will be some fear monger out there that will say that prices are falling.

http://www.theglobeandmail.com/real-estate/the-market/toronto-area-home-prices-hit-record-ahead-of-provincial-budget/article34598268/

#104 Penny Henny on 04.05.17 at 10:06 am

102 Yanniel on 04.05.17 at 9:44 am
“rent is cheaper” – Garth

Wanna see some numbers of my own? Read here:
http://www.yanniel.info/2017/04/renting-vs-owning-a-condo-in-Toronto-Canada.html

??????

Hey Yanniel, just a FYI but the property taxes on the unit in your example should be about $2,000 per year

#105 Vit on 04.05.17 at 10:07 am

Re #1 Why would you wast so much space for a meaningless information . Who cares if number of sells is down . Prices are still creeping up .

#106 LH on 04.05.17 at 10:24 am

I’m 32
And I can retire tomorrow, let alone 40
But work is fun, so I plan on plugging away till 110

#107 jumpknotz on 04.05.17 at 10:32 am

#16 Sam the Sham on 04.04.17 at 7:06 pm

What to do with the old folks? Maybe we will, in the future, adopt the wisdom of the aboriginals. Although it’s no longer politically correct to mention it, it was quite common in aboriginal societies to take granny out into the woods and leave her when times got tough and there was too many mouths to feed.”

This was tradition in Japan as well…..google “Aokigahara” the suicide forest. Of course, Garth would be furious if the Trudeau crew established such a reserve forest near Belfountain……

#108 luc on 04.05.17 at 10:35 am

Just thinking ;-)

What if the government invested their money into a similar balanced and diversified portfolio like you give your clients, could it help solve the debt and deficit of Canada a little bit?

#109 joblo on 04.05.17 at 10:48 am

Crossborder, Fortune 500 and anyone interested.
I posted this before, for those that missed it. This may give some ideas of living in the BIG world outside of Kanada.

https://www.theearthawaits.com

#110 Game Over on 04.05.17 at 10:54 am

We held on long enough, holding out and hoping for sanity to hit the GTA, but it’s time to throw the towel in. Its over for Toronto if you ain’t a real estate zillionaire.

Wife and I are considering packing it in and moving to La Belle Province. It may be “ici on parle francais”, but at least we can afford to live and take french classes.

Au Revoir..

#111 For those about to flop... on 04.05.17 at 10:59 am

Pink Pollen falling Richmond.

These guys got carried away in the euphoria of last Spring and sign on the dotted line for 2.49m on a 25 year old house and are now scrambling to get their money back.

A year ago real estate was soaring just like in the GTA.

Now,not so much…

M42BC

5711 Musgrave Crescent, Richmond

Jan 5:$2,788,000
Apr 4: $2,600,000
Change: – 188000.00 -7%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1WEY2TQ==

#112 Bobby13 on 04.05.17 at 11:05 am

Good article makes sense. When the boomers all start pulling out their pensions here and across the borders who will fill the void?

#113 Bark on 04.05.17 at 11:19 am

Take the kid(s) out of daycare and have the grandparents watch them. It’s better for the kids’ well being, better for the grand parents’ well being, and better for your wallet. Use the money saved to help them in turn. This could be a win-win-win situation for you.

#114 La Belle Province on 04.05.17 at 11:47 am

#110 Game Over

Last year I did exactly that.
Life is good here, I earn almost the same as I did in Toronto and housing is less than half the price.

No brainer.

#115 TRT on 04.05.17 at 12:06 pm

One year ago, I told you guys that prices would shoot up based on massive increases to the temp immigration programs (foreign students & 10 yr visas) coupled with the fact that foreign money continues to flow into RE.

The market knows what is happening.

Yet certain segments continue to obfuscate the truth. Why?

33% increase leaves financial market returns in the dust. And no, no one is going to pay capital gains taxes on that.

Expect another 30% increase before this plateaus and spreads to other areas.

It would take a crash to return to 2016 prices…not gonna happen nor will gov allow it. Still time to leverage and get in on the action. If it all crashes, let the gov eat cake for they are the ones allowing this madness, aided and abetted by ….

#116 Tudval on 04.05.17 at 12:10 pm

Price appreciation 1979-1989 about twice that of 2006-2016… Where’s the bubble?

Avg price in Toronto
1979 – $70,830
1989 – $273,698

2006 – $351,941
2016 – $729,910

Seems like a correction needs to take place… upwards. 2017 should be ~$1.4 mil to talk about a similarly sized bubble, but will probably only come in at $0.9 mil.

#117 Stevie on 04.05.17 at 12:13 pm

Another bang on VRE update! Your posts always bring my spirits up. Love delusional people, their little worlds are so much more interesting than our boring reality.

#118 jess on 04.05.17 at 12:17 pm

Marketing magazines, seminars, real estate courses, educated and empowered this young couple. In 2012 they were featured in a marketing mag. and awarded “investor of the year” in 2012!

http://www.yourinvestmentpropertymag.com.au/news/profile-investors-of-the-year-2012–kate-and-matt-moloney-174115.aspx

which didn’t end well bankruptcy
https://www.domain.com.au/news/what-to-do-when-property-bubbles-burst-35-million-in-the-red-20160223-gn086p/
http://www.heraldsun.com.au/business/barefoot-investor/investors-of-the-year-couple-go-from-business-to-bust/news-story/22084fdb7103d5a403acb310da11b49c

#119 jess on 04.05.17 at 12:20 pm

What would an independent Scotland due regarding these stories the Scottish Herald has revealed….

Opaque SLPs marketed globally – and specially in the former Soviet Union – as “zero-tax offshore companies”. Last week, The Herald revealed more than 130 SLPs had been used as part of the £16bn Russian laundromat, the biggest and most elaborate money-laundering scheme in world history.
====================================
Experts had been asked to find out what had happened to a billion dollars that had disappeared from three of the country’s banks. They found the money, in theory at least. It was owed to an obscure Scottish legal entity registered at a former local authority home in Pilton, Edinburgh. The BBC, which also had the story, called this the “billion-dollar ex-council flat”.

The entity was a Scottish limited partnership, a unique kind of business whose owners can be anonymous, pay no taxes and file no accounts but can, just like a real company, own assets. It was one of a score – as well as other British and foreign companies – used to carry out what was essentially one of the world’s biggest bank heists.
Analysis: Transparency dwarfed by the grey economy of fronts for gangsterism
http://www.heraldscotland.com/news/15203417.Analysis__Transparency_dwarfed_by_the_grey_economy_of_fronts_for_gangsterism/
http://www.heraldscotland.com/business/13414235.The_Moldova_Connection/

Last year 300 SLPs were set up for transparent financial purposes, such as the Formula One acquisition. However, there were 4884 anonymous ones.So the controversial business Mr Clancy and the Law Society is trying to defend is simply dwarfed by a massive grey economy of opaque structures, scores of which have been exposed as fronts global gangsterism by this newspaper.

#120 Tudval on 04.05.17 at 12:21 pm

Also most interesting fact: if you avoided buying at the very top (1989) and could get in just 1 year before the peak, the worst price depreciation that you saw during the following years was just a little more than 10%.

1988: $229,635
1996: $198,150

And that was just for the first time buyers. Obviously those who sold and bought in the same year (even 1989), only saw 10% drop in their newly deployed capital, not on their entire purchase.

#121 Tudval on 04.05.17 at 12:34 pm

And of course, the reverse is valid for the sellers: if you missed the top by 1 year and ‘cashed in’ before the peak, you only got about 10% more than at the bottom, 7 years later. Would it be worth waiting 7-8 years to buy back in 10% cheaper – provided you’d even be able to pick the bottom – considering the transaction costs alone are higher than that? After accounting for the rent paid, what kind of return should you get in the stock market to make up for the lost time. What about 8 years that you missed making improvements to your property, your quality of life and your equity? I’d think most ‘normal’ people still take pleasure in building their own castle.

#122 dm in c on 04.05.17 at 12:43 pm

#94 Danny on 04.05.17 at 8:04 am

Hey Garth are you still obligated to help the parents lack of income in retirement when they lived beyond their means for 50 years, spending every dime of a six figure income on non stop house renovations, lavish vacations, restaurants, new cars every 4 years, keeping up with the Jones’s and were completely negligent about planning for their future so now they are broke in their 70’s?
—————————————————————–
If you can, Yes

*****

Nope. Am paying for kids’ education and saving for my own old age. Reap what you sow.

My dad wants to sell their place and move into a senior’s building, but my mom wants to be able to smoke when and where she wants, so they cannot sell. Plus the smoking ensures they’ll never live with us.

#123 LP on 04.05.17 at 12:48 pm

#84 slick on 04.05.17 at 2:48 am
the main reason that financial literacy is not taught in schools, is because teachers are terrible investors.
**************************************
Wrong…the main reason is that there is no time in their day. In my daughter’s grade 5 class of 29 students, she has 9 who are not at grade level, including two who read below level 3 and one below level 1. One student arrived in September having stepped off the plane from Korea the day previous speaking no English at all.

She has one gifted student, a boy, who she must provide with enrichment (almost as difficult given class size as providing for the kids with deficits).

Then add in the sex education, health class, civics, and the myriad of things parents are too lazy, too busy, too, too, too something else to teach at home.

Sorry for the rant; but people who expect teachers to be the be all and end all of everything to be learned just make my blood boil.

#124 kothar on 04.05.17 at 12:52 pm

What’s wrong with spreading your money around, pay down mortgage, save into rrsp tfsa and spending money? I have always done this and now am soon to retire mortgage, but at same time have accumulated a nest egg, and have spent money on travel and living. I have rented for many years and do not like living in apartment/condo buildings. At least with my house, it will be mine, and I have parking inside a garage instead of outside or in some big underground parking garage.

#125 LP on 04.05.17 at 12:55 pm

And, by the way, she has no in-class teaching assistant. However, the young Korean child does leave class twice a week for help with his English. The rest of the time it falls to my teacher-daughter to provide the basics.

At the end of the day, twice a week she volunteers with the school hockey team organizing teams and submitting grant applications. And that team is organized and run by the school custodian who some of you may have seen celebrated on CBC a few weeks back.

When her own kids have been safely tucked away for the night having completed their [supervised by Mom] homework, she gets to the regular DAILY evening work planning the next day’s classes.

But, of course, otherwise career teaching is a piece of cake!

#126 Victor V on 04.05.17 at 12:56 pm

More measures needed if Toronto housing market fails to cool in spring, Scotiabank says

http://business.financialpost.com/personal-finance/mortgages-real-estate/more-measures-needed-if-toronto-housing-market-fails-to-cool-in-spring-scotiabank-says

#127 Victor V on 04.05.17 at 1:11 pm

Toronto mayor puts real estate industry on notice as prices surge most since 1989

http://www.bnn.ca/toronto-mayor-puts-real-estate-industry-on-notice-as-prices-surge-most-since-1989-1.715711

“It’s deeply concerning to me because not only are people losing hope of having a home – a rental or an ownership home, but they’re losing even just the mathematical ability to contemplate what they hope for,” Tory said. “The dream of home ownership has to be kept alive.”

“Demand is nearly insatiable,” BMO Capital Markets Chief Economist Doug Porter told BNN via email. “Policymakers simply have to take steps to cool demand, with some haste. … We are now approaching the rarified air Vancouver was in a year ago.”

“I suspect many folks are being offered prices they never thought they would get in their wildest dreams and are cashing in,” Porter added. “Some may be influenced by bubble talk, but I believe most people respond to their own circumstances and the incentives that are staring them in the face.”

#128 Realitybytes on 04.05.17 at 1:15 pm

Seriously Garth, stop scaring people and prepping them to an eventual loss of core social safety net features.

Pension plan administrators managing massive amounts of capital like at OTPP and CPPIB are incredibly successful.

You tell us (individual plebs) that we can easily get 7% on a balanced portfolio, then scoff at the possibility people managing billions can get a consistent 3.4%

What are you smoking?

Less than you. That comment was from the CD Howe Institute. Wipe the smoke from your eyes and comprehend the words you read — Garth

#129 Dave W on 04.05.17 at 1:24 pm

Any know why this would happen, on a friends st, came on the market about 3 or so weeks ago for 750000 I believe, accepting offers two weeks later, now on the market with a price increase?

https://www.realtor.ca/Residential/Single-Family/17942412/1585-CORAM-Crescent-Mississauga-Ontario-L4X1L1-Dixie

#130 Tony on 04.05.17 at 1:32 pm

Re: #116 Tudval on 04.05.17 at 12:10 pm

In Edmonton resale condos, resale apartments, resale townhouses and resale rowhouses are 40 to 50 percent lower in price over the last 10 years from 2007 to 2017.

#131 Don on 04.05.17 at 1:38 pm

I am thinking about cashing my mortgage free north york house, which worth about 4.5 million in today’s market and can sell it in blink with no condition, this is the single investment I have for 2 decades. Then buy a decent house for half million in London, ON, so with 4 million tax free money, I think I’m going to be very happy.

#132 For those about to flop... on 04.05.17 at 1:39 pm

Pretty dramatic drop off in March for sold dollar volume for detached houses in Vancouver…

M42BC

https://imgur.com/a/JRr7T

#133 slippery cricket on 04.05.17 at 2:10 pm

The number of bottom feeders is increasing exponentially, while the top educated innovators not as fast. Together with automation will cause many to suffer and live a lower standard of living.
The problem with having broke seniors is the children were often raised with the same principle and the cycle continues.

#134 X on 04.05.17 at 2:14 pm

Have we reached peak stupidity yet? Some of these buyers will be paying for their homes for the rest of their lives. Too bad they don’t realized it….

#135 jess on 04.05.17 at 2:17 pm

#123 LP on 04.05.17 at 12:48 pm

Educational training grounds?
2017 Winners
Here are 2017 winners of the Canada’s Top Employers for Young People competition. Click an employer name to read our editors’ full Reasons for Selection:
For example, CIBC ,TD, Accenture, were among the many selected as one of Canada’s Top Employers for Young People (2017)
http://www.canadastop100.com/young_people/

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

See who made the list 2008 e.g. certain honorees seem to have been caught up in scandals in the years ahead

http://worldsmostethicalcompanies.ethisphere.com/honorees/

Dutch Rabobank, HSBC Bank USA Inc.,USA Standard charter caterpillar to name a few

#136 Mattl on 04.05.17 at 2:31 pm

Yanniel – what does the math look like over a longer period of time? Say renting for 10/20/30/40/50 years? I get that renting is better for folks that have unstable jobs, are transient, etc but no way the math is favourable to Canadians that have stable jobs and stay in or around the same cities or towns. In 9 years I won’t ever make another rent payment in my life, so 35-50 years without paying 3-6k per month.

This isn’t to argue that now is a good time to jump into the market but only focusing on the short term for rent vs own is foolish. Some of us think long term and realize part of financial independence involves not having to pay 30-60k a year in rent.

#137 Peter Engy on 04.05.17 at 2:33 pm

I don’t get why politicians hesitate to enact laws similar to the other money heavens. If you are a country with a good passport acceptance, stable and clean, you need to uo your game. There are demands for these places for secondary passports. An island in the schengan zone is charging 1 million non flrefundable + 500 000 euro in real estate asset.

Some if the real estate restrictions I’ve heard about in 3rd world countries include:

-Foreigners can only buy new build condos.
-51% ownership must be local.

Yet despite these restrictions and many foreigners getting their ass handed to them after the local partner flees with the asset, they still experienced a huge real estate spike. Imagine my surprise when “middle of nowhere” Bali real estate cost the same as Vancouver. So, if our politicians don’t act soon, expect price to completely run amok.

These are places where it is almost impossible to be a citizen if you were not born there.

#138 it burns on 04.05.17 at 2:34 pm

These guys are bleeding. How much will they lose ……

Bought for 2.2m in Jan 2016.

5746 Lancaster Street, Vancouver

2017 Jan 9:$2,488,800
2017 Apr 4: $2,098,000
Change – 390800.00 -16%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMzlLOQ==

#139 Capt. Serious on 04.05.17 at 2:57 pm

This is your peak tulip bulb mania point Toronto. Don’t mess it up if you are planning to sell the house as part of your financial plan. Ask yourself when will you ever again have hundreds of people fawning over your nondescript suburban home?

#140 yorkville renter on 04.05.17 at 3:03 pm

#136 – Mattl – In 9 years I won’t ever make another rent payment in my life, so 35-50 years without paying 3-6k per month.

What about Property Tax? Garbage/Water/Hydro bills? Home Repairs? Roofs need replacement every 20 years or so – how much does a new Roof cost (hint: $10K+)

Who’s being short-sighted?

#141 For those about to flop... on 04.05.17 at 3:22 pm

It burns at 2:34 pm
These guys are bleeding. How much will they lose ……

Bought for 2.2m in Jan 2016.

5746 Lancaster Street, Vancouver

2017 Jan 9:$2,488,800
2017 Apr 4: $2,098,000
Change – 390800.00 -16%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMzlLOQ==

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

Just wanted to say thanks for the help.

I hadn’t gotten that far down the list and haven’t been spending as much time looking for Pink Pollen as I am trying to do some medical appointments before going away next week.

Did you see my chart at #132?

Also West Vancouver down almost 40% yoy

It won’t be on the 6 o’clock news…

M42BC

#142 Dan.t on 04.05.17 at 3:22 pm

#88 doomandgloomer that’s exactly the point- 60 year olds giving advice, like they bought houses costing 6-7-8-9x their income and paid it off- different world.

BC ave household income 80 k gross… houses 700+, Ja pay that off with rates set to rise in next years, let me know how much money is left to live on- oh forgot houses go up forever, just sell for a 2 mil tax free gain

#143 Ronaldo on 04.05.17 at 3:30 pm

#131 Don on 04.05.17 at 1:38 pm

I am thinking about cashing my mortgage free north york house, which worth about 4.5 million in today’s market and can sell it in blink with no condition, this is the single investment I have for 2 decades. Then buy a decent house for half million in London, ON, so with 4 million tax free money, I think I’m going to be very happy.
—————————————————————–
Don’t just think about it. Do it.

#144 Ronaldo on 04.05.17 at 3:45 pm

#124 kothar on 04.05.17 at 12:52 pm

What’s wrong with spreading your money around, pay down mortgage, save into rrsp tfsa and spending money? I have always done this and now am soon to retire mortgage, but at same time have accumulated a nest egg, and have spent money on travel and living. I have rented for many years and do not like living in apartment/condo buildings. At least with my house, it will be mine, and I have parking inside a garage instead of outside or in some big underground parking garage.
———————————————————–
Nothing wrong with that and with the house paid for you have the option of remortgaging and investing the proceeds where the interest becomes tax deductible. In the meantime you have the freedom of owning your own home and not faced with the huge increases in rent that many are being faced with nowadays. Good for you.

#145 James MF on 04.05.17 at 3:53 pm

I think it might be the right time to flip your house to a millennial.

#146 Jack Smith on 04.05.17 at 3:56 pm

Nobody is talking about sinking Canada and U.S. bond yields. The 5 year, 10 year and 30 year bonds are now 1.05%, 1.55%, 2.23%.

These were all around 0.25% or quarter percentage point higher just a few weeks ago.

Mortgage rates will be falling soon and don’t be surprised new lows like last year BREXIT hit with 30 year Canada bonds at 1.55%.

#147 Yanniel on 04.05.17 at 3:57 pm

RE: #104 Penny Henny on 04.05.17 at 10:06 am

Thanks Penny Henny. May I ask where did you get that number from?

RE: #136 Mattl on 04.05.17 at 2:31 pm

Mattl, you obviously did not read my article or did not understand it. Everybody pays rent, even owners. It is called “implicit rent” and it does NOT disappear once you have paid off your mortgage. “Implicit rent” is an opportunity cost, and the only way you get rid of it is when houses appreciate faster than other alternative investments (like the S&P 500). Over the long run however, real estate does not outperform US equities.

If my calculations are wrong please point out the issue. Otherwise, show me your math and prove that owning beats renting (I am sure you won’t be able to do that, but you can always try)

#148 Ronaldo on 04.05.17 at 3:57 pm

#123 LP on 04.05.17 at 12:48 pm

#84 slick on 04.05.17 at 2:48 am
the main reason that financial literacy is not taught in schools, is because teachers are terrible investors.
**************************************
Wrong…the main reason is that there is no time in their day. In my daughter’s grade 5 class of 29 students, she has 9 who are not at grade level, including two who read below level 3 and one below level 1. One student arrived in September having stepped off the plane from Korea the day previous speaking no English at all.

She has one gifted student, a boy, who she must provide with enrichment (almost as difficult given class size as providing for the kids with deficits).

Then add in the sex education, health class, civics, and the myriad of things parents are too lazy, too busy, too, too, too something else to teach at home.

Sorry for the rant; but people who expect teachers to be the be all and end all of everything to be learned just make my blood boil.
—————————————————————-

You are absolutely right LP. Our education system is in need of a major overall. Was speaking to a friend recently, a child psychologist, who deals with children with learning disabilities. She gave an example of a child in a grade six class who is at the level of a 3 year old. I responded saying that this sounded ridiculous. Her response was that every child has a right to an education. Yes, but at what cost to the teacher and the other students. These children should be in special needs classes with people trained to deal with them. I can certainly understands the teachers concerns regarding these situations.

#149 Mike in Edm on 04.05.17 at 3:59 pm

I know all too well about the topic today. My dad (well, more so his common law wife and 2 kids) pissed away the little bit of RRSP money savings, his mother’s estate after she passed, etc over the past 15 years. They also mortgaged their house for the 2nd time, so from me thinking after he passes I’d end up with about $100k in assets, he literally has nothing and I think they just refinanced everything (then pissed more away on another new vehicle). After all these years I had absolutely no idea how bad it was. There’ll come a time where he’ll be forced to live in our basement because he literally has nothing. Mind blowing.

#150 traderJim on 04.05.17 at 4:27 pm

hehehe You have to laugh at the BOC worried about raising rates 25 bps in the face of a booming stock market, economy and house prices rising at a rate from here on in of $300,000 a year.

I wonder what the colour of the moon is in Central Banker world?

#151 Karma on 04.05.17 at 4:35 pm

Awesome

https://www.nytimes.com/2017/04/01/business/a-real-estate-boom-powered-by-pot.html

#152 mike from mtl on 04.05.17 at 4:36 pm

#146 Jack Smith on 04.05.17 at 3:56 pm
//////////////////////////////////////////////////

Noted, 5yr has actually been lowering, granted it is slightly higher since trump-bump. Nothing to be weary of to be honest.

Raising rates here are not going to happen this decade, easily. Don’t string your neck out on a massive mortgage… on the flip side there’s nothing (BoC themselves, forex, etc) that even SUGGESTS raising rates here. Bond market seems to think so…

BoC has to do actually nothing these days which is perfect for them. And the next ‘crisis’ they’ll have the perfect excuse to stay at .5 or drop .25.

Garth seems to think 2018 now, but I’d say 2025-2030. But in NO FRIGGIN way are we going to see 10% GICs or 5 year fixed at 4% for example, those days are gone.

#153 jess on 04.05.17 at 4:46 pm

“On Monday, the White House acknowledged a previously undisclosed meeting between Kushner and Sergey Gorkov, chief of Russian government-owned Vnesheconombank. The bank, which handles Russia’s pension funds and deals with development activity for the state, including foreign debts and investments, has been under U.S. sanctions since July 2014, in response to Russia’s intervention in Ukraine..

In early 2015, one of the bank’s New York-based employees, Evgeny Buryakov, was arrested and accused of being an unregistered spy for Russia’s foreign intelligence service, working with two Russian diplomats who were also secretly acting as spies. According to the U.S. government, they collected information about U.S. sanctions against Russia, and American efforts to develop alternative energy resources.

Buryakov pleaded guilty in March 2016 to conspiring to act as an agent of a foreign government, though he never admitted to being an employee of Russia’s foreign intelligence service

https://www.justice.gov/opa/pr/russian-national-pleads-guilty-connection-conspiracy-work-russian-intelligence

====================================
World News | Wed Apr 5, 2017 | 2:20pm EDT
Russian banker convicted in U.S. spy ring deported to Moscow

#154 TurnerNation on 04.05.17 at 4:49 pm

Starring Joe Owe:

http://www.postcity.com/Eat-Shop-Do/Do/April-2017/10th-Annual-Real-Estate-Roundtable-Tackling-the-details/

#155 Penny Henny on 04.05.17 at 5:07 pm

#129 Dave W on 04.05.17 at 1:24 pm
Any know why this would happen, on a friends st, came on the market about 3 or so weeks ago for 750000 I believe, accepting offers two weeks later, now on the market with a price increase?

https://www.realtor.ca/Residential/Single-Family/17942412/1585-CORAM-Crescent-Mississauga-Ontario-L4X1L1-Dixie
//////////////////////////////

Hey Dave,
what happened is not that uncommon.
They had initially priced it for 750 hoping they would generate multiple offers and get around the 825 amount.
Obviously they failed so now they have priced it at a number that they hoped for in the first place.

#156 Penny Henny on 04.05.17 at 5:09 pm

#131 Don on 04.05.17 at 1:38 pm
I am thinking about cashing my mortgage free north york house, which worth about 4.5 million in today’s market and can sell it in blink with no condition, this is the single investment I have for 2 decades. Then buy a decent house for half million in London, ON, so with 4 million tax free money, I think I’m going to be very happy.
///////////////////////

Good for you Don!

#157 Penny Henny on 04.05.17 at 5:16 pm

#147 Yanniel on 04.05.17 at 3:57 pm
RE: #104 Penny Henny on 04.05.17 at 10:06 am

Thanks Penny Henny. May I ask where did you get that number from?
///////////////////////////////

Appraised values are running way behind actual values.
Example my house is currently appraised for about 550k.
Actual value is 1,150k.
Taxes for 2016 were about $3650

#158 jess on 04.05.17 at 5:32 pm

fifth ave.
“landlords were jacking up each new lease with higher and higher rent, and at some point, something had to give.”nytimes
===============
http://www.vacantnewyork.com/

Supply and demand isn’t working. Landlords with large portfolios of property, despite having significant (100+) vacancies, can’t drop prices significantly without having a ripple effect on the rest of their portfolio. They can, however, take the loss from the vacant properties and shelter other income.

https://www.6sqft.com/mapping-manhattans-vacant-storefronts/

#159 A Reply to #146 Jack Smith on 04.05.17 at 6:03 pm

Bonds yields have an upward trend over last year:

Canada
http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/

U.S.
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-LongTerm-Rate-Data-Visualization.aspx

#160 Linda on 04.05.17 at 9:42 pm

#64 Vampire Studies – are you saying you think CPP will pay you 2/3’s of the YMPE if you pay in for 35 years? Or that the grand sum you will receive in CPP pension over 25 years is roughly 2/3’s of the YMPE? Because the last figures I saw for ‘maximum’ annual CPP (taken at age 65 with 39 years of maximum contributions per year) is a princely $13,300 – gross, not net. Which is nowhere near 2/3’s YMPE. Most CPP recipients are getting about $600 per month due to 1) taking it early & 2) not having worked/contributed ‘the max’ for 39 years.

#161 Piet on 04.05.17 at 11:30 pm

@#63 JSS

“Today’s article is depressing.”

Some existentially truthful information may be unsettling, but probably we should be thinking about it.

#162 Piet on 04.05.17 at 11:41 pm

@#94 Danny
“are you still obligated to help the parents lack of income in retirement when they lived beyond their means for 50 years”

No. You’ve already paid the price of having inherited their genes. ;)

#163 Piet on 04.05.17 at 11:52 pm

@#107 Jumpknotz
“Aokigahara” the suicide forest. Of course, Garth would be furious if the Trudeau crew established such a reserve forest near Belfountain……”

Who knows, maybe family members would be willing to splurge on some final ice cream cones before taking the old folks out into the forest.

#164 The real deal on 04.07.17 at 10:14 pm

Yah had to reno my kitchen and buy a new car every three years…plus see all the leaf games….