The switch

“My mother,” Susan told me, “is CRAZY.” How could I not read the rest of the note?

“It isn’t just the young who are rushing to guzzle koolaid,” she explains, “My 82 year old widowed mother has rented a condo for the past 9 years.  Out of the blue the owners told her they wish to sell the condo for a crazy-ass price that made the entire Condo Assoc laugh. It is 14 years old and in all the time my mom has rented there have been no upgrades except a replacement of the living room carpet that is cheap, like the appliances.  There was no formal assessment done.  Mom went into a panic.  She does not want to move.

“So she agreed to her owners’ sale price.   Both realtor and her RBC advisor are thrilled for her and assure her that in the long run she will be spending less money to buy than to rent, condo fees not a problem either.  She has no intention of having anything checked out, no intent to negotiate for fear of a bidding war and her desire to remain in the building. And has begun to think about redecorating and painting.  Sigh.

“I reviewed common sense, buying at the peak, her age !!!!! newly inherited responsibility for repairs etc.  At least she didn’t scream that as usual I was more concerned about her dying to cash in what little money she has because I am so hard up for money, as she usually does.

“Moist millennials?  Goofy seniors?  Thought this would add to your example of how stupid is as stupid does.”

Yup, stupid. Given her life expectancy, buying at the top of the market, the age of the beater condo, the lost income potential of her capital, the condo fees, property taxes, maintenance costs and insurance she now shoulders, this was an irrational, emotional, confused decision. And let’s be frank – Susan had better options than to write a dodgy blog and bitch.

One might be to obtain a power of attorney for the old lady. There comes a time in the lives of many families when the parent-child relationship must flip. Suddenly adult children need to look out for aging parents, ensuring the decisions they make are reasonable, sound, rational and in their own best interests. Spending life savings in your eighties on a dippy condo isn’t one of them.

This is where a power of attorney comes in. It’s a legal document granting someone else (in this instance, Susan) the right to make decisions on property, finances, investments and other matters. In a perfect world, a parent would grant this right to an adult child on the understanding when marbles start to be lost, good decisions can still be made. It’s a common thing in the financial world for POA investment accounts to be set up so kids make the decisions, yet aging parents are the beneficiaries, still legally owning the assets.

A continuing power of attorney lasts for life, and can normally be invoked when a medical or legal professional determines Mom is losing it. That doesn’t only mean dementia or wandering in traffic, but can extend to big money-related decisions that will have long-lasting and deleterious consequences. Like being ripped off by the people who own your rented condo.

Susan, like every person with an 80-year-old parent, should have arranged for a POA in advance. And while granting a power of attorney to someone else to look after you may sound scary and open to abuse, it comes with clout. The POA holder has a fiduciary responsibility to the other party – that means, by law, Mom’s interests must come before those of the guardian. Whether mother likes the decision or not.

Every married couple should exchange POAs. Anyone losing a spouse should seek someone they trust and arrange one. Everybody with an eightysomething parent should get this is place.

After all, your Mom looked after you when you were an idiot. Your turn.

$        $        $

Imagine if last year the number of foreign buyers Hoovering up residential real estate in this country increased by 49% – a record. Now imagine if 10% of the value of all property transactions went to offshore dudes. Not just one in ten deals in a city that foreigners like, but a tenth of all sales everywhere. It would be huge. The comments section of this blog would be positively bloodthirsty.

Well that just happened in the US. Cheesy non-Americans snapped up 284,455 homes last year in places like Florida, Texas and California, which was a 32% increase over the previous level. In total, over $153 billion worth of dirt changed hands. And have you read a single negative story out of the US about foreigners taking over? Do any American states have a 15% foreign buyers’ tax, or a 1%-per-year empty houses levy?

The biggest surge in alien buyers of US houses last year? That came from Canada. Horny little beavers invading from the north snatched up $19 billion worth of properties, most of them in Florida, with suitcases full of cash. The average price of a Canadian-bought home hit $561,000 US – double the level of a year earlier. The median home value in Florida is $207,500. Without a doubt, we’re driving up prices for the locals.

Chew on that.

177 comments ↓

#1 Doug t on 07.19.17 at 6:46 pm

I do not believe there is another species on the planet (or the universe) as dumb as we humans – we are the worse thing to ever happen to this planet

RATM

#2 Mean Gene on 07.19.17 at 6:47 pm

“A springing power of attorney is called that because it “springs” into action if you become incapacitated. Durable power of attorney becomes effective as soon as you sign the document, and continues to be effective if you are incapacitated. Giving someone power of attorney is a big deal.” Duh.

#3 OttawaMike on 07.19.17 at 6:48 pm

Timely.
I’m just invoking a POA at the moment. Getting my relative out of ownership to pay for a retirement home.

#4 AGuyInVancouver on 07.19.17 at 6:48 pm

WRT to Canadians buying in the USA, I wonder how much of that money came from downsizers who sold a house and bought one condo in Canada and another in the USA? certainly the exchange rate hasn’t encouraged such purchases. And if downsizers are responsible, it could just be that Canada’s foreign buyers are fuelling Canadians as foreign buyers!

#5 ole Doberman on 07.19.17 at 6:53 pm

Gartho thats cause there is way more properties down there, less impact from foreign buying

Do you know what % means? — Garth

#6 FOUR FINGERS WATSON on 07.19.17 at 6:58 pm

Canadians buying in the USA cuz they can’t afford to buy at home any more. Median home value in Florida is $207k ? Pfft. Wake me up when it’s a million plus like Vancouver.

#7 WishIWasAMillenial on 07.19.17 at 6:58 pm

Interesting post.

So…did anyone see that post on Bloomberg about the sub-prime loans from auto sales blowing up in the US?

And we thought it was a Canadian problem eh?

#8 WishIWasAMillenial on 07.19.17 at 7:01 pm

Here is the link:

https://www.bloomberg.com/news/articles/2017-07-17/new-u-s-subprime-boom-same-old-sins-auto-defaults-are-soaring

#9 NoName on 07.19.17 at 7:02 pm

“Both realtor and her RBC advisor are thrilled for her and assure her that in the long run she will be spending less money to buy than to rent, condo fees not a problem either.”

—-

Those two should be put in jail.

#10 American in Alberta on 07.19.17 at 7:10 pm

It’s obvious that Canadians have no idea how much a property should actually cost. I bet the estates selling to Canadians are laughing at what they can get out of them.

#11 InvestorsFriend on 07.19.17 at 7:10 pm

So Ageism is allowed on the blog?

“Susan, like every person with an 80-year-old parent, should have arranged for a POA in advance.”

****************************************
I don’t think so, not unless actual dementia is present.

A lot of octogenarians and beyond are more financially capable than their grown children.

Get back to us on your opinion about this when you hit 80.

Having a POA in place does not mean it is invoked. Plus, one must be granted when competent, not when afflicted. Too many have discovered this too late. — Garth

#12 Cloudy on 07.19.17 at 7:12 pm

Good write up but I can see why so many people would be scared about signing a POA. So many people are financially illiterate; I know very few people that I would trust to make financial decisions for me.

When it comes to inheritance issues it’s scary watching how nasty people become. Blood is supposedly thicker than water but I have witnessed and know of countless instances where fairness and rationality are gone instantly. I have seen family bickering over who gets what while the senior who owns the assets is still alive and walking around. Awful stuff.

#13 Smartalox on 07.19.17 at 7:14 pm

“There comes a time in every family where the child-parent relationship must flip – the child must start to look after the parent”

It happened in my family when I was 12. No PoA though, so there were several years of power struggles, and last-minute pleas for bailout money (them, to me) before I finally had to set and enforce barriers.

I deeply regret that it had to come to that, but it was what I needed to survive.

30 years later, a PoA is still required, but alas, sorely lacking.

One caveat: powers of attorney are administered under provincial law, so both parties must reside in the same province. Pick your trustees accordingly.

#14 After Communism on 07.19.17 at 7:17 pm

First the family military duty thing, and now Florida real estate looks more compelling than a medical career. Khadr should reconsider his plans for medical school for a second time in his life.

#15 NYC on 07.19.17 at 7:17 pm

Did not expect that… Vancouver now more urban than NYC.

https://homefreesociology.wordpress.com/2017/07/19/vancouvers-transformation-from-phoenix-to-montreal-in-under-60/

#16 Vit on 07.19.17 at 7:18 pm

Fake news – thats how I can call RE news this days .

House not to far from me 3 weeks on a market
1086 Willowbank Tr, Mississauga listed $1,349,900
SOLD for $1.30M, July 2017
Thats 3 % below asking price in a Peel area . 6 years ago I bought similar house for 570 K . So were all this 10-20 % price drop .
http://www.mongohouse.com/soldrecords/596ebe6f5c72302fec245af4

#17 nick on 07.19.17 at 7:22 pm

Sad. How did the bank think it was a good idea to give someone that old all that debt? This doesnt even make sense.

This shit should go straight to the news.

#18 FreeBird on 07.19.17 at 7:29 pm

I was POA for both parents. Harder then you think when/ if it’s inacted. Im POA for my husband and him for me, with back up. Choose carefully.

#19 Howard on 07.19.17 at 7:29 pm

So…what happened? Did Susan manage to reverse the deal? Or stop it (not clear if her mother had yet signed)?

If this isn’t a case of Alzheimer’s onset, then this elderly woman is mind-bogglingly stupid and not to mention selfish.

But the realtor and the RBC bankster – do they have no shame? no conscience?

#20 acdel on 07.19.17 at 7:29 pm

What is sickening about this is that her realtor and the RBC so called adviser took advantage of this. For Susan I have no words???????

This situation has lost every last bit of ethical humanity that there is, I hope they rot in hell!

#21 Andrew Woburn on 07.19.17 at 7:30 pm

I know it’s sad about the TO housing crash but let’s deal with the really important.

Have we reached peak Hog?

“Harley-Davidson cuts shipments forecast; shares skid”

http://www.reuters.com/article/us-harley-davidson-results-idUSKBN1A3126

#22 Insert Eye Roll here on 07.19.17 at 7:31 pm

A friend’s Mom, who is in her mid- eighties decided to sell her home in Markham and move into a seniors life- lease property. I did point try to point out to her that land lease was basically front end loaded rent, but she said that it was buying, and she would never waste her money on rent. At least was a long established land-lease property that was well maintained and was relatively inexpensive with affordable monthly fees ( unlike the five year old luxury one nearby which, so far, has levied its owner some $40K in extra costs, raised monthly fees to over $1100 per month and which panicked owners are trying to foist on to someone else for in the mid $ 500K). But I digress.

Mom listed just as the market cooled for $1.2M. Crickets. Mom panicked – her neighbours had sold for $1.3M only weeks before. Agent persuaded her to lower the price, which she did, to $1M. Two offers. One low ball, one for $50 under ask, no conditions, with quick close, which she accepted. Hope it closes. BTW, the neighbours house didn’t close and is back on the market, etc.

#23 Andrew Woburn on 07.19.17 at 7:34 pm

US politics in a nutshell

https://www.youtube.com/watch?v=9Wt9rpYmZK4

#24 Steph on 07.19.17 at 7:38 pm

So let me recap: our housing market is going up because of foreign buyers and Florida is going up because of foreign buyers from Canada?

I need another beer.

#25 Rene on 07.19.17 at 7:43 pm

Rick’s Rant.

https://www.youtube.com/watch?v=3G-WBFF52-A

#26 oncebittwiceshy on 07.19.17 at 7:45 pm

….and on Ratehub they help to explain to those eager beavers just how to make that purchase. You can well imagine that cash strapped Canadians haven’t saved up the money to purchase these homes.

https://www.theglobeandmail.com/report-on-business/consumer-agency-pushes-for-clearer-info-on-home-equity-lines-of-credit/article35240517/

“After a period of explosive growth, outstanding HELOC balances in Canada reached $211-billion in 2016, up from just $35-billion in 2000.”

https://www.ratehub.ca/blog/canadians-buying-u-s-properties/

… but how many Canadians pay cash for a U.S. property? Well back in 2013, 89% of them did and that was way before things got stupid with prices.

http://business.financialpost.com/real-estate/property-post/canadian-snowbirds-squeezed-out-of-south-florida-housing-market/wcm/3e7f58f0-63e9-4545-bdaa-6ac56f6f214b

“The one advantage Canadians still have is the high value of their homes, which many investors use to finance a vacation property purchase, the economist said. A study by the National Association of Realtors in 2013 found 89 per cent of Canadians buying in Florida used cash.”

…. and this past year after the big CDN drop in value?

http://www.heraldtribune.com/news/20170128/foreign-buyers-passion-fades-in-florida

“Florida’s foreign buyers were more likely to purchase property for vacation, residential rental, or both uses. Just over half of them bought a townhouse or condo, and 72 percent paid cash.”

#27 Howard on 07.19.17 at 7:46 pm

The US has probably 40 or 50 cities where ambitious, educated people can move to in order to find gainful employment. In addition to the usuals (NYC, Chicago, etc), smaller cities like Austin, Minneapolis, Raleigh-Durham, or Portland have loads of opportunities. Even places you wouldn’t expect have some major head offices (Eli Lilly in Indianapolis, General Electric in Cincinnati).

Canada has, what, three, under a best case scenario? Toronto plus perhaps Calgary and Vancouver. Not much else. Vancouver is debatable in fact, since its job market is pathetic and propped up by housing. Montreal is corrupt and anemic.

If the 9-to-1 ratio of US-to-Canada population held, there would be at least 5-6 large to mid-sized cities appropriate for educated professionals.

So yeah, foreign buyers (and I don’t buy that 5% stat) will have a far greater impact in Canada when they focus nearly 100% of their home buying in 2 of our 3 cities with any opportunity for the native-born.

#28 Pete from St. Cesaire on 07.19.17 at 7:48 pm

POA’s are awful. The Public Curator’s office is far worse. It’s perfectly legal to move after-tax monies overseas. If your parents have a bundle have them gift it to you and move it to Switzerland or Liechtenstein, well beyond the reach of the Public Curator’s office. Do your parents trust you that much?

#29 bb on 07.19.17 at 7:51 pm

Why would the bank loan out money to an 82 year old unless she put on a huge downpayment (70-90% perhaps)?

Then mother would probably give the condo to her daughter when the time comes.

#30 Rexx Rock on 07.19.17 at 7:53 pm

Houses in Florida are less than half price then Canada because we have much higher incomes and basically free healthcare.Just goes to show you how much Canadians are better off with a stronger economy and much higher wages.

You need help. No, seriously. — Garth

#31 cramar on 07.19.17 at 7:55 pm

What happened to Susan’s mother might qualify as elder abuse! Perhaps Susan should seek the advice of an attorney to see if she can get out of the deceptive, maybe fraudulent, RE contract on this grounds.

#32 Howard on 07.19.17 at 7:57 pm

“Horny little beavers invading from the north snatched up $19 billion worth of properties, most of them in Florida, with suitcases full of cash. The average price of a Canadian-bought home hit $561,000 US – double the level of a year earlier. The median home value in Florida is $207,500.”

As mentioned in another comment here – get back to us when Canadians cause Florida’s median value to bubble up 4-fold.

Secondly, those Canadians are largely buying beachfront condos in Fort Lauderdale or bungalows in gated retirement communities in Boca. They are not fuelling bidding wars buying SFH in city centres, leaving them to rot while the native-born are pushed out.

Thirdly, if I’m not mistaken, most US states do not have Canada’s track record of looking the other way to money-laundering, nor do they have the many loopholes that Canada offers to foreigners.

#33 Hairhead on 07.19.17 at 7:58 pm

Wife’s family is going through a nightmare.

First, aged mother went into dementia, got put into a home. She and her husband refused to get a POA. So now her dementia is so far gone, she cannot sign a POA. And is is intestate, and will remain so, as she does not have the mental capability to make a will.

Her husband then died, refusing a POA, and refusing to write a will.

So, both parents intestate, one dead, and one in dementia, no POA’s.

Legal fees so far, to set up a committeeship for the mother? $40,000+. And much more to come when she dies (she owns a mortgageless Vancouver house worth $1.7 mil). Family animosity? Off the charts.

Get it done people!

#34 -=jwk=- on 07.19.17 at 8:01 pm

We buy in Florida because they are a good investment. 165,000 3/2 1450 sf home rents for $1400/mo. Same home in Toronto is 1M and rents for…$1500? $2000?

BTW Garth you are penalized for being out of state. The assesment value can jump 10% a year (3% cap for the locals) and the locals qualify for a 50,000 reduction in assessed value. So the lady who sold to me never have an assessment go up more than 3% and only paid taxes on 115,000 in value. I will have an immediate 10% jump and will pay tax on the full 165,000. The rules apply to any out of state so US investors also pay more. They are in place to prevent speculation and keep housing prices sane for the people who actually live there.

Still beats Toronto. By a lot.

#35 Nonplused on 07.19.17 at 8:01 pm

#12 Cloudy

No doubt. My own parents are barely in their 70’s but my siblings have already been on financial assistance from them for years. One of them even got dad buy her a house she simply couldn’t afford! But she’s got 2 kids so he didn’t see much choice. He thinks he’ll make money on it in the end when he sells but my mom considers it “rent to own” so I’m pretty sure it’ll be a gift. I on the other hand don’t even get a thought of assistance to put my kids through university. My ex and I got them most of the way through using RESP’s but they’ll need student loans to finish.

The main difference is my kids go to school in different cities and thus don’t see their grand parents much, plus my dad hates higher education, so there is no money for that, whereas he has other grand kids living nearby he sees a lot who pursue things he is interested in like music and teenage pregnancy, so that’s where he directs his funds. (Pregnant teens need help so I am ok with it, I was being sarcastic for the 30% of you who can’t recognize a joke.)

I’m doing ok, I don’t really want any of my parent’s money I think they need to keep it because they may live a long time yet, another 15 years at least based on family history. But it does kind of irk me that they are backstopping half the family for their bad decisions and ignoring the other half. This is what happens when you play favorites with your children, folks. Family strife. The absolute most surefire way to make sure your kids won’t talk to each other when they are grown is to pick favorites.

I’m pretty sure I don’t want POA. The situation I forecast is dire. Let’s say my parents end up in a home and their investments (they aren’t poor but not rich either) aren’t covering the expenses. But yet my dad has this house sitting there my sister is living in. What do I do? Sell it out from under her? Or ask all of the siblings to chip in to cover the shortfall while my sister lives in a free house? Only me and one other sibling probably even could chip in, but due to the course of things so far I am pretty sure I don’t want to.

Human nature sucks.

So this is post #2 different subject but related, on human nature.

I have recently taken an interest in what we can learn about human nature from youth sports. My son plays. What I have observed is not good, and it isn’t just the kids. The parent’s are probably worse.

First of all many kids, coaches, and parents want to win at all costs and they don’t care if they have to cheat. Despite the fact that the stated goal of youth sports is “fairness, sportsmanship, fitness and bla bla bla” at least half the participants never got the memo.

Let’s focus on coaches only or this will take all day. I’ve seen youth coaches use ineligible players, berate the ref (who is often a youth himself), run the score for no reason, encourage their players to cheat, and encourage their players and parents to taunt the other team when they score. Not good stuff, everything wrong with youth sports and the reason so many kids quit. All in the name of winning. Winning a youth game that means nothing. This is human nature.

Why is this interesting to the subject of POA’s? That coach is probably your brother. What you observe him doing on the soccer, baseball, football fields (or worst of all hockey rinks) is likely what he will do when it comes time to work out the unfortunate details of your parent’s old age.

Signing out now I think that might have been my longest ever. Sorry Garth.

#36 barnz0rz on 07.19.17 at 8:02 pm

Question for you Garth,

My financially illiterate father, who I managed to get on the balanced portfolio train after he cashed out his condo, gave a POA to his best friend, who’s health is not great. We do not have the closest relationship, so I do somewhat understand his desicion. I haven’t had this full discussion with him yet, but 1) what happens if his friend passes first (quite possible), and 2) if my dad passes first and there are expenses that are greater than his estate, am I responsible for those (as next of kin) or is his friend (as POA)?

(1) The POA expires. (2) Anyone who holds a POA is not responsible for debts, nor has claim to any assets unless named as an executor or beneficiary. — Garth

#37 William on 07.19.17 at 8:15 pm

But how many foreign sellers are there here and in the US? Foreign buyers numbers aren’t very meaningful unless you know how many foreign sellers. There has to be lots of Canadians selling in Florida every year.

#38 paul on 07.19.17 at 8:20 pm

#19 Howard on 07.19.17 at 7:29 pm

So…what happened? Did Susan manage to reverse the deal? Or stop it (not clear if her mother had yet signed)?

If this isn’t a case of Alzheimer’s onset, then this elderly woman is mind-bogglingly stupid and not to mention selfish.

But the realtor and the RBC bankster – do they have no shame? no conscience?
—————————————————————–
I don’t know but a client of mine try to put a mortgage on his mother house (she is capable) for her care 70k on a 650k clear property the bank said no.

#39 boonerator on 07.19.17 at 8:21 pm

My wife had to do a POA for her mother and stepfather.

Like pulling teeth, the level of delusion of stubborn nonagerians is very high.

Key was guilting them into while they still “had capacity”. If I had a quarter for every time I’ve heard
“I don’t need any help”, I could buy out Buffett.

If you start the POA process and they are not compos mentis, then doctors assessments come into it. Several thousand here in BC. So start early and use any tool you’ve got.
The argument that worked: “If you want to help me work for you, then sign this and I can do it.”

My wife and I have full POA for each other and if I buy that mining junior, she’s going to invoke it on me!

#40 Bonhomme Carnaval on 07.19.17 at 8:24 pm

RBC person(s) and realtor should be put down. Plain and simple.

$ $ $

To all foreign buyers reading this pathetic blog, la (plus) belle province (canadienne), that is Québec, is OPEN FOR BUSINESS!

#41 mouldyinYVR on 07.19.17 at 8:25 pm

http://seniorsfirstbc.ca/resources/legal-research-articles/power-of-attorney-article/
POA laws differ province to province…….If you are a senior in BC consider reading the above….choosing ‘to whom’ you wish to grant POA ..
“It is very important that you give careful consideration to whom you choose to act as your attorney (POA). He or she will have significant power over your financial affairs, and significant responsibilities. Choose someone who you absolutely trust, and who is good at handling money. While most people choose their spouse, child or other loved one to be their attorney, careful thought should always be given to the appropriateness of the appointment. In addition to the skills and trustworthiness of the person, you might consider whether the responsibility of acting as your attorney could cause undue stress or strain on the person or on your relationship.”
Many people do not give adequate consideration to the above while they are still mentally competent and risk putting themselves in a vulnerable situation.

#42 Mattl on 07.19.17 at 8:30 pm

Your anecdote about the old bird getting the boot says more about the shittiness of renting than anything else. All the talk about the freedom to be mobile doesn’t mean much to mouldy’s playing out the last few innings.

Is she really in a better place because she rented the last 10 or 30 years? And interesting that we hear all the horror stories about property maintenance yet this old crust’s landlord hasn’t touched the place in a decade.

Obviously its insane to buy now buy having a house paid off and not paying rent at 82 is a real tangible. I think Dot would agree.

You can rent a home. You cannot rent cash flow. For most, having both is not feasible. — Garth

#43 Shawn on 07.19.17 at 8:33 pm

Yet another example and ripple effect of the Canadian housing bubble. Canadians using new found “wealth” to buy US properties. When will the insanity end? (Hopefully over the next 6 months).

#44 North Vancouver Dream'n on 07.19.17 at 8:34 pm

This North Vancouver special just jumped from $1.95M to $2.66M. Catch it while you can @ https://goo.gl/HZgdW6

#45 Wrk.dover on 07.19.17 at 8:36 pm

At 95, my mother is less delusional than the Smoking Man.

Keeping control of her affairs until the eventual end. Looks like another decade to go too.

#46 Devil's Advocate on 07.19.17 at 8:37 pm

Can no one see the mother’s perspective? Perhaps everyone here reasonably believes that it is a curious time to buy, but how can we be so sure the mother is out to lunch? We have no information about the mother’s finances or whether she will be able to afford the true costs of home ownership. All we know is that she didn’t want to be forced to move, which would have been the likely result if the landlord sold to someone else. If that is her biggest concern, then can’t it conceivably make sense to buy. Maybe the daughter’s biggest concern is the effect on her inheritance. But, for now, it’s still the mother’s money. She can spend it however she wishes.

#47 Porsche on 07.19.17 at 8:42 pm

Too many Americans are buying homes they can’t afford

https://finance.yahoo.com/video/too-many-americans-buying-homes-172819544.html

#48 I'm Hungry on 07.19.17 at 8:46 pm

I have started a new diet, but I am so hungry right now. I wish this site dispensed a cookie for every time we read it.

#49 Harry Dick on 07.19.17 at 8:46 pm

As a Canadian citizen without a US work permit am I legally allowed to cut my own grass, clean-out the gutters, re-paint the exterior, replace the front door, build a deck? Seems I might be taking work from an American citizen if I attempted any of the aforementioned.

#50 Wrk.dover on 07.19.17 at 8:47 pm

We have a friend in Mesa that moved into assisted care with his ailing wife. She died, he looked bored, they told him to get back into the real world, so he bought a condo with a 30 year mortgage at 83 years old. Obviously has stocks out the ying yang as collateral and writes off the interest. He remarried last summer at 85. Healthy fella. His kids are rich and have no problems with his choices.

#51 Linda on 07.19.17 at 8:53 pm

POA needs to be done if the relative expects help when they are no longer able to do for themselves; if there is no real relationship/trust, not much point as the relative will resist to the bitter end. Fair enough, as there are no doubt valid reasons (other than delusional paranoia) for not wanting relative ‘X’ to hold POA.

I’m not impressed by bank/realtor, both of whom appear to be willing to enrich their business at the old ladies expense. Sadly, this is not uncommon – tons of unscrupulous folks out there who see nothing wrong with ripping off an elderly person. To be fair, they usually have no qualms about ripping off a young sprout either; with ‘friends like these’ one need not worry about any enemies as there is plenty of trouble to deal with already. The only consolation I can offer is that one day, if they live long enough, those nasty critters will be vulnerable to the exact same behavior. Wonder if they will regret their choices or whether they will be so out of it they won’t know or care what is happening.

#52 Spectacle on 07.19.17 at 8:53 pm

Speaking of Idiots:

Someone from a different company, but who we recently had to work alongside, just bragged about the Pre-sale condo he just put a $35,000 deposit on.

Oh, and he also told me about a great investment vehicle , pays some stupid amount of “projected” interest, and is somehow related to real estate loans. Yes, I read through the sales blurb, never seen so many asterisks and footnotes and caveats ( spellcheck) . Brag, brag , brag, smartest, already made money, etc. This being Mid July 2017 ( he deserves it , by the way).

Chew on that

#53 jay on 07.19.17 at 8:54 pm

https://www.theglobeandmail.com/real-estate/the-market/toronto-housing-takes-abrupt-turn-into-buyers-market/article35709009/ How long until this happens in Vancouver?

#54 the Jaguar on 07.19.17 at 8:55 pm

#17 Nick-

Big Bad Banks are not allowed to discriminate on the basis of “age”. If they did, “that” would go straight to the media like a rocket.
Poor old banks….just trying to scratch out a living in a troubled world.

#55 Kess on 07.19.17 at 8:56 pm

I work in a hospital. POA (for health) comes up all the time (one can have different POAs for health and finance). It’s a mess if there is no POA, no family, and incapacity. I’ve also seen young and middle-age couples in a panic with no money because of separate bank accounts where the only name on the account is on a breathing machine or incapacitated. Banks just won’t sign over access without some serious paperwork. Ultimately making these decisions…POA, bank account, etc is immensely stressful when a loved one is at their worst. Use this blog as a motivator…get your affairs in order, you just never know!

#56 Tony on 07.19.17 at 9:01 pm

DELETED

#57 D C on 07.19.17 at 9:08 pm

I agree with Devil’s Advocate, disagree with Garth. That’s a rare occurance! I feel very strongly about this case.

Someone at 80 yo is allowed to make a decision to stay in their own home. Even if it costs her too much money.

As long as someone can demonstrate UNDERSTANDING and APPRECIATION of the consequences of their decisions (the criteria for capacity in Ontario), people get to make silly choices and do so everyday.

It is her money, and as long as she can afford the payments she’s entitled to spend every last penny. Much like many people of MANY ages who spend every cent on whatever seemingly irrational vice they like.

(I do, however, agree with designating a conditional POA (the kind that gets enacted only upon declaration of incapacity. But they’re not for pulling the plug on misguided decisions, only incapable ones.)

#58 SimplyPut7 on 07.19.17 at 9:09 pm

I noticed many of the homes coming to market did not sell last fall and winter. The realtors won’t even make an effort to go out and take fresh pictures so people won’t notice the melting snow or trees with no leaves on it.

Did anyone else notice that home sales in the GTA are down even further after the Bank of Canada rate hike?

I thought now was the time to buy, before rates go up even further?

#59 Junior on 07.19.17 at 9:09 pm

There has been no price drops in van… still tons of bidding wars. Condos and townhomes especially. Even in the burbs a townhome is running 750-900. No drop, never will be. As for the US. How are we at record debt levels and you claim that all these Canadians have been buying up the US in CASH. Something is not adding up here

#60 M-cube on 07.19.17 at 9:24 pm

Garth, you are all wrong if you think the concern over foreign buyers has to do with xenophobia.

If has to do with having a vested interested in Canada beyond just viewing it as a place to park money.

This study of Las Vegas shows that all it took was 5% of buyers to be “outsiders” to distort the local market out of proportion with the local economy. Replace Toronto or Vancouver or Canada with Las Vegas in this study and you have your answer of why just 5% is not good for ALL Canadian citizens, permanent residents, or landed immigrants.

http://www.urban.org/sites/default/files/publication/24131/412941-Investors-and-Housing-Markets-in-Las-Vegas-A-Case-Study.PDF

#61 Asterix1 on 07.19.17 at 9:25 pm

Canadians should be worried about real estate slowdown, says expert

http://www.cbc.ca/radio/thecurrent/the-current-for-july-19-2017-1.4210699/canadians-should-be-worried-about-real-estate-slowdown-says-expert-1.4211831

The article starts off great with Hilliard MacBeth, a financial adviser and author giving his accurate analysis of the Toronto housing bubble.

As always with TStar, G&M and CBC, its followed by a super biased opinion to end the article. This time, its Brian Torry, a GM of Bosley Real Estate. Get ready for his intensive analysis of the To RE market.

“Toronto is incredibly tight right now. It’s very expensive. Rents are going up quite a bit. It seems like a fairly solid investment.”— What!! Rents are not covering monthly costs on these huge mortgages! A “solid investment”, he says, hilarious!

“….pointing to the recovery of Vancouver’s market as an example of real estate’s dependability”–Dependability? How about complete insanity! What happened in Vancouver (for now) will not be replicated in Toronto and GTA. Fat chance liar!

#62 Tony on 07.19.17 at 9:26 pm

Why would anyone want to buy a condo? Long term you’ll always lose money on a condo. I can just see the taxpayers of Canada picking up the tabs for all the condos the banks will repossess from all the Millennials in Canada.

#63 Bobby on 07.19.17 at 9:26 pm

For #29 Rexx Rock

So it is people like you that give us the governments we see in Ottawa and now in BC.
Nothing is free, somebody actually goes out to work and pays for it.
I think you need to get out more, perhaps expand your horizons a bit.
Reminds me of the letter writer to a local paper in BC complaining that the hospital emergency room was like the third world. My guess is she has never been out of the province.

#64 Annek on 07.19.17 at 9:32 pm

I work in a department with healthcare professionals. I was speaking with a millennial today.
She bought a condo in a good area about a couple of years ago. So it may have gone up in value. I know that her parents took a HELOC to give her some money for her place and she has a sizeable mortgage.
Anyways, she has met a young man who also has a house in a not so great area in the GTA.
They are planning on buying a small townhouse together in Richmond Hill.
When I asked if she was going to sell the house or condo , her response was that they were going to rent both out.
So, she will be losing both ways.
She will be buying close to peak, as I believe this housing correction is just starting.
She will hang on to both homes because she will be renting out. Both homes will be worth less in a few years down the road.
Plus, any mortgage for this new house.. can’t see her having much money to put down.
I do not understand how a person who went to university is not able to figure out the math?
I guess, houses always go up?

#65 Joseph R. on 07.19.17 at 9:32 pm

#48 Harry Dick on 07.19.17 at 8:46 pm
As a Canadian citizen without a US work permit am I legally allowed to cut my own grass, clean-out the gutters, re-paint the exterior, replace the front door, build a deck?
—————————————————————–

Yes.

#66 People are Strange on 07.19.17 at 9:40 pm

Re: horny little beavers invading from the north

When you sell your place in Florida or Arizona, you get nailed with a capital gains tax close to 20%. That’s why it’s not talked about!

Only if you make money on it. Foreigners selling in Canada pay 25% capital gains tax. — Garth

#67 Annek on 07.19.17 at 9:46 pm

Re # 9
“Both realtor and her RBC advisor are thrilled for her and assure her that in the long run she will be spending less money to buy than to rent, condo fees not a problem either.”

—-

Those two should be put in jail.
——————-
I agree . What’s the difference between a con artist and the Realtor and the RBC advisor in this case?
Taking advantage of a vulnerable old woman like that?

#68 genbizx on 07.19.17 at 9:48 pm

good posts howard..digging a little deeper rather than the usual “everythings ok, it’s canada, yaaay !! propaganda”

#69 Angela on 07.19.17 at 9:49 pm

Well we all can’t be Frank now can we? Shirley that would be a terrible thing…

#70 Victor V on 07.19.17 at 9:57 pm

OMERS in talks to sell Teranet for $3 billion: Report

http://www.bnn.ca/omers-in-talks-to-sell-teranet-for-3-billion-report-1.808803

Teranet has benefited from the boom in Canada’s housing market, the people said. Canadian housing market prices soared over the past decade, with Ontario in particular seeing strong demand from foreign buyers. For example, Toronto prices rose 29.3 per cent in the year to June 30, and have more than doubled since 2009.

The move by OMERS to consider offloading Teranet suggests that the pension fund believes it may be time to sell and take the returns when the market might be close to the top.

In April, the province of Ontario said it would introduce a property tax for foreign buyers in order to cool Toronto’s housing market. Concerns of a housing bubble have drawn warnings from both the Bank of Canada and the International Monetary Fund. While prices continue to rise, sales figures in Toronto have dipped in recent weeks.

#71 Nemesis on 07.19.17 at 10:01 pm

“And have you read a single negative story out of the US about foreigners taking over?” – HonGT

#WednesdayMischief,Or… #FunnyYouShouldAsk…

http://www.pasadenaindependent.com/featured/arcadia-officials-cancel-china-trip-react-to-allegations-of-impropriety-council-will-return-donations/

http://www.latimes.com/business/la-fi-san-gabriel-housing-20170223-story.html

http://www.latimes.com/local/lanow/la-me-ln-birth-tourism-persists-20161220-story.html

http://www.latimes.com/local/california/la-me-arcadia-mansionization-20150811-story.html

http://www.latimes.com/business/realestate/hot-property/la-fi-hp-chinese-real-estate-20160716-snap-story.html

http://www.latimes.com/business/realestate/la-fi-chinese-agents-20141101-story.html

#72 Smoking Man on 07.19.17 at 10:16 pm

The Nictonite group think is a bit pissed at me. Im being recalled to testify on behave of humanity.

Got this one on the buds.

https://m.youtube.com/watch?v=V1bFr2SWP1I

#73 Entrepreneur on 07.19.17 at 10:17 pm

I think like many other bloggers that the bank/realtor preyed on the 80 woman. With the best interest of the older woman they should have had the son/daughter present. Just to show respect and one never knows if she has lost some of her marbles. Grey area here, walking on glass.

“jet exhaust is water” and “nitrous oxides, sulphate and soot.” Has a “net warming effect” and “contributes to global warming.” These exhaust spread two km wide. Google “Air travel and climate change.”

#74 Entrepreneur on 07.19.17 at 10:19 pm

I still think that jets are one big massive hair dryer.

#75 paulo on 07.19.17 at 10:23 pm

# 31 Cramar

i am with you on your comment. maybe some of the dogs can advise. in either event susan should seek legal counsel this deal stinks i think your nana was taken.

#76 Bonhomme Carnaval on 07.19.17 at 10:23 pm

@ #27 Howard on 07.19.17 at 7:46 pm

Technology is changing the world. Your thesis is thought-provoking and credible, however it dates back to the middle of the 20th century.

Oh and, please stop the cliché Québec bashing. From where I’m standing, Ontario and BC are far from being good & righteous…

#77 Smoking Man on 07.19.17 at 10:25 pm

When truth beats job security.

https://www.youtube.com/watch?v=xwtdhWltSIg&sns=em

#78 daveyboy on 07.19.17 at 10:29 pm

I moved to the U.S. 5 months ago from toronto. The life down here is much better. I make half of what i used to , but am able to do so much more with it. On a 40 k salary i was able to purchase a home ,save money and still have a life.

Good luck Toronto.

#79 I like cookies on 07.19.17 at 10:31 pm

My parents are in their mid-70s and I have no idea what their plans are — they refuse to talk about finances at all. It will certainly be a mess to sort through whenever that day comes. I try not to think about it.

#80 viorelli on 07.19.17 at 10:37 pm

Those who are past their mid-20s and still living at home for free and at the same time not helping their parents with numerous choirs are simply parasites who are spoiled brats who will ultimately fail in life later when all financial support has stopped. I was 19 when I had to move out of my parents basement in Vancouver. My dad told me: either you are in school full time, help in the kitchen, cut the grass, wash the car on the regular basis or you pay rent, no girlfriends allowed over night! This was a while ago and things were manageable in Vancouver. I shared a 2br unit with 3 other guys, while working as a casino dealer and going to school full time (after spending one year in Japan helping a friend with his English teaching business). The earlier you start swimming on your own the better swimmer you will become, the weak will drown! Now my boys are going through the same schooling, no slacking and no parasitism in this household, nobody owes you anything. The only way to real success is to get your own.

#81 Ronaldo on 07.19.17 at 11:06 pm

#1 Doug t on 07.19.17 at 6:46 pm

I do not believe there is another species on the planet (or the universe) as dumb as we humans – we are the worse thing to ever happen to this planet

RATM
————————————————————
George figures that too.

https://www.youtube.com/watch?v=AyifuNC0MT8

#82 conan on 07.19.17 at 11:17 pm

The condo is 14 years old, but they are easy and cheap to renovate, especially with the building materials that are being manufactured these days.

Also, where is the condo? If it is in a wham bam area,then it is going to rent easily. So many variables.

This is not an obvious rip off situation, when was the sale made?

https://www.youtube.com/watch?v=chwKpaiM2EI

#83 Smoking Man on 07.19.17 at 11:22 pm

The moment your mind beats the machines.
https://youtu.be/LRP8d7hhpoQ

#84 Chaddywack on 07.19.17 at 11:36 pm

@#44 Love the listing!

The realtor says:

“More than 300k below the assessed value”

It’s assessed at 2.2 and they’re looking at 2.66666666666 (possibly the new “8888888” for Vancouver prices?)

More like 300K above!

Math is hard

#85 Smoking Man on 07.19.17 at 11:37 pm

https://youtu.be/XFkzRNyygfk

#86 New record: $2,090 a month is average cost of one-bedroom rental in Vancouver on 07.19.17 at 11:39 pm

http://globalnews.ca/news/3609431/new-record-2090-a-month-is-average-cost-of-one-bedroom-rental-in-vancouver/

#87 Tedfiftyfour on 07.19.17 at 11:48 pm

I think you have crossed a line Gartho. If this older lady choose to purchase the property to ensure she could live out her life where she had already lived for 14 years what’s the problem. At this age familiarity is more important than. The other option was a care home, a new rental apartment elsewhere in unfamiliar surroundings. If you don’t care what this lady wanted for herself and your only interested in what moneys left for others then you are on target. I suspect many older people don’t sign POA because of the fear of opinions like yours. I spend $10k renovating a bathroom for my Mother that she only need for a year or two but who cares. She was happy to have it for the short time she could use it.

#88 Mohammed on 07.19.17 at 11:56 pm

My Brother and his wife came to borrow money from my mom today.(brought some chicken tikkas) asking my Mom if he can borrow from her equity to buy investment property in Milton. My mom had to almost fight him off and said NO! he wanted his share now, didnt want to wait for her to die because prices will go up.
both husband and wife have some nerves! can u believe it?
True story !

#89 Blademaster on 07.20.17 at 12:04 am

Garth, got a story for you!

My bro, married to a crazy b****, +1 baby, purchased a 90 yr old shack in Markham just off Main St (Not Unionville, the other one at Markham Rd) at the absolute peak – selling price? 800k!!! Pictures simply don’t do this shack justice.. My Dad tried to reason with him, but he got irritated and said “saleis final, and *shack* is the start of a new chapter in his life”.. when asked what he planned to do with his 2 bedroom condo, he replied “we will rent it out”.. No doubt story similar to hundreds if not thousands of ‘moisters’ and ‘amateur RE speculators’ in the GTA.. I’m pretty sure condo is paid off, but they are probably carring a +$500k mortgage, with down payment already wiped out following a 15 to 20% haircut over past 3 months.. wife took out entire savings to help out woth down payment.. He was bragging that he was up 25% on his condo (in April).. All i can do is pray for them!!! Idiots!!!! *please keep my name private*

#90 MF on 07.20.17 at 12:20 am

#62 Tony on 07.19.17 at 9:26 pm

Millennials buy condos because houses that should cost 400k cost 1.3 million and renting is crap. Here in the GTA people have made money on condos and, despite all the headlines, condo sales are still hot.

#64 Annek on 07.19.17 at 9:32 pm

Can’t really blame people for thinking like that. Anyone who had that strategy for the past 15 years has gotten out ahead, especially if they are starting out and the leverage was used to their advantage. 6% annual ROI from a balanced portfolio of 50k is only $3000.00 (who cares).

MF

#91 MF on 07.20.17 at 12:28 am

#42 Mattl on 07.19.17 at 8:30 pm

100%.

Same thing happened to me recently. First landlord sold his unit to another buyer.

Had people coming over for showings at the worst times (right after work) and had my girlfriend afraid her valuables would be stolen. After the unit sold, the new owners raised the rent and came in to the see the place one last time. They were nice, but we felt like nothing but an obstacle in the way while the place was shown off. This is ignoring the fact the seller made money off my rent the whole time.

Good for the mother. We don’t know her financial situation, but we do know that renting is garbage, and at that age, the last thing anyone wants is a rent increase or to be kicked out when the new landlord moves in.

MF

#92 MF on 07.20.17 at 12:35 am

#78 daveyboy on 07.19.17 at 10:29 pm

I work with a guy from California who says the complete opposite of you. Says Americans work way longer hours, get paid less, and have less time to do anything than Canadians. Says life is actually slower in the GTA.

MF

#93 paulo on 07.20.17 at 12:40 am

#86
wow for a province with one of the lowest minimum wages,essentially a service economy= low wage employment for the most part.try to rent one to a Chinese dude lol you guys out there are going to have one hell of a reckoning with reality sooner than you think

#94 Nick on 07.20.17 at 12:46 am

Why does everyone think she was scammed? What makes you think she’s taken out a loan? Did I miss something in the article? It said “RBC Advisor”, not “RBC Loan Agent”. Perhaps she bought this using her savings held at RBC, not using a mortgage? How about respect your parents and don’t declare them insane because of your hyper-sensitivity?

There is a lot to be said about peace of mind and personal housing stability; and I’d argue that parking your money in your OWN home is better than the legalized ponzi scheme that is the stock market. Maybe Suzan is just bitter about what’s going to happen to her inheritance? Don’t worry Suzan, you’ll be just fine.

While I agree that the market is over-hyped right now, in the long run Real Estate is only going one way. You doom-and-gloomers will cheer when there is a minor drop in prices, but in the long run it is bound to go up. They’re not making any more land.

#95 Islandtrip on 07.20.17 at 12:58 am

Born and raised Victoria – lucky me? 30 y.o sitting on 150k cash/tfsa, renting cheap place with partner. Combined income 170k. Currently priced out of the market in our opinion.

Its embarrassing to know how house poor young families are willing to be. Sure, that old house is worth a bit more right now, but you can’t sell it – too busy… paying for the new septic field, roof, deck, double pane windows, etc. Not to mention, the 1k/month/kid day care that took years to get into.

It would be nice to stay in the capital city. Surrounded by friends and family. But its sad out there. Bidding wars. Oh.. All you UVIC students… Good luck finding a place to rent.

#96 Ponzius Pilatus on 07.20.17 at 1:09 am

#79 I like cookies on 07.19.17 at 10:31 pm
My parents are in their mid-70s and I have no idea what their plans are — they refuse to talk about finances at all. It will certainly be a mess to sort through whenever that day comes. I try not to think about it.
—————-
You are a selfish asshole.
Just waiting for your makers to die.
So you can reap what you never sowed.
Burn in hell.

#97 Pete from St. Cesaire on 07.20.17 at 1:12 am

VIORELLI: “The earlier you start swimming on your own the better swimmer you will become, the weak will drown! Now my boys are going through the same schooling, no slacking and no parasitism in this household, nobody owes you anything.”
———————————————————-
I admire your convictions. Taking full responsibility. Knowing that your kids themselves (along with yourself since it is you who foisted these morals upon them) are 100% responsible for whatever outcome their life hands them. I’m glad to hear that if they, after decades of hard work and frugality, are faced with a government that changes the rules for the sake of short-term popularity, they won’t be bitching about how unfair it all is, knowing that it was solely their own disciplinary shortcomings that dealt them the hand of misfortune.

#98 Vanrentor on 07.20.17 at 1:18 am

My parents are both 84 and still fairly with it. They have recently updated their will and don’t have a complicated estate.

Should we set up a POA now or after one of them passes away?

#99 Where's The Money Guido? on 07.20.17 at 1:49 am

Re: #69 John on 07.16.17 at 10:07 pm
Amazing how people who expose the criminal elite end up killing themselves just before they would testify

http://www.zerohedge.com/news/2017-07-16/haiti-official-who-exposed-clinton-foundation-found-dead

http://www.arkancide.com/ has all the info on the Clinton’s dealings in MURDER
They’ve been pretty busy over the years, I think the number is over 150 arkancides now.

#100 Hugh Janus on 07.20.17 at 2:32 am

#9 no name

Yes, in the perfect world, it would be ideal. Put tbem in jail. The little beotches.

However, as garth has eluded to, time and again, ya cant fix stupid.

#101 Hugh Janus on 07.20.17 at 2:53 am

#86 2090 a month.

If $2090 a month is too rich for your blood, you should hitchike out of lotusland while you still have not chewed your tbumb off.

As i fantasize of interactive building control as per my degree, i do still butter tims bagels to pay that 2090.

No big deal and i still invest more than $600 per month in my balanced porfolio as per garths advice.

My wife and i are immigrants for 3 years now, and moving up!!

Only a fool would buy canadian real estate!!

Peace, y’all!!

#102 Howard on 07.20.17 at 2:57 am

#76 Bonhomme Carnaval on 07.19.17 at 10:23 pm
@ #27 Howard on 07.19.17 at 7:46 pm

Technology is changing the world. Your thesis is thought-provoking and credible, however it dates back to the middle of the 20th century.

———————-

Technology is changing the world? Thanks, I didn’t know that!

Now you tell me how many jobs in Canada are available to those who want to work remotely while living in an affordable city. Not very many, particularly when excluding IT (and those jobs are often contracted out to India anyway).

And what does this have to do with the impact of foreign buyers? When Canada has so few localities with any opportunity, foreigners will have an outsized impact when they focus on those very same localities.

#103 dakkie on 07.20.17 at 5:33 am

Canadian Home Sales Crash In June & Auto Loan Defaults Soar

http://investmentwatchblog.com/canadian-home-sales-crash-in-june-auto-loan-defaults-soar/

#104 Mike in Toronto on 07.20.17 at 6:12 am

Rents are skewed by overly ambitious condo owners and airbnb short-term apartments listing their monthly rates. Rents are up, but not the way the media’s talking about them.

My building is still renting out 2 bedroom units for $2100/mo in the core of Toronto. There are cheaper buildings too, but admittedly vacancy becomes an issue then.

Millennials have odd needs though. A friend rented out our old 1br apartment (a steal at $1100/mo 1br), but admitted that he never washed a dish by hand before and didn’t know how shared laundry machines worked.

If you can’t bring yourself to touch dishwater or emptying somebody else’s lint trap from their load of underwear, taking an apartment half the size for $500/mo in additional rent will get you a dishwasher and very compact laundry machines…

#105 Here's The Deal on 07.20.17 at 6:22 am

Here’s the deal:

Old people are effed in the head. Whether it’s full blown dementia, Alzheimer’s or other, or just plain old stubbornness, orneriness, and just losing it in general, old folks are their own worst enemies.

The longer humans live, the more of a problem they become to themselves and those around them.

People have expiry dates. Once they live beyond their expiry dates, they go bad. They start to rot physically and mentally. They become dangerous.

POAs should be mandatory by law.

Demented wrinklies have a tendency to piss away their accumulated wealth by making poor decisions.

Not having POAs in place for the old folks is akin to letting 5 year olds run their own lives.

Sounds harsh. Real life is tough and unpleasant.

#106 Sad! on 07.20.17 at 7:15 am

Great advice Garth.

Just reading about the proposed OSFI stress tests, CIBC’s Tal is quoted saying that policy makers shouldn’t rush in all these changes at once because a decline in the housing market could bring on a recession.

If our economy needs to continue using over-leveraged consumers (albeit government-insured! :) ) to purchase housing, then it is clear we are already in a recession and are just shuffling paper around to hide it. Let’s get this “recession” “started”, and maybe Canada will finally learn that we need a REAL source of GDP. Canadians are living in a ridiculous fantasy right now.

#107 maxx on 07.20.17 at 7:21 am

#35 Nonplused on 07.19.17 at 8:01 pm

Post #1: Let the “favorites” take care of daddy dearest;

Post #2″: Organized sports are very often dirty pool. A definite form of EBT in this case – Early Business Training.
In Canada, it might also be conditioning for bidding wars.

Let the games begin!

#108 WUL on 07.20.17 at 7:24 am

If I had any brains, I would give my 87 year old mother a power of attorney to manage my financial affairs. Hands down, I would be better off.

Alas.

#109 maxx on 07.20.17 at 7:27 am

#40 Bonhomme Carnaval on 07.19.17 at 8:24 pm

“RBC person(s) and realtor should be put down. Plain and simple.

$ $ $

To all foreign buyers reading this pathetic blog, la (plus) belle province (canadienne), that is Québec, is OPEN FOR BUSINESS!”

Yes……..just remember to bring your own doctor, genius!

#110 Trumpocalypse2017 on 07.20.17 at 7:49 am

OMG OMG OMG.

Read the interview with Trump in the NYT.

https://www.nytimes.com/

Dude is totally unhinged, speaking in garbled verse about how he is turning on his own inner circle.

Hitler in his bunker, part deux.

Trump desperately needs distraction. War will provide that.

The Summer of Hell is upon us.

Prepare.

#111 Renter's Revenge! on 07.20.17 at 7:57 am

#105 Here’s The Deal on 07.20.17 at 6:22 am

One day you’ll be old too. Please remind us of your expiry date two weeks in advance so we have time to prepare for your disposal.

#112 Livin Large on 07.20.17 at 8:08 am

“Big Bad Banks are not allowed to discriminate on the basis of “age”. If they did, “that” would go straight to the media like a rocket.” Well, maybe but they are able to decline credit for a myriad of reasons, not least because of a lack of proof of securable income. There is no obligation to lend to anyone. Sure, mom might have been willing to hypothecate her investments but again, there is no obligation to lend even if the loan is 100% secured.

A “mortgage” may mean “until you die” but banks REALLY don’t want the mess of exercising their rights on securtity once the borrower does die. The process would cost them more than any interest they could envision collecting.

The impression I get, presuming that these folks are actual people rather than just an interesting example to make a point is the [email protected] is giving simplistic advice because the old woman has fixed income investments and the lost interest on those treasuries is close to or less than the rent the woman saves. So, “just use your 2% GIC and stop paying rent”.

#113 jess on 07.20.17 at 8:12 am

“wealth managers”

“According to the statement of facts and the plea agreement, Susanne D. Rüegg Meier, admitted that from 2002 through 2011, while working as the team head of the Zurich Team of Credit Suisse’s North American desk in Switzerland, she participated in a wide-ranging conspiracy to aid and assist U.S. taxpayers in evading their income taxes by concealing assets and income in secret Swiss bank accounts. Rüegg Meier was responsible for supervising the servicing of accounts involving over 1,000 to 1,500 client relationships. She was also personally responsible for handling the accounts of approximately 140 to 150 clients, about 95 percent of whom were U.S. persons residing primarily in New York, Chicago and Florida, which held assets under management totaling approximately $400 million. Rüegg Meier admitted that the tax loss associated with her criminal conduct was between $3.5 and $9.5 million.

Rüegg Meier assisted many U.S. clients in utilizing their Credit Suisse accounts to evade their U.S. income taxes and to facilitate concealment of their undeclared financial accounts from the U.S. Department of the Treasury and the Internal Revenue Service (IRS). She took the following steps to assist clients in hiding their Swiss accounts: retaining in Switzerland all mail related to the account; structuring withdrawals in the forms of multiple checks each payable in amounts less than $10,000 that were sent by courier to clients in the United States and arranging for U.S. customers to withdraw cash from their Credit Suisse accounts at Credit Suisse locations outside Switzerland, such as the Bahamas. Moreover, Rüegg Meier admitted that approximately 20 to 30 of her U.S. clients concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities or other structures that were frequently created in the form of foreign partnerships, trusts, corporations or foundations.

Between 2002 and 2008, Rüegg Meier traveled approximately twice per year to the United States to meet with clients. Among other places, Rüegg Meier met clients in the Credit Suisse New York representative office. To prepare for the trips, Rüegg Meier would obtain “travel” account statements that contained no Credit Suisse logos or customer information, as well as business cards that bore no Credit Suisse logos and had an alternative street address for her office, in order to assist her in concealing the nature and purpose of her business.”…

https://www.justice.gov/opa/pr/former-credit-suisse-banker-pleads-guilty-conspiring-us-taxpayers-and-other-swiss-bankers

#114 crowdedelevatorfartz on 07.20.17 at 8:20 am

@#53 jay
“How long until this happens in Vancouver?”
*******

Unfortunately.
Its about 5 years overdue….

#115 TurnerNation on 07.20.17 at 8:30 am

Our next PM? The good ones were pushed out of the way.
Article is all about gender. Frankly and based on the pictures I ‘m having trouble ID-ing .
It’s been flipped these days. Would not wish to meet any of them in a dark alleyway..

http://www.cbc.ca/news/politics/andrew-scheer-house-leadership-team-1.4212458

#116 A Reply to #113 jess on 07.20.17 at 8:36 am

“According to the statement of facts and the plea agreement….”

Do you know what were the terms of the plea agreement? What penalties, if any, is she facing?

#117 maxx on 07.20.17 at 8:39 am

#54 the Jaguar on 07.19.17 at 8:55 pm

#17 Nick-

“Big Bad Banks are not allowed to discriminate on the basis of “age”. If they did, “that” would go straight to the media like a rocket.
Poor old banks….just trying to scratch out a living in a troubled world.”

….just trying to scratch out a killing in a troubled world.” ;-)

#118 crowdedelevatorfartz on 07.20.17 at 8:40 am

@#96 Ponzi Pilates
“You are a selfish asshole.
Just waiting for your makers to die.”
*******

You assume the parental units will actually have anything left when they die.
I know a ton of people that are sitting and waiting for the cash when their parents die.
Disgusting , Ghoulish, parasitical.
I dont think thats the case with this commenters’ story. The parents arent dealing with their impending demise and the child will be left to sift through estate lawyers, govt beaurocracy, etc etc etc. An expensive, major pain in the ass.

However there are scum out there circling like vultures over their parents.
I personally told a 50 something exfriend he was a disgusting piece of shit when he openly bragged that he was waiting for his rich elderly parents to die. One only hopes they blow all their money at a casino one week before the Grim Reaper comes calling. Unfortunately they dont gamble and their son will get a huge estate

#119 crowdedelevatorfartz on 07.20.17 at 8:42 am

@#110 trumpocalypse 2015, 2016, 2017, 2018

This broken record is getting boring

#120 MF on 07.20.17 at 8:43 am

http://business.financialpost.com/news/economy/polozs-rate-hike-spells-trouble-for-trudeaus-david-and-neera/wcm/bdf1ae18-978f-4a1b-b852-0e689cdae38f

-interesting read. BoC rate hikes coming at a bad time Trudeau and his stupid tax and spend policies.

Particularly impacted will be a large percentage of his idiot supporters: indebted college/university “educated” millennials in large urban centres.

Good.

MF

#121 Sprawl on 07.20.17 at 9:04 am

It’s wise, for a POA for Property, to have a new POA for Property done every 4 or 5 years. If the estate is litigated the Estate Executor’s accounting period for Passing of Accounts is more manageable.

Estate law had changed in Ontario. No longer does a litigant have to prove neglect for the necessities of life. They can just ask, “Show me the money audit trail”.

It’s also foresightful at the same time the new POA is signed to: 1) Obtain a letter from an MD as to their state of mind at the time of resigning. 2) Order a credit bureau, from Equifax and file it all away. 3) If they own real estate get a real deal appraisal done. 4) List of assets with supporting documentation. File it all away in that special file you’ve bought just for POA stuff. If you have to pass accounts your opening balances will be undoubted.

It’s all about the passing of accounts court tariff for estate troll litigators. Roughly 4.5% on Receipts and Disbursement. On a $500,000 house sale that’s $45,000.

If your accounts fail to pass trolls will try to have you remove. They prepare the accounts which the court requires to make judgement in a contested estate.

Lastly, the stories in the news about some scoundrel draining their parents estate for $100s of thousands. Are the exception, that’s why its news. The vast majority of POA are caring children of their parents being abused.

In fact the Ontario Superior Court is overwhelmed on University. A few years back Estate hearings had to move to the old Canada Life building and estates takes up the whole building with dozens of court rooms. Estates used to be heard in the court across the street with everything else. Now Estates requires it’s own 10 story office tower.

#122 john on 07.20.17 at 10:10 am

Wow those mortgage brokers trying to pump this nonsense… what a hilarious blog post.

https://dominionlending.ca/news/debt-income-meaningless-metric/

#123 InvestorsFriend on 07.20.17 at 10:39 am

Let’s clarify the meaning of Power of Attorney as we use it here

Garth responded to me at number 11 where I said:

So Ageism is allowed on the blog?

“Susan, like every person with an 80-year-old parent, should have arranged for a POA in advance.”

****************************************
I don’t think so, not unless actual dementia is present.

A lot of octogenarians and beyond are more financially capable than their grown children.

Get back to us on your opinion about this when you hit 80.

Having a POA in place does not mean it is invoked. Plus, one must be granted when competent, not when afflicted. Too many have discovered this too late. — Garth

*************************************
Okay, my mistake I thought Garth meant we should be taking over the affairs of any parent who reaches 80. No, he is saying appoint a person who will take over the affairs as attorney ONLY in the event the parent is later ruled mentally incapacitated. The parent can only agree to this BEFORE they become incapacitated.

Okay, that seems reasonable. But there are many parents who would not trust their children to be power of attorney. After all the children have a direct conflict of interest if their is a potential inheritance. And how hard is is to find two medical doctors to sign off on mental incapacity?

And if we are starting to suggest that a home purchase by an elderly person at the top of the market is almost automatically a sign of mental instability we go a step too far.

We may very well be at the top of the market in Toronto and past it. But many of us thought the same every month for about the last ten years.

If an elderly person will still have funds to live on and for expected health care even after potentially over-paying for a condo, so be it. It’s (still) their money and their decision if they are not mentally incapacitated.

#124 Dan.t on 07.20.17 at 10:47 am

http://business.financialpost.com/news/economy/polozs-rate-hike-spells-trouble-for-trudeaus-david-and-neera/wcm/bdf1ae18-978f-4a1b-b852-0e689cdae38f

What is wrong with people? Like I’ve said before, to create the bubble local media outlets were pumping real estate puff pieces 24/7, gov give massive incentives to buy, buy, borrow, borrow and look what it’s done .

Basically a house economy. Now slowly the news outlets are warning about the risks of housing and debt, because it is time to change the agenda. All by design.

Cry me a river. Boo hoo, I deserved a 680k condo with my 42k salary, bank said I can afford it and mom gave me 150k , now I have SUV payment , a home line of credit, massive debt and rates are gonna rise, it’s so unfair!!! I can’t even afford my Starbucks chai latte everyday, actually I can cause I use a credit card.

This is the impression I get from debt pigs. Deal with it. No one forced you to live way beyond your means. I hope rates rise 2% higher next meeting. Let’s see how many 950k abbotford Houses change hands or 400k condos get flipped . The stupidity in BC can’t end soon enough.

it’s cheap money that has caused all the debt in the system. End the cycle now!

#125 InvestorsFriend on 07.20.17 at 10:49 am

Buy VIX to lose money

Some people here talk about the nonsense that is the VIX volatility index.

I saw a note a couple days ago that a VIX ETF will be consolidated down with one new share for every four. They do this periodically because an index like VIX automatically heads to zero in the long term. A VIX ETF has expenses each month. It can go up temporarily but by nature will head to zero in the long term. Oh the volatility itself does not go away, just the money used to buy VIX. Over any given shorter period of time some VIX ETF investors win and some lose and it is a negative sum game in total after costs. Over very long periods of time a VIX ETF must head to zero.

Anytime an investment advisor recommends investing in VIX, RUN. It’s a sign of a gambling mentality not an investment mentality.

#126 RainCoast on 07.20.17 at 10:59 am

For Americans that’s a drop in an ocean since every inch of their land is inhabitable & 400 million people vs our small patches of land and 35 million people. We’re much more affected by foreign buyers since our supply is so low.

#127 Alistair McLaughlin on 07.20.17 at 11:21 am

@#30 Rexx Rock, don’t forget we also have warmer winters than Florida. I mean, since you were being completely sarcastic with that post…. weren’t you?

#128 crossbordershopper on 07.20.17 at 11:32 am

DELETED

#129 Chaddywack on 07.20.17 at 11:37 am

That article about rents being up to $2,090 for a 1 bedroom in Vancouver is FAKE NEWS!

They used padmapper averages that include AirBnB rentals that completely skew the averages upwards. More fear mongering. I’ve been looking regularly at rentals in Vancouver and I would say that prices have eased quite a bit since this time last year, at least 10-15%.

Then again I’m not expecting a 1 bdr that allows a pet and smoking, on the westside for $1,200 per month like all the Hipsters the media interviews for its “woe is me” rental stories.

#130 Bonhomme Carnaval on 07.20.17 at 11:49 am

@ #109 maxx on 07.20.17 at 7:27 am

What does that have to do with the price of fish?

#131 Wrk.dover on 07.20.17 at 11:52 am

#108 WUL on 07.20.17 at 7:24 am

If I had any brains, I would give my 87 year old mother a power of attorney to manage my financial affairs. Hands down, I would be better off.

Alas.

————————————————

Probably 95% of the country would be better off with a similar arrangement too.

#132 Poorgirl on 07.20.17 at 11:56 am

#105 Here’s The Deal- Garth should ban you, you ageist creep!
#42 Mattl- Not much better, where is the respect, “old crust, old bird” etc..

Garth: Why is ageism so tolerated on this blog? Not that it matters, but for all we know the 82 year old woman was of sound mind and in a financial position to buy. So she may have overpaid a little. If she can afford it, who cares? Probably just wants to live out her remaining years in peace. Susan is just worried about her inheritance, IMHO.

#133 Bonhomme Carnaval on 07.20.17 at 12:00 pm

@ #102 Howard on 07.20.17 at 2:57 am

The two great Canadian fallacies :

1) University education = guaranteed ‘good’ job

2) Urban living is the only option

Lastly, Canada is a free country; you can come and go as you please.

#134 cd on 07.20.17 at 12:08 pm

Hey… has anyone been using the realtor.ca site lately. As the market unwinds their site seems to become more unreliable. Almost like they don’t want people to get current market information.

#135 Ace Goodheart on 07.20.17 at 12:13 pm

RE: houses in Florida: Is everyone nuts?

The only reason why you would need a house in Florida, is if you live in Florida.

If you are vacationing there or wintering there, rent a place. They are dirt cheap. It is hot everywhere. The entire State is a beach. There is no alternative reality where it makes sense to buy property to live in for two months of the year, anywhere. Just rent a place down there.

Also, for all the eager Florida condo hunters who are hell bent on getting a beach front location. Have you ever heard of a Hurricane? You will………

#136 Old Dog on 07.20.17 at 12:26 pm

#128 crossbordershopper

Don’t focus on what other people do or get, focus on yourself. Life isn’t fair, it never was and never will be. Nowhere in that contract, even in the fine print, does it say life will be fair. Quit worrying about what others are doing and get on with making yourself successful.

#137 jess on 07.20.17 at 12:30 pm

Conan said:
“Fiduciary rule means a financial industry collectively putting up a shingle that says “out of business.” As go balanced, and do it your self, is the only advice that fits its narrow legal definition.There will be no invention,or creative spark, just a one dimensional financial market that will eventually stagnate the entire economy.You would be eliminating thousands of jobs in order to create a society that is shooting itself in the foot. I can see why the financial industry is fighting this. ”
==================
I believe this would create more jobs.
There are plenty of good advisors that put the client first. Too much mis- selling,conflict of interest, deferred prosecution agreements and lastly all the liar loans. Trust — a pillar of productivity. It affects every level of business. Perhaps one of the reasons why productivity number is so low?

Look who is the new CEA advisor, Kevin Hassett, to President Trump. (James K. Glassman and Kevin A. Hassett (May 2010), Dow 36,000, Letters, The Atlantic, retrieved 12 April 2017
https://en.wikipedia.org/wiki/Kevin_Hassett
https://www.c-span.org/video/?152230-1/dow-36000-new-strategy

http://www.investopedia.com/articles/financial-advisors/040716/first-look-finalized-fiduciary-rule.asp

#138 oncebittwiceshy on 07.20.17 at 12:43 pm

Dan T. “it’s cheap money that has caused all the debt in the system.”

Cheap money, Dan and something a little bit more problematic for all of those “conservative Canadian” comments over the years.

Not only are we stupid for not learning from the American’s crash, we are even more stupid for following in their footsteps in every regard.

http://vancouversun.com/news/local-news/vancouver-real-estate-in-the-red?cn=bWVudGlvbg%3D%3D&cn=cmV0d2VldA%3D%3D

“Postmedia’s review of over 30 regulatory or civil court cases shows a trend of allegations that home buyers and real estate professionals are involved in deceptive mortgage applications that include exaggerating the incomes of borrowers, forged documents of home ownership used by multiple borrowers to obtain mortgages, phoney claims of offshore assets used to back home loans, falsely inflated collateral accepted by subprime lenders to fund real estate development loans, and falsified CRA tax return documents.”

#139 AGuyInVancouver on 07.20.17 at 12:46 pm

#59 Junior on 07.19.17 at 9:09 pm
There has been no price drops in van… still tons of bidding wars. Condos and townhomes especially. Even in the burbs a townhome is running 750-900. No drop, never will be. As for the US. How are we at record debt levels and you claim that all these Canadians have been buying up the US in CASH. Something is not adding up here
________________________
That’s because townhouses and condos are all locals can afford. Houses sit waiting on the market for months, their greedy sellers hoping for a Chinese buyer who has managed to get around Xi Jinping’s new capital outflow restrictions.

#140 n1tro on 07.20.17 at 1:01 pm

#128 crossbordershopper

First Nations (that’s the current PC word right?) people get special treatment because the white man took their land I am told. I’m jealous that they get an automatic seat in medical or law school having gone through undergrad for free of course. However, I don’t think the budget for grad school is in jeopardy anytime soon since it is easier to just take government hand outs. Hell I would! There are some enterprising natives out there though. Since indian land has their own laws, a few entrepreneurial folks have set up server businesses used by companies (gambling related) to skirt regulatory laws.

So much potential if one has “native” status. Too bad most natives can’t let go of the past to get out of their downward spiral.

#141 Bob Dog on 07.20.17 at 1:07 pm

Shouldn’t this POA thing apply to The Donald?

#142 n1tro on 07.20.17 at 1:13 pm

#132 Poorgirl

Ageism is allowed…and encouraged(?) here. If not, Boomers couldn’t rag on Millennials. Millennials couldn’t blame their problems on everyone else. Gen X would have to keep silent on working along side attention deficit entitled Millennials all the while, Gen Z sits back laughing at all of us.

#143 jay on 07.20.17 at 1:16 pm

http://www.straight.com/news/938246/home-search-mother-and-son-keep-dream-alive-despite-higher-interest-rates Garth the house horny are still alive and well in Vancouver.

#144 Waiverless on 07.20.17 at 1:22 pm

#140 n1tro

Hate a changing world? Google residential schools and read about what happened. Really read it before you start spouting that garbage. I paid for all 3 of my degrees out of pocket but I don’t begrudge First Nations for anything – the world is more complicated than your simply glass house world view and it’s changing.. deal with it.

#145 paulo on 07.20.17 at 1:22 pm

#84 nick:
nice try dude. we are talking about a 84 year old woman here,purchasing a condo in a market that is in the early stages of a major correction. yes we do not know the full details or the daughters actual involvement. fact of the matter if the lady put a substantial amount down assuming this condo sold in the 500 k range this was a ill advised move,unless she did it to leave it to the daughter. otherwise she could have shagged out at a 5 star retirement facility to dawns early light and left a pile of cash for the daughter,whom could have likely purchased the same unit looking 18 months out for half the price.

#146 paulo on 07.20.17 at 1:34 pm

on the POA issue. these are very complicated and subject plenty of pitfalls and issues. having been there and done that for a couple of family members my advice is to firstly work with a solicitor when setting them up, become a expert in keeping very accurate records of any expenditures and decisions you make. this especially true if there are siblings involved. you would be very surprised at how many of these have gone wrong and destroyed family’s . remember you are taking on responsibilities to take care of a individual and your actions must be governed by impartial and proper due diligence,that are in the interest of the person that you representing.

#147 jess on 07.20.17 at 1:36 pm

Matryoshka Dolls
Secretary Clinton made the claim in 2014 and now Republican lawmakers are demanding that the Trump administration immediately investigate a Bermuda-based shell company with suspected Kremlin ties that is accused of working in the shadows to move millions of dollars to anti-fracking activists across the U.S.
===================================
Update to BEPS guidance on country-by-country reporting (19 Jul 2017)
Guidance on the Implementation of Country-by-Country Reporting:BEPS Action 13Updated July 2017
OECD Guidance on the Implementation of Country-by-Country Reporting – BEPS ACTION 13 (19 Jul 2017)
https://www.cchdaily.co.uk/update-beps-guidance-country-country-reporting

Country by country reporting to be extended to partnerships

Country by country reporting is to be extended to partnerships, HMRC has confirmed in a policy paper outlining amendments to The Taxes (Base Erosion and Profit Shifting) (country-by-country reporting) Regulations 2016

#148 Howard on 07.20.17 at 2:12 pm

#133 Bonhomme Carnaval on 07.20.17 at 12:00 pm
@ #102 Howard on 07.20.17 at 2:57 am

The two great Canadian fallacies :

1) University education = guaranteed ‘good’ job

2) Urban living is the only option

Lastly, Canada is a free country; you can come and go as you please.

——————————-

Another bizarre comment from you.

I never said university guarantees a good job, and I never said urban living was the only option.

Anyway you seem not to comprehend my point, so I will simplify my original comment :

Canadians have far fewer options than Americans. Ergo, rich foreigners bidding up single-family homes to obscene levels, and pricing out young native-born families in the few places in Canada available to large numbers of ambitious people, is many orders of magnitude more impactful than some Canadian retirees buying bungalows in seniors’ communities in Boca Raton.

Further to your last comment, I already made my decision when I expatriated myself to Paris three years ago.

#149 Howard on 07.20.17 at 2:14 pm

#132 Poorgirl on 07.20.17 at 11:56 am
#105 Here’s The Deal- Garth should ban you, you ageist creep!
#42 Mattl- Not much better, where is the respect, “old crust, old bird” etc..

Garth: Why is ageism so tolerated on this blog? Not that it matters, but for all we know the 82 year old woman was of sound mind and in a financial position to buy. So she may have overpaid a little. If she can afford it, who cares? Probably just wants to live out her remaining years in peace. Susan is just worried about her inheritance, IMHO.

———————————–

Baby Boomers loved ageism until they themselves started entering their dotage.

Whatever happened to “hope I die before I get old”?

#150 IHCTD9 on 07.20.17 at 2:27 pm

#120 MF on 07.20.17 at 8:43 am

Particularly impacted will be a large percentage of his idiot supporters: indebted college/university “educated” millennials in large urban centres.

Good.

MF

________________________________

I laugh and agree, but I also know these same financially insecure boot-licking schmucks will grow in number and vote the next Robin Hood birdbrain douchebag PM into power with a majority.

I used to think that voters could see the big picture, but I have now reassessed this and have come away with a different opinion. Voters here in Canada are mostly stupid partisan SJW sympathizers who don’t under stand money. Everywhere I look I see support for my new hypothesis.

#151 Jeff on 07.20.17 at 2:28 pm

Wonder how many Canucks are buying US real estate with HELOC’s?

#152 jess on 07.20.17 at 2:29 pm

the dark web shake down…today

The investigations

Europol has been supporting the investigation of criminal marketplaces on the Dark Web for a number of years. With the help of Bitdefender, an internet security company advising Europol’s European Cybercrime Centre (EC3), Europol provided Dutch authorities with an investigation lead into Hansa in 2016. Subsequent enquiries located the Hansa market infrastructure in the Netherlands, with follow-up investigations by the Dutch police leading to the arrest of its two administrators in Germany and the seizure of servers in the Netherlands, Germany and Lithuania. Europol and partner agencies in those countries supported the Dutch National Police to take over the Hansa marketplace on 20 June 2017 under Dutch judicial authorisation, facilitating the covert monitoring of criminal activities on the platform until it was shut down today, 20 July 2017. In the past few weeks, the Dutch Police collected valuable information on high value targets and delivery addresses for a large number of orders. Some 10 000 foreign addresses of Hansa market buyers were passed on to Europol.

In the meantime, an FBI and DEA-led operation, called Bayonet, was able to identify the creator and administrator of AlphaBay, a Canadian citizen living a luxurious life in Thailand. On 5 July 2017, the main suspect was arrested in Thailand and the site taken down. Millions of dollars worth of cryptocurrencies were frozen and seized. Servers were also seized in Canada and the Netherlands.” read more @
https://www.europol.europa.eu/newsroom/news/massive-blow-to-criminal-dark-web-activities-after-globally-coordinated-operation

https://qz.com/1030887/bitcoin-crash-cryptocurrencies-are-crashing-but-bitcoin-isnt-crashing-as-badly/

#153 Livin Large on 07.20.17 at 2:32 pm

Paulo, I’m not 100% what this translates in real English “otherwise she could have shagged out at a 5 star retirement facility to dawns early light and left a pile of cash…” But I think you’re saying she could live in a 5 star retirement facility for a lot less than the carrying costs of a condo. Clearly you have no concept at all of how much it costs to live in a retirement home. Unless it’s a full on nursing home (not a senior’s apartment) then it’s huge money.

The last time I check personally, a retirement facility 1 br apt with meals in Mississauga in 2013 started at $4,500 and if “heavy care” was required then start adding another couple of grand oer month. Those facilities are far from any sort of bargain. Now the Province does control the pricing for actual nursing home re

#154 IHCTD9 on 07.20.17 at 2:35 pm

#131 Wrk.dover on 07.20.17 at 11:52 am
#108 WUL on 07.20.17 at 7:24 am

If I had any brains, I would give my 87 year old mother a power of attorney to manage my financial affairs. Hands down, I would be better off.

Alas.

————————————————

Probably 95% of the country would be better off with a similar arrangement too.
_______

I know you jest – but you’re probably actually correct.

#155 James on 07.20.17 at 3:05 pm

#87 Tedfiftyfour on 07.19.17 at 11:48 pm

I think you have crossed a line Gartho. If this older lady choose to purchase the property to ensure she could live out her life where she had already lived for 14 years what’s the problem. At this age familiarity is more important than. The other option was a care home, a new rental apartment elsewhere in unfamiliar surroundings. If you don’t care what this lady wanted for herself and your only interested in what moneys left for others then you are on target. I suspect many older people don’t sign POA because of the fear of opinions like yours. I spend $10k renovating a bathroom for my Mother that she only need for a year or two but who cares. She was happy to have it for the short time she could use it.
……………………………………………………………………
Agreed, my parents are staying in their own home and said I they need care they will get an aid in until the bitter end. Nobody wants to end their years in a crappy environment where you have little or no control of anything. Asked my mother and father if they wanted to live with me, my brother or my sister and the answer was NO, NO. So as a family we said OK if you change your mind we are still good with it.
So leave Susan’s mother to do what she wants.

#156 Long-Time Lurker on 07.20.17 at 3:11 pm

Hey, Garth. Remember Reaganomics?

I thought this article would be interesting for current and former finance ministers.

http://www.paulcraigroberts.org/2017/07/17/supply-side-economics-theory-results/

SUPPLY-SIDE ECONOMICS, THEORY AND RESULTS
July 17, 2017

Supply-Side Economics Explained
Paul Craig Roberts

Supply-Side economics burst onto the economic policy scene in Washington, D.C., on September 21, 1975 in the Sunday Washington Star in an article I had written for US Representative Jack Kemp that provided a supply-side economic basis for his capital formation bill.

Subsequently, I generalized the supply-side approach when I realized that changes in marginal tax rates altered relative prices and could shift the aggregate supply side curve. Until that time, economists assumed that fiscal policy only impacted the aggregate demand curve.

Today 42 years after this article and 36 years after the passage of the Economic Recovery Tax Act that constituted the supply-side economic policy of President Reagan, there is still scant understanding of the economics that cured stagflation and enabled Reagan to pressure the Soviets to end the Cold War….

#157 James on 07.20.17 at 3:12 pm

#85 Smoking Man on 07.19.17 at 11:37 pm

https://youtu.be/XFkzRNyygfk
……………………………………………………………………..
Smoking Man becoming a little bitter or ostracized in your old age?
For there are two possible reactions to social ostracism – either a man emerges determined to be better, purer, and kindlier or he goes bad, challenges the world and does even worse things. The last is by far the commonest reaction to stigma.

#158 T on 07.20.17 at 3:31 pm

#128 crossbordershopper on 07.20.17 at 11:32 am

The other option is to have a very high homeless population. This would bring increased crime and health epidemics.

#159 Kayaker on 07.20.17 at 4:06 pm

Ah, some here are again missing the obvious about the old lady purchasing the condo. I’ve seen it time and time again in the insolvency Industry – older couple, holding a mortgage that on paper makes no sense “but” what do most of these people do – they hold an insurance policy on the mortgage that if they should die the property will be paid in full – so those who are likely in line for the inheritance will be sitting pretty with a fully paid off property to use as they please. We may say it looks crazy, I say it’s a very common practice.

#160 Livin Large on 07.20.17 at 4:11 pm

OK jess, other than you like to blog and type but don’t want to bother building your own following so hijack our “Fearless Leader’s” blog, how did that last comment have anything to do with Fearless Leader’s current post or any of the subsequent comments????

#161 n1tro on 07.20.17 at 5:07 pm

#144 Waiverless on 07.20.17 at 1:22 pm

Hate a changing world? Google residential schools and read about what happened. Really read it before you start spouting that garbage. I paid for all 3 of my degrees out of pocket but I don’t begrudge First Nations for anything – the world is more complicated than your simply glass house world view and it’s changing.. deal with it.

What the hell are you talking about? So Indian children were mistreated back in the day, so guilt money should be paid out forever?? Since you got you SJW outrage on, what about poor black people during slavery days? There are lots of different people that have been wronged in this lifetime yet choose to move on.

And the university point I made was that they are guaranteed spots regardless of their grades or scores which would make anyone jealous. I fully paid for my 2 degrees and certifications too…should we whip out appendages and measure now?

#162 Stan Broock on 07.20.17 at 5:26 pm

The progressive income tax was devised to “soak the rich.” In prac­tice it works as a barrier to upward mobility and discourages people from making their best effort. As a result, the tax system can make it more difficult for the average taxpayer to achieve financial in­dependence. It is this barrier to success that supply-side economists at­ tacked. The greater the extent of private success, the smaller the need for public assistance and the lower the burden of government. Supply-side economics is not anti-government. It simply accepts the fact that government is costly by nature and maintains that the greater the incen­tives and opportunities to earn income, the smaller will be the size and burden of government.

PCR

#163 n1tro on 07.20.17 at 5:32 pm

before I get slammed further…

when I say “move on”…I don’t mean “to forget” the past and repeat it.

#164 choptstix on 07.20.17 at 6:01 pm

East Vancouver Condo Buyers Spent 48% More Than Last Year
By Steve Saretsky – July 19, 2017
Demand For the East Side Explodes As Buyers Get Priced Out of the West
”As prices continue to surge, buyers are being squeezed further and further east. In fact, an incredible shift is underway, particularly amongst younger first time buyers who are desperate to enter the market. East has become the new West, as hipsters multiply on Main Street.”

http://vancitycondoguide.com/east-vancouver-condo-buyers-spent-48-more/

#165 Alberta Ed on 07.20.17 at 6:18 pm

It makes enormous sense to get an attorney to properly make out your will, POA, executor(s), etc. Costs a few hundred bucks usually, but well worth it IMHO.

#166 Reximus on 07.20.17 at 6:26 pm

East Vancouver Condo Buyers Spent 48% More Than Last Year
By Steve Saretsky – July 19, 2017
Demand For the East Side Explodes As Buyers Get Priced Out of the West

====

Happening in 416 condos too, not as crazy but def. happening

#167 Waiverless on 07.20.17 at 6:30 pm

#163 n1tro

“So Indian children were mistreated back in the day” – I’m going to assume a bit of naivete on your part if you think they were just mistreated. And hope you don’t really mean beatings, molestation and rapes throughout their formative years are just mistreatment.

Go read about residential schools before we continue this debate. I can understand your position – I had somewhat of an ambivalent move on attitude re: First Nations too until I educated myself – that and my work took me into many first nations communities throughout the interior and north. Easy to blame them until you really start appreciating the systematic barriers – easy pick the free education and no tax jazz as that means they’re getting a free ride and ignore everything else. Not a social justice warrior – just don’t live in a glass house anymore.

Let’s not even get started on the blacks in the states – not sure why you think they’ve ‘moved on’.

And since you’ve turned it into measuring contest… I have one more meaningless degree so I win

#168 smartalox on 07.20.17 at 6:36 pm

@Chopstix #164:

The surge of ‘East Side’ referred to in the link that you posted mirrors the shift in demand for East side detached properties five years ago. It also brings to mind the quote attributed to Karl Marx, about how history repeats itself:

first as tragedy, and later as farce!

#169 Reximus on 07.20.17 at 6:44 pm

Condo sellers are getting a ton for their units in TO and Van…question I have is….what are they doing next for their lodging needs?

#170 Nick on 07.20.17 at 8:32 pm

#145 Paulo:
So now based on no real facts, but some hyperactive bloggers conjecture we are allowed to be an expert on how others should spend their money; and worse: suggest that the purchaser is not of sound mind? Who says she didn’t buy this for cash? She owes her daughter zero inheritance and many people would rather live on their own volition rather than a “5-star” retirement home.

Tell you what if a 500k condo in Toronto is worth 250k in 18-months, I’ll buy you a drink. Hell, I’ll buy you dinner at a restaurant of your choice. If not, my pick. Deal?

#171 n1tro on 07.20.17 at 8:51 pm

#167 Waiverless

Please don’t assume I am dismissive of what native indians have went through. Along with the residential schooling, there are other crap that they had to deal with from the start. The original conversation started with the one comment about why should one group get free stuff while others don’t (similar to yesterday’s topic). The benefits in question revolved around payments for land displacements. You brought in residential schooling which is a related but separate issue that has been settled with a lump payment and an apology. My point was that along with the recurring payments, natives have other opportunities afforded to them but is mostly not used which is a shame and I admit I am jealous of those benefits.

I haven’t worked with native indians but it seems most of the news stories around natives are negative (poverty, crappy housing, gas stiffing, etc) despite the benefits provided thus my downward spiral comment.

As for slavery and moving on. Slavery was abolished in mid 1800. Yes, there was/is still discrimination till this day but should the decendents today be paid like the natives too? Up for debate. But if so, then shouldn’t the chinese slaves’ descendants be paid out also?? Last I checked, chinese americans aren’t lobbying for benefits and have indeed moved on.

#172 Old Guy2 on 07.20.17 at 10:10 pm

Garth, You might want to write a couple of paragraphs on personal directives some time. These are also very important, especially the person you assign them to
(not the daughter who thinks mom’s fine and is way smarter then the Doctor’s even after mom’s started running a bath then gone to bed flooding the basement twice, started cooking then turned on the TV till one of the neighbors called the fire department because of the smoke coming out the windows or reported her car stolen to the police three times describing a car she owned in the 1960’s)

#173 A Reply to #161 n1tro on 07.21.17 at 6:42 am

“I paid for all 3 of my degrees out of pocket….

“I fully paid for my 2 degrees and certifications too….”

Which is it? Two or three?

#174 David Hawke on 07.21.17 at 8:38 am

To add to #172’s suggestions do a piece on the importance of a POA holder who is also the executor a joint account signer on all bank accounts before dementia sets in as otherwise unscrupulous banks like the Green one will seize accounts upon death making a nightmare situation for the executor. This I know from experience, fortunately, I had followed my lawyer’s advice so just walked away let the bank keep the few dollars remaining.

#175 A New Record on 07.21.17 at 9:08 am

“… [T]here’s a large partisan gap in the numbers. Just 8% of Democrats approved of Trump’s job performance during the second quarter, but 85% of Republicans did. Approval ratings have become increasingly polarized in recent administrations, but the 77-point gap for Trump is a new record.

http://time.com/4868028/donald-trump-approval-rating/

#176 Susan on 07.21.17 at 3:59 pm

Hi Garth
Mom is fully competent medically and financially. No coercion. No lost marbles. Just plain stupidity and irrational behaviour. ( I am a mental health professional )
Interesting comments though! Thanks

#177 *wake me up when it's burst on 07.21.17 at 10:11 pm

Well we are turning into dust waiting, there’s no meaningful change for buyers in BC as of yet. It’s antagonizing to read the amount of babble going on about a crash in the lower mainland. Blah, blah, blah, yada, yada, yada.