Morons

Allan is amused at this pathetic blog. He read the post last week about that trash listing in hipster Toronto asking $750,000, and said, “it probably wouldn’t even warrant a Tweet here in Sydney, since sometime in 2016…”

The Australian is correct. We’re nuts, real estate-obsessed and terminally house horny. Aussies, however, are certifiably insane. They’re puffing up the greatest property gasbag on the planet, encouraged by a government just as whacked. According to the Americans, we’re all going down the drain soon.

Australians have destroyed affordable home ownership in an orgy of nation-wide speculation. Houses are generally sold at public, live auctions to investors encouraged by the tax system to buy at any price. So they do. Nowhere is the greater fool theory more prevalent, except that (so far) the fools have been the sellers.

Consider these sales over the past few months:

Sold for $1.6 million

This four-bedroom terrace home in a hip area with one ‘prized car space’ was described as ‘petrifying’ when it came to auction, after the upper level was burned to a crisp.

Sold for $2.3 million

This dilapidated character home sparked a 40-minute-long auction when it came to market for the first time in decades. Despite being uninhabitable, seven competing groups pushed the final price to $2,320,000.

Sold for $1.95 million

This three-bedroom cottage had been in the same family for 100 years when it was listed a few months ago. At auction it sold for $500,000 more than the asking price to a husband and wife team hoping to renovate.

“You mentioned in the past that auctions are more transparent than bully offers,” says Allen, referring to my criticism of blind auctions in which agents don’t reveal the amount of competing bids. “But the truth is, it’s probably the same thing. One you bid your life in blinding anxiety, the other you bid your life in public limelight – both pushing prices up, both back by the Bank of M&D, both putting multiple generations into financial chains, both to the benefit of the big 6 banks and big four (Australian banks) respectively.

“All I can say is, how did Canada and Australia end up like this? Truly regretful, like watching a train gently picking up speed on the downhill, so slowly that the conductor doesn’t realize that the momentum has surpassed his full braking capacity half a kilometer back. And, of course, you know about negative gearing… Sorry, just thought I’d comment after reading your blog post.”

Australian prices have increased 98%, on average, since the credit crisis. As in Vancouver and the Lower Mainland, Chinese buyers are often blamed, resulting in foreigners being forced to pay a tax up to 8% of the purchase price (they face 15% in YVR or the GTA). But the real culprit is bare-knuckles specking, which has made excessive and extreme risk-taking routine. For that you can thank the loopy Aussie tax laws.

Down under investors buy properties with extreme leverage fully expecting they’ll produce sustained, perhaps permanent, losses. In other words, there’s no way the purchase price can be justified by the income potential – rendering the cap rate irrelevant. Nobody cares. Real estate is routinely leased out for far less than the carrying costs.

Huh? How is this possible?

It’s called negative gearing. Investors can deduct unrestricted losses (even if the property is leased at a below-market level or never has an expectation of profit) from other sources of income, including employment, rents or investment returns. Negative gearing works because taxes drop by an amount equal to the investor’s effective marginal tax rate, multiplied by the excess of deductible expenses over investment income – that is, the tax loss on the property. So by purchasing money-losing bow-wow properties – which (everyone believes) always go up in value – Australians are able to wipe away the tax they’d otherwise have to pay on earned income. As a result, the demand for real estate is insatiable, with the kind of sales mentioned above (which are far from extreme examples).

Here’s the point: most people easily become morons, given the right conditions. It might be 2% mortgages which means debt’s almost free. Perhaps being able to raid your retirement savings for a tax-free downpayment or being gifted money to buy with. It could be negative gearing. Or maybe hearing realtors, media, bankers, your friends and your mom telling you houses always go up. The outcome is the same – real estate that people can’t actually afford and the extreme potential for a devastating correction.

More on that, soon.

232 comments ↓

#1 trexx on 01.21.18 at 2:38 pm

Was at an open house in Coquitlam yesterday.
Wife picked a gorgeous multipage, full color, listing brochure.
It was in Mandarin.
Asian realtor snatched it away and replaced it with a B&W one-page listing sheet in English.
Realtor rule # 1: know your market

#2 YK on 01.21.18 at 2:48 pm

First

#3 Stan Brooks on 01.21.18 at 2:55 pm

beware of false wealth where big valuations are based on small marginal volume and miscalculation of risk.

save what you can from the perceived ‘wealth’ while you still have a chance.

having a house in country with no economy will not help you.

#4 Larry on 01.21.18 at 2:56 pm

https://www.msn.com/en-ca/money/homeandproperty/hong-kong-is-so-expensive-that-architects-are-building-100-square-foot-%e2%80%98tube-homes%e2%80%99-made-from-concrete-water-pipes/ss-AAuXoSV?li=AAggNb9

The above link shows why foreign money is flowing to Canada & Australia. The fact that we have bidding wars amongst the locals is because they think, and for a good reason, that the foreign money supply will never end, and no Government intervention so far is good enough to stop it.

#5 Caninaus on 01.21.18 at 3:08 pm

Hi, I live in Queensland, born and raised in Ontario.

Garth, you forgot to discuss interest only mortgages and how much that has bloated the market.

Even in small country sh$t towns houses are ridiculously priced.

I have no idea where Aussies get all the money to buy these houses. I can only imagine they must be in debt as much, if not more.

I always tell my friends back home. Take the house you own, remove the basement, most likely the house will only have one floor and add at least $100 to $200 grand to the property. That’s what the average Aussie house is, small, overpriced and probably living beside a cashed up bogan.

#6 Vancouverite on 01.21.18 at 3:12 pm

DELETED

#7 Doug t on 01.21.18 at 3:19 pm

With Canadians carrying record amounts of debt combined with this massive housing bubble it doesn’t take much to create a catastrophic implosion

RATM

#8 joblo on 01.21.18 at 3:25 pm

Morons?
Excellent piece on Kanada’s Prime Moron:

http://ottawacitizen.com/news/local-news/macdougall-justin-trudeau-couldnt-survive-british-politics

#9 moneyDriven on 01.21.18 at 3:29 pm

All true

The problem is even with your most extreme case of correction, nyone who bought only a year or max two years prior to peak comes ahead.

Still waiting on any meaningful correction in Vancouver or at least a sign of it. A 30% correction puts the condo prices back in mod 2015 and house prices early 2015. And that is an max correction not yo mention the price in Vancouver are still increasing after foreign tax and your get out post.

What is your realistic correction in 3 year time?

#10 Entrepreneur on 01.21.18 at 3:33 pm

And it is not the middle class buying, too much. Real estate is a game but not for the worker.

Do we want that to ever happen again? I (we) signed the petition by Wong for housing measurements in bc.

Signed many petitions when Clark was in but ignored. This kind of thinking can go on so long when more and more people are dissatisfied with their leader.

#11 NoName on 01.21.18 at 3:39 pm

#130 I’m stupid on 01.21.18 at 1:52 pm
crime and this and that…

interesting thing about crime that is generally universal for everywhere is that 80% of clime is committed bu male between 16-36 yrs of age with “low education level”, i just quickly look at demographic table for usa that age group represent only 15-20 percent of population, and when you factor in education possible pool of crooks and criminals shrinks significantly. white collar crime is not crime unless you are very very unlucky or you pissed someone off lie MS nad CB.
i don’t think that canada is much more different than states.

#12 InvestorsFriend on 01.21.18 at 3:39 pm

Morons?

Here’s the point: most people easily become morons, given the right conditions.

**************************************
Someone once suggested: “Think about how stupid the average person is”. Now consider that half the people are stupider than average.

#13 InvestorsFriend on 01.21.18 at 3:41 pm

Mathematically challenged

Warren Buffett has written that there are only three kinds of people:

1. Those who can count, and

2. Those who can’t count.

#14 Go Jaguars! on 01.21.18 at 3:42 pm

Went to a few open houses in Toronto this weekend (under $1mill) and they were complete gong shows. Dozens of young couples and their mothers with cheques in hand. It’s as if B-20 and interest rate increases had zero effect. As long as the Bank of Mom can continue to finance first time buyers with large equity extractions via HELOCs, the party will continue.

#15 For those about to flop... on 01.21.18 at 3:44 pm

CONFIRMED PINK SNOW.

This one not my biggest scalp but I will report it mainly because it is a condo.

The details…

Paid 1.58m May 2016

Sold 1.6m September 2017

And so as you can see they got more than they paid for it but it wasn’t enough.

By the time you chuck in expenses and a little for opportunities lost this flip most likely cost them roughly 100k…

M43BC

Sold October 4 2017

902-1277 MELVILLE ST VANCOUVER. Paid 1.58 May 2016 ass 1.46

Feb 21:$1,650,000
Jul 26: $1,598,000
Change: – 52000.00 -3%

https://www.bcassessment.ca/Property/Info/RDAwMDA5RUtDSw==

https://www.zolo.ca/vancouver-real-estate/1277-melville-street/902

#16 Victor V on 01.21.18 at 3:54 pm

#13 Go Jaguars! on 01.21.18 at 3:42 pm
Went to a few open houses in Toronto this weekend (under $1mill) and they were complete gong shows. Dozens of young couples and their mothers with cheques in hand. It’s as if B-20 and interest rate increases had zero effect. As long as the Bank of Mom can continue to finance first time buyers with large equity extractions via HELOCs, the party will continue.

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

Good thing there are now websites available to consumers, so they are no longer misled by anonymous pumpers.

A paltry 77 sales of detached homes so far this month. Likely to be the lowest number in many years for January.

Try better next time.

https://toronto.listing.ca/detached-home-price-history.htm

#17 For those about to flop... on 01.21.18 at 3:56 pm

CONFIRMED PINK SNOW.

This house was featured on this blog a few times and they finally accepted their fate.

The details…

Paid 2.3 February 2016

Sold 2.29 December 2017( I have it recorded as an early September sale)

And so another one where the numbers look fairly innocuous but after opportunities lost and known expenses it is not unreasonable to say that they took a 160k hit…

M43BC

1427 19th Street, West Vancouver paid 2.3 February 2016 ass 2.60 2017 ask2.29 sold on September 3 2017

Apr 10:$2,588,000
May 11: $2,499,000
Change 89,000 -3%

1427 19th Street, West Vancouver

Apr 10:$2,588,000
Jun 28: $2,299,000
Change: – 289000.00 -11%

https://www.bcassessment.ca/Property/Info/QTAwMDAyOTlGWA==

https://www.zolo.ca/west-vancouver-real-estate/1427-19th-street

#18 Screwed Canadian Millenial on 01.21.18 at 4:01 pm

Australia is the beautiful paradise version of frozen hellhole Canada. That being said, they also have a huge problem with FOREIGN speculators. In fact they’re much closer to that country where a lot of the money comes from.

#19 Taxdude on 01.21.18 at 4:03 pm

In Canada, Individual investors, REITS, and partnerships can all write off rental losses against their other sources of income. Only corporations are prevented from applying rental property losses against other income.

What you Can’t do in Canada is take a loss on capital cost allowance (ie: tax depreciation) on rental property. I’m not sure how it’s done in Australia, but if you can take a loss from tax depreciation then I could see how that would increase demand. I’d love to deduct my non-cash depreciation against my other cash taxable income!

#20 Andrew Woburn on 01.21.18 at 4:04 pm

#84 acdel on 01.20.18 at 11:21 pm
#81 Andrew Woburn

Interesting views!
What are your perceptions or projections if NAFTA fails?

There have been so little comments to my previous posts regarding NAFTA that I am eager to hear others perspectives on this; especially if the U.S. decides that it is not worth it to them. What are your thoughts if the Americans leave to the implications of this country?
———————————-

I believe that the Trump crusade against NAFTA is driven by his deep racism more than economics. No credible economist believes the US will “win” by withdrawing.

In Trump’s world, we are “Norwegians” so there is less incentive to part company with Canada plus most of the US northern border states do considerable trade with us which provides jobs for his base.

I believe that Trump’s leverage with Capitol Hill is much reduced now that Republicans have tax reform. The financial elites have what they came for and don’t need the Donald or his base any more. If the wealthy who fund the Republicans are actually racist they will overlook their feelings for profit. There is no other explanation for the dysfunctional US immigration system than that the wealthy have prevented effective enforcement in order to have cheap labour. It is in no way racist to demand that a US employer ensure that potential hires are legally in the country or face a fine or jail. Enforcement is relatively simple and much cheaper than a wall but somehow never gets done.

The same elites who thwart immigration control own a lot of the capital in Mexico. There are thousands of truck movements per day just between Laredo and Nuevo Laredo. US investment in Canada is huge. It is hard to believe the elites will support cutting Canada or Mexico off or financially support any senator who advocates this.

If I am wrong and Mexico is forced out, then I believe there will be a new Canada-US trade agreement or a renovation of the one that preceded NAFTA. There is simply too much at stake for either party to walk away.

If I am wrong again, and somehow Trump gets the US to walk away from both trade partners, then we will have to recognize that the isolationist-nationalist US trend is a constant threat and develop new trade patterns. A Canada-Mexico agreement would be a good start. It will never replace the US market but there is a whole world out there we are not reaching. A globalist Canada would probably attract a lot of investment from businessmen in an isolationist US.

The last thing to remember is we did a lot of trade with the US before NAFTA even with tariffs and there is no reason to believe we won’t no matter what. Geographically, most of Canada’s population area is simply an extension of the US north/south truck routes. The marginal cost of producing and delivering to Canada is low. Losing 35 million customers in Canada is like losing California. Ain’t happening.

#21 Smoking Man. on 01.21.18 at 4:05 pm

Whoa!!!

Toronto detachted listing jump 240% this is going to get ugly.

#22 Andrew Woburn on 01.21.18 at 4:14 pm

It is hard for Canadians not to be swept up by America’s view of itself but if we are too keep our heads up in a fast changing trade world, we need some perspective.

“It turns out that the global system is underpinned by more powerful forces than either the whims of America’s president or even the country’s enormous military and economic weight. In fact, America’s once-dominant position in the world has been steadily declining since the 1970s when Japan’s rise and Europe’s consolidation into the EU brought two new centers of gravity, followed of course by China and now India, as well as a revived Russia, as geostrategic anchors. All of them are intensifying their relations with each other as well as with other regional powers from Saudi Arabia to Brazil—no matter what edicts are pronounced in Washington. American officials speak about accommodating China’s rise as if it were still up to them. But our collective international society wants only one thing: More connectivity among its members. Globalization has turned the world from a pyramid with America at the top into a spiderweb. To make a celestial analogy, geopolitical order is not a solar system with one star in the center around which all planets rotate. It is more like a constellation, a pattern of bright stars bound by mutual gravity.”

– Get Over Yourself, America. The rest of the world couldn’t care less about Donald Trump.

https://www.politico.com/magazine/story/2018/01/19/get-over-yourself-america-216478

#23 Stan Brooks on 01.21.18 at 4:18 pm

#7 joblo on 01.21.18 at 3:25 pm
Morons?
Excellent piece on Kanada’s Prime Moron:

http://ottawacitizen.com/news/local-news/macdougall-justin-trudeau-couldnt-survive-british-politics

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

It is a collective insanity.

A made up poster boy with very limited intellectual capabilities and very unimpressive resume rises to power with the help of rich elite donors and the prestutute press.

Note that his agenda is pretty much made up – escalation of non existing issues into the spotlight with the goal to prove to be a hero fighting for justice.

if injustice does not exists, it has to be invented.
everyone who disagrees is an enemy.

So we are here, living an artificial insane life in la-la cuckoo land sliding down on the sleeper slope to the big deep doo doo.

One really needs a strong drink like Smoking Man and a way to somehow detach from this insanity in order to appreciate what normal is.

It is very depressing to be ruled by idiots far inferior to you and to know that there is nothing you can do in order to influence your destiny.

#24 Stan Brooks on 01.21.18 at 4:22 pm

As for Poloz and his verbal diarrhea:

I am absolutely stunned by his complete lack of understanding what is to be a central banker.

It seems he likes to move his hands around in gestures totally inappropriate and unrelated to the topic just to show competency, complete farce.

But hey this is what we deserve I guess.

beware ofthe poloz peso. hedge accordingly.

#25 Screwed Canadian Millenial on 01.21.18 at 4:26 pm

I should have moved to Australia 10 years ago. I really regret not doing so. Much better country than Canada. Higher wages, much better weather, incredible women.

Anyways, they have a much better system for how they sell homes. I remember watching this on CBC. They have a public, transparent auction style system. Much better than the secretive, backroom deal, SHYSTER system we have here.

Here’s how to buy a home in Australia: Should Canada follow its lead?
http://www.cbc.ca/news/business/here-s-how-to-buy-a-home-in-australia-should-canada-follow-its-lead-1.3826727

#26 Screwed Canadian Millenial on 01.21.18 at 4:28 pm

US Iraq War vet Tammy Duckworth ripped Trump a new one on the floor of the Senate yesterday.

Duckworth slams Trump: I won’t be lectured on military needs by a ‘five-deferment draft dodger’
http://thehill.com/homenews/senate/369960-dem-slams-trump-i-wont-be-lectured-on-military-needs-by-a-five-deferment

Ouch. Brutal. She called him Cadet Bone Spurs. Great nickname.

The Swamp Turtle had the nerve to block a Democratic motion to make sure the military gets paid during the TrumpShutdown. The Republicans just have no shame.

Senator McConnell Objects to Military Pay Protection Senator McConnell Objects to Military Pay Protection
https://www.c-span.org/video/?c4710181/senator-mcconnell-objects-military-pay-protection

#27 Toronto Tim on 01.21.18 at 4:28 pm

Garth,

Without any further changes, what this indicates is that Toronto still has a lot of room to run to get anywhere near Australia levels.

In Toronto, the number of high earning two income families is mind blowing. Private clubs have multi year wait lists. Top golf clubs have 10 year wait lists.

The accounting firms have promoted more partners this year in Toronto then any other year. Same goes for consulting firms. The banks and insurance companies are producing enormous bonuses and stock based compensation for their staff.

And many are awaiting the largest intragenerational wealth transfer as boomers pass on wealth to their children, well before they pass.

I think you are providing bad advice.

#28 Matt on 01.21.18 at 4:29 pm

Very similar to New Zealand according to my Uncle. “You could write that article and just replace every reference to Australia with NZ. Auckland is now the eighth most unaffordable city in the world.
New Zealanders are obsessed with real estate investing but the new Labour government is now starting to introduce laws which they hope will make housing more affordable. The first law is that foreigners can only buy sections for building new homes i.e., they cannot buy an existing dwelling. The second new law they will introduce shortly is that you have to own any property for five years in order to avoid paying tax on any capital gain.”

#29 For those about to flop... on 01.21.18 at 4:34 pm

CONFIRMED PINK SNOW.

This case in Burnaby is a good showcase of part of the reason why I do what I do.

This house sold in the first half of August and the database has just been updated now.

In a rising market it wasn’t such a big deal but now that things have turned there is a lot of collateral damage.

I have cases waiting to be presented earlier than this one June /July 2016.

Anyway ,let’s deal with this case.

The details…

Paid 2.1 June 2016

Sold 1.93 August 2017

And so a roughly 8% loss before expenses and opportunities lost and so if we call it a nice and even 15% then these guys are out of pocket around 315k.

The shepherd didn’t do a good job of guiding these guys…

M43BC

4735 Shepherd Street, Burnaby paid 2.1 June 2016ass 1.74 2017sold on August 10

May 2:$2,388,000
Jul 10: $2,188,000
Change: – 200000.00 -8%

https://www.bcassessment.ca/Property/Info/QTAwMDAzVzczUA==

https://www.zolo.ca/burnaby-real-estate/4735-shepherd-street

#30 Zapstrap on 01.21.18 at 4:34 pm

#5 Caninaus on 01.21.18 at 3:08 pm

Now don’t be leaving us cheeseheads wondering … what’s a cashed up bogan? Eh.

#31 Lost in Space again on 01.21.18 at 4:36 pm

investors can write off expenses associated with owning a property from the revenue it produces, but not from wages.

Wow didn’t know that always thought that was the reason no one cared if it made money or not, guess I was wrong.

#32 jess on 01.21.18 at 4:43 pm

Looks like Iran same issue
lure :25% interest on your savings (ponzi?)
40% bad loans (nyt)

Caspian financials and Arman financial institutions have made headlines in Iran after they failed to return investors’ funds. This comes as Iranian financial institutions have failed to pay back deposits of investors. In a move that is considered an evidence these institutions have gone bankrupt. Economic …
How Corruption and Cronyism in Banking Fueled Iran’s Protests – The …
https://www.nytimes.com/2018/01/20/world/…/iran-protests-corruption-banks.html
1 day ago – TEHRAN — At 25 percent, the interest rate paid on a savings account at the Caspian Finance and Credit Institution in Tehran was a better return than … released a document listing the Top 20 debtors who had failed to meet payment deadlines for Sarmayeh Bank, which is co-owned by a pension fund for …

#33 Screwed Canadian Millenial on 01.21.18 at 4:44 pm

DELETED. Don’t try that again or you will be gone forever.

#34 Periscope on 01.21.18 at 4:48 pm

Periscope

Firstly, what you are doing for your 2 adopted children is honourable.

Drug abuse has been present in society ever since drugs were discovered. The “new Canada” isn’t the reason your children had to endure such hard circumstances. In the same way I can’t blame domestic violence is associated to the “old Canada” you remember. There will always be people that do bad things. My point is that building a society that’s tolerant is important.

What if your son or daughter tell you they’re gay? Would you like society to treat them differently? Would you stop loving them? Should they be cast aside like monsters?

In reply, sorry for calling you stupid, your tag may it too tempting and I should have resisted.

The Bioparents of my son and daughter have gone on to repeat the mistake 8 more times. In the old Canada the bio parents would have been jailed or sterilized. But since the charter of rights that can’t happen anymore, and the trail of human misery grows. I am doing what I can to fight it. Rent the movie Idiocracy, both funny and scary.

As for your comments around homosexuality. This is frequently used as a tool to shut down debate on more substantive issues. Most people, myself included are live and let live. Why on earth we have to worry about what adult do behind closed doors with there private bits is beyond me. Most parents love their children unconditionally. The only way I would be angry with them is if they were to abandon their spouse or children to go find themselves or some other new age Canada crap. They’d find themselves without an inheritance if they were ever stupid enough to go there. Trust me, the price would be great.

My son loves hockey. Today a much larger kid kept slashing him, and hitting him. I knew he was getting mad, and saw that he asked the kid to stop. Eventually, one of my sons team mates cross checked the other kid, and told him to leave my son alone. The other kid left my son alone for the rest of the game, the old Canada is still alive.

#35 Stan Brooks on 01.21.18 at 4:51 pm

#19 Toronto Tim on 01.21.18 at 4:28 pm
Garth,

Without any further changes, what this indicates is that Toronto still has a lot of room to run to get anywhere near Australia levels.

In Toronto, the number of high earning two income families is mind blowing. Private clubs have multi year wait lists. Top golf clubs have 10 year wait lists.

The accounting firms have promoted more partners this year in Toronto then any other year. Same goes for consulting firms. The banks and insurance companies are producing enormous bonuses and stock based compensation for their staff.

And many are awaiting the largest intragenerational wealth transfer as boomers pass on wealth to their children, well before they pass.

I think you are providing bad advice.

—————————–

Define high earning.

for current house prices in Toronto it has to be 450 k + per household per year.

If is ts 150k prices should be adjusted accordingly.

the whole economy is based on credit.

The owners of this place want their money back and their profits.

we are screwed.

capishe?

#36 Caninaus on 01.21.18 at 4:54 pm

SCM, Canada is a much better country. The people are nicer, coffee doesn’t cost $5.00, bacon and eggs doesn’t cost $20, vehicles are cheaper in Canada. You have obviously never had the experience of living beside a bogan. It will make your life intolerable. There is no empathy in Australia, everyone looks out for themselves and the all mighty dollar is the most important thing.

Hey, it’s Wednesday night and I live near two young families, let’s crank the music invite my friends over, get drunk, tell the cops to F off. I’ve moved four times and every time I end up near someone like this and these are decent family houses/suburbs. Never experienced this in Canada.

#37 Lost...but not leased on 01.21.18 at 4:57 pm

FLOP….

I hear ya re SFH….

IMHO, the multi- family condo market needs to be tracked and exposed.

I’ve stated ad nauseum that SFH sales data is being used to funnel parties into multi family units…

SFH can be deemed a quasi-quantifiable asset…(aka other than virgin land re-zoned,its basically whether an existing property is a tear down or not )……whereas multi family can be thrust upon the market in orders of magnitude.

For those unaware…Metro Vancouver has a regional growth strategy in which 20+ local gov’ts no longer had individual 5 year OCP’s , Metro Vancouver preplanned for several decades…aka a mega City concept.

Thus…given properties have higher and best use designations that benefit local gov’t tax revenue…but if manifested at any time individually or en masse can throw 100’s of not 1000’s of units onto the market.

This is THE ticking time bomb…

#38 For those about to flop... on 01.21.18 at 5:02 pm

CONFIRMED PINK SNOW.

I could pump out cases like this one all day long if they updated the database.

Got slightly more than they paid but still took a decent hit.

The details…

Paid 1.63 July 2016

Sold 1.65 November 2017

And so by now there are thousands of people like these guys, made the sale took a loss ,perhaps not a fatal one but perhaps enough for them to sit on their hands for a while and see what happens in the next year or two.

After known expenses these guys didn’t have to go to weight watchers to lose 100k for their New Years resolution…

M43BC

Sold on November 19 2017

1880 Riverside Dr North Vancouver paid 1.63 July 2016 ass 1.69 2017

May 2: 1.75

November 9 : 1.65

Change :99,112 6%

https://www.bcassessment.ca/Property/Info/QTAwMDAyOEs2Ug==

https://www.zolo.ca/north-vancouver-real-estate/1880-riverside-drive

#39 arun on 01.21.18 at 5:05 pm

Canadians are amateurs compared to Aussies in debt binge. reader from down under hoping that this insanity would end soon in Canada, Australia and new zealand.

#40 Screwed Canadian Millenial on 01.21.18 at 5:07 pm

It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

#41 For those about to flop... on 01.21.18 at 5:08 pm

#31 Lost…but not leased on 01.21.18 at 4:57 pm
FLOP….

I hear ya re SFH….

IMHO, the multi- family condo market needs to be tracked and exposed.

I’ve stated ad nauseum that SFH sales data is being used to funnel parties into multi family units…

SFH can be deemed a quasi-quantifiable asset…(aka other than virgin land re-zoned,its basically whether an existing property is a tear down or not )……whereas multi family can be thrust upon the market in orders of magnitude.

For those unaware…Metro Vancouver has a regional growth strategy in which 20+ local gov’ts no longer had individual 5 year OCP’s , Metro Vancouver preplanned for several decades…aka a mega City concept.

Thus…given properties have higher and best use designations that benefit local gov’t tax revenue…but if manifested at any time individually or en masse can throw 100’s of not 1000’s of units onto the market.

This is THE ticking time bomb…

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

Hey Lost,I have already exposed condo losses on this very site,perhaps before you joined us?

One building in a complex of three I showed 5 or 6 losses in just one building.

I tugged on a thread and ended up with enough wool for a sweater…

M43BC

#42 Hotdogs from Heaven on 01.21.18 at 5:13 pm

#13 Go Jaguars! on 01.21.18 at 3:42 pm

Went to a few open houses in Toronto this weekend (under $1mill) and they were complete gong shows. Dozens of young couples and their mothers with cheques in hand. It’s as if B-20 and interest rate increases had zero effect. As long as the Bank of Mom can continue to finance first time buyers with large equity extractions via HELOCs, the party will continue.
——————————————-
Provide a few MLS links to these places please so we can see what people are allegedly going nuts for.

#43 Penny Henny on 01.21.18 at 5:14 pm

#19 Matt on 01.21.18 at 4:29 pm
Very similar to New Zealand according to my Uncle. “You could write that article and just replace every reference to Australia with NZ. Auckland is now the eighth most unaffordable city in the world.

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

NZ is where the ultra rich buy just in case there is nuclear war

#44 Screwed Canadian Millenial on 01.21.18 at 5:15 pm

BANNED

#45 Screwed Canadian Millenial on 01.21.18 at 5:16 pm

That wasn’t my intent at all Garth. I apologize.

Too late. – Garth

#46 Screwed Canadian Millenial on 01.21.18 at 5:19 pm

BANNED

#47 Capt. Serious on 01.21.18 at 5:22 pm

The Patriots are losing and SCM is gone? What a day.

#48 Not Screwed Millennial on 01.21.18 at 5:24 pm

Getting really tired of Screwed Canadian Millennial’s whining and complaining. Sounds like a real loser. If you hate Canada so much gtfo fool. I’m also a millennial and as annoying as some things are about this country I work hard to get ahead. This chump has such a chip on their shoulder. You think you’re entitled to stuff? Work for it. Hope Garth boots your sorry ass off this site.

#49 Not Screwed Millennial on 01.21.18 at 5:24 pm

The Gods have heard my prayer.

#50 Cristian on 01.21.18 at 5:25 pm

“how did Canada and Australia end up like this?”

A lot of it has to do with the British heritage. There is a huge difference between Brits and the other (civilized, meaning non-Eastern; Disclaimer: I come from Eastern Europe so I know what I am talking about) Europeans in terms of house ownership. Where as people often prefer to rent and have freedom of movement in continental Europe countries, Brits love taking risks in order to own and eventually gain from the transaction.
This, evidently, was passed on to the emigrants who populated Canada and Australia.
Plus the fact that Canada and Australia have not (yet) suffered financially like the US 9 years ago.

#51 Keith in Rio on 01.21.18 at 5:26 pm

Thing is…………the AUD and CAD are almost 1-1…………which really gives you an accurate perspective when looking at those Aussie shacks, no ?

#52 Banned Canadian Millenial on 01.21.18 at 5:26 pm

BANNED

#53 Millenial on 01.21.18 at 5:28 pm

medical mozzarella… lol

#54 mark on 01.21.18 at 5:31 pm

The other point missed in Australia is interest only loans. Last year 40% of the Australian banks’ loan books were interest only. Property investors use them because they’re banking on the capital gains and aren’t interested in repaying the principal and occupiers (first home buyers usually) use them because they’re desperate just to hook a property and hope their income increases before the rate resets to P&I.

Banks at the behest of the government are now being reigned in on interest only and investors are squealing because they’re being shifted to P&I – who would have thought you’d have to pay back the principal! So now you’ve got a bunch of loans resetting over the next few years and the investors are scrambling to 2nd tier lenders who finance these clowns with ‘safe’ mortgage funds marketed to old people who want to avoid risk, but don’t realise they’re not really in a bank deposit product.

#55 akashic record on 01.21.18 at 5:33 pm

#113 Periscope

Thank you for the kindness of your heart for walking the walk for other human beings.

https://www.youtube.com/watch?v=igsoFGv-Dw0&index=8&list=RDcziR5h1qCp0

#56 JSquared on 01.21.18 at 5:34 pm

Round of applause for Garth everyone! SCM banned, finally. Annoying, petulant whiner who obviously has deep-seated need for attention. Good luck in the real world kiddo, you’re gonna need it.

#57 Penny Henny on 01.21.18 at 5:35 pm

Garth. I love this site. I learn something new every day.
/////
#37 Caninaus on 01.21.18 at 4:54 pm
SCM, Canada is a much better country. The people are nicer, coffee doesn’t cost $5.00, bacon and eggs doesn’t cost $20, vehicles are cheaper in Canada. You have obviously never had the experience of living beside a bogan.
////////
bogan
A fascinating beast. The majority of the species are hideously repugnant and unintelligent, and yet they manage to breed in ever-increasing numbers and populate an area known as the outer west. It is quite common to find five or six offspring in each family group, often with a different father for each new baby.
Their habitat consists of a weatherboard or brick-veneer dwelling and is characterised by an early-model Holden or Ford in the driveway surrounded by a group of males discussing why the carby is stuffed and the results of last night’s footy (a primitive gladiator-like spectator sport enjoyed by most bogans).
The female of the species, while smaller in stature, is far more loud and aggressive than the male. While the males tend to be very friendly and congregate with other males, the females spend most of their time in supermarkets and shopping malls, using a shrill high-pitched call to discipline their children and contact other females.
Males and females rarely interact socially except during breeding season, which is otherwise known as Friday night. During this time, females are allowed to enter the male-dominated area known as “the pub” and display their impressive coloured plumage to a prospective mate.
Herein lies an intersting phenomenon. Males will often fight over a particularly attractive female and she will mate with only one male, while some less attractive females have been known to have several partners simultaneously.

#58 Dan.t on 01.21.18 at 5:39 pm

I really don’t understand the need to drop like 2mil on a decrepit pos tear down but knowing the investing public’s mindset…not at all surprised.

People want crap when it cool- pumped in the news- peer respect- “ oh wow you won the auction for that 2.3 mil, sick, you are so awesome “ as long as prices don’t go down to are a hero… with bank of Mom bank rolling you,.. buy no one needs to know about that.. shh.

My opinion is to buy stuff no one wants, fundamentally sound, low, not cool… then sell it to the public when it becomes the new cool fad. Harder said than done but doable.

Actually, forget that, just watch money talk, listen to experts on real estate sponsored news and buy stuff the media wants you to buy – at least that way you are safe and all good with your buddies. On second thought a burned out shack is not a bad investment- in B.C. that is gold.

#59 Happy Housing Crash Everyone! on 01.21.18 at 5:47 pm

Pure fiction. You SHYSTERS are true POGarbage. Its better to tell a big lie then a small one. Lol. Nothing is selling you Stupid SHYSTER. Keep writing fiction like a dirty SHYSTER. I cant wait for this months terrible numbers.

Go Jaguars! on 01.21.18 at 3:42 pm
Went to a few open houses in Toronto this weekend (under $1mill) and they were complete gong shows. Dozens of young couples and their mothers with cheques in hand. It’s as if B-20 and interest rate increases had zero effect. As long as the Bank of Mom can continue to finance first time buyers with large equity extractions via HELOCs, the party will continue.

#60 PastThePeak on 01.21.18 at 5:52 pm

The dichotomy in the Canadian landscape is certainly interesting. In BC and GTA, it seems that the drive to buy a house/unit at any cost is common place, but this is not nearly the same in most of the rest of the country.

In a few years will a detached house be average $2M in GTA and $600k in Montreal or Ottawa, and even less elsewhere?

#61 Sean on 01.21.18 at 5:54 pm

Rental losses can be deducted from other income (employment income) as long as there’s an expectation of profit from the rental income source. In the case of these Australian examples, where investment property owners know they will make income losses every year, the CRA (and courts) would not allow the losses to be claimed against employment income in Canada.

http://www.segalllp.com/2017/03/09/expectation-becomes-intention/

#62 A Yank in BC on 01.21.18 at 5:54 pm

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

Hallelujah. Our prayers answered.

#63 Madcat on 01.21.18 at 6:03 pm

I’m surprised anybody wants to stay in Australia!! It’s full of creepy creatures!!!

Cat Funny GIF from Cat GIFs

#64 Lost...but not leased on 01.21.18 at 6:07 pm

Flop…

Sorry …..maybe my bad…..but all I see is SFH data on your posts.

Regardless….I had posted previously on my role as Executor for my late father’s estate.

He passed on in 2015, market value was “X”….I sold his SFH in Oct. 2017 for approx. 2X. I do not claim any rocket science…the market had jumped than much.

His home was in an approx. 100 + lot subdivision……with an OCP that indicated multi -family.

We had been referred to an EXCELLENT realtor and we sold at a very fair price. aka no regrets.

Since then?

There are some listings…..but it is fair to say the spekkers market is dead.

I can smell the sharpened pencils…given our realtor and myself had crunched some numbers to determine what a higher and best use valuation should be…..aka what a developer could pay after the soft costs were tallied and tabulated.

As it stands…we set the benchmark..other listings in the neighbourhood are stagnant….again base on spekkers are gone ….only sharp pencils will prevail.

#65 Coulda, woulda, shoulda on 01.21.18 at 6:08 pm

#25 Screwed Canadian Millenial on 01.21.18 at 4:26 pm
I should have moved to Australia 10 years ago. I really regret not doing so. Much better country than Canada. Higher wages, much better weather, incredible women.

Anyways, they have a much better system for how they sell homes. I remember watching this on CBC. They have a public, transparent auction style system. Much better than the secretive, backroom deal, SHYSTER system we have here.

Here’s how to buy a home in Australia: Should Canada follow its lead?
http://www.cbc.ca/news/business/here-s-how-to-buy-a-home-in-australia-should-canada-follow-its-lead-1.3826727

——-

Coulda, woulda, shoulda. The mantra of the terminal loser. What a wasted life you have.

#66 thankful for no scm on 01.21.18 at 6:08 pm

Garth,

THANK YOU for finally purging SCM; I will start reading the comments section again.

#67 Dave on 01.21.18 at 6:08 pm

#41,45,46 & 47 SCM banned.
Thank Christ.

#68 theoryAndPractice on 01.21.18 at 6:10 pm

#27 Toronto Tim on 01.21.18 at 4:28 pm

“… In Toronto, the number of high earning two income families is mind blowing. Private clubs have multi year wait lists. Top golf clubs have 10 year wait lists… ”

Q1- What is the definition of high earnings ?

Q2- What is the # of families in this category and specify the source of this information ?

“…The accounting firms have promoted more partners this year in Toronto then any other year…. ”

Q4- What are the the numbers this year comparison to any other year and how did you get to this information ?

“…..The banks and insurance companies are producing enormous bonuses and stock based compensation for their staff.”

Q5- What is the definition of ‘enormous bonus’ you mentioned above ?

and finally

How all of the above has any correlation to your conclusion ?

#69 -=jwk=- on 01.21.18 at 6:12 pm

A made up poster boy with very limited intellectual capabilities and very unimpressive resume rises to power with the help of rich elite donors and the prestutute press.

That was Harper. We have a new guy now. Someone who actually had a job before politics.

#70 Danny on 01.21.18 at 6:12 pm

Garth….another eye opener.

Very interesting…using obviously bad real estate….or investment…to get out of paying taxes.

Now I better understand how pathetic Trump…the one who speaks about himself as he is another person and purposely makes some of his businesses fail to declare bankruptcy and also reduce his taxes.

Nice….take money out of businesses….leave no trail…then declare bankruptcy….and investors get screwed.

Sounds like organized criminal activity….but legal because bankruptcy is allowed even if it was planned for in the beginning.

Guess Speculators in Australia are playing somewhat of a similar game.

With Trump…probably more money under the table than on top. Good at hiding his trails of money flowing in and out of America to his many very very very rich similar dudes wearing hats and dresses. What a pro!

#71 Penny Henny on 01.21.18 at 6:12 pm

No crazy prices in small town Australia.
This place is on the same street as my cuz.

https://www.realestate.com.au/property-house-vic-morwell-125459930

#72 Long Branch Apprentice on 01.21.18 at 6:18 pm

Go Eagles!

Wife and I have a decent nut saved up, planning on buying in 3-5 yrs and building a quality R2000 with geothermal heating to save on heating bills.

Given that this will be in a rural-ish area, would it make sense to liquidate what we have saved at that point, buy the house outright, then borrow to pay back our investments? I think Garth has covered this awhile back and mentioned the interest would be tax deductible.

Can anyone knowledgable weight in or are we distracted by SCM’s antics?

#73 Linda on 01.21.18 at 6:19 pm

I’d wondered why Aussie homes were so insanely expensive but now that ‘negative gearing’ has been explained, the mystery is solved. Though I’m not quite sure what that says about the Aussie tax system, in that folks are willing to indenture themselves in debt for literal generations just so they can write off the tax they’d otherwise pay. I’m just presuming that Aussies would be termed ‘terminally tax phobic’:)

#74 CANADA IS A SHITHOLE COUNTRY on 01.21.18 at 6:20 pm

Looks like OZ is a shithole country too!!

Except the excrement (i.e. Deplorables) circles the drain there in the opposite direction.

#75 Go Jaguars! on 01.21.18 at 6:21 pm

#43 Hotdogs from Heaven

11 Empire Ave – E4024139
44 Sandford – E4023389
204 Parkmount – E4021613
223 Wallace Ave – W4021616

#16 Victor V

Many first-time buyers are oblivious to the fact that prices are softening. Their agents and their parents are pushing them hard to get into the market. When the parents offering huge sums of “free” money, it’s hard to say no. It’s a sad reality. Pumping real-estate in the current market conditions should be criminalized.

#76 Penny Henny on 01.21.18 at 6:21 pm

#41 Screwed Canadian Millenial on 01.21.18 at 5:07 pm
It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth
/////////////////

Tonight’s comments will be about 50+ higher with everyone saying Thank You Garth.
Going forward comments will be down 25 per day because SCM is no longer here.
I agree with your decision Garth. You gave SCM enough leash. Maybe SCM will come to realize that they were spending way too much time on this blog. Back to snapchat or whatever.

#77 Terry on 01.21.18 at 6:26 pm

In my opinion, I think all the Trump bashers in this blogs comments section are very misinformed on Trumps true character. We should all have more respect for Mr. Trump since this is the 45th President of the United States we are talking about here.

#78 For those about to flop... on 01.21.18 at 6:27 pm

I seen a couple of guys talking about bikes the other day and so let’s see if I can you a bicycle analogy to describe what I have seen going on in Vancouver real estate.

The Vancouver bike was in great running condition in late 2015/ early 2016 and the rider was just right for the bike.

During Spring 2016 the rider put on a bit of weight and put a couple of fractures on some teeth in the chain ring after pushing the foot down on the pedal too hard when not properly in gear.

When the owner after going away for the summer pulled the bike back out of storage in Fall 2016 with the same weight on it sheered a couple of cogs off the chain ring.

The owner noticed this but didn’t think anything of it as the chain still goes around with the occasional clunk.

The bike works but it is not running as smoothly as before.

That owner decided to get a new bike as after 2017 grew sick of the annoyance of a slightly more bumpy ride.

The owner put that bike on the market but is being surprised that potential buyers are pointing out this fault and want a slight discount when for all intents and purposes the bike still works as designed by the people that made it…

M43BC

#79 Dave on 01.21.18 at 6:32 pm

Here’s the visual on SCM’s banning:
https://imgflip.com/i/233tfu

“Every loser has a reason to feel sorry for himself.”
-The Boss

#80 Ardy on 01.21.18 at 6:32 pm

Screwed Canadian Millenial on 01.21.18 at 5:07 pm
It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

….
Hallelujah…..

#81 millmech on 01.21.18 at 6:32 pm

Had to go out to Abbotsford today, stopped by some open houses as I had a bit of time to kill before lunch. There was next to no foot traffic but that could be because of the weather, I thought with everyone selling in Vancouver and buying up out there I would have expected more people.
1870 JACKSON STREET, Abbotsford, BC, V2S 2Z9
MLS® # R2232815
2075 HOLLYBERRY COURT, Abbotsford, BC, V2S 3X3
MLS® # R2232701
213-33870 FERN STREET, Abbotsford, BC, V2S 6C3
MLS® # R2231970
302-33708 KING ROAD, Abbotsford, BC, V2S 8C6
MLS® # R2233232
13-3902 LATIMER STREET, Abbotsford, BC, V2S 7L5
MLS® # R2232349

#82 Zhang Xiaolei on 01.21.18 at 6:33 pm

Zhang Xiaolei arrested. 200 MILLION, 200 MILLION, 200 MILLION CHINESE INVESTORS LOSE EVERYTHING !!!!!

For up to 200 millions ordinary Chinese, dreams of overnight riches became a nightmare when the founder of the site, Zhang Xiaolei, was placed in police custody after turning himself in just before the start of the new year.

https://www.zerohedge.com/news/2018-01-21/200-million-investors-may-have-lost-everything-largest-ponzi-scheme-chinas-history

#83 Zhang Xiaolei on 01.21.18 at 6:35 pm

He has been accused of illegally raising 70 billion yuan or some $11 billion, according to sources close to the Chinese authorities and reported in the mainland media. If those allegations are true, this would be the largest online investment fraud in China’s history.

#84 Paul on 01.21.18 at 6:35 pm

Garth gave SCM a chance a warning if you may.
But he just couldn’t shut up and leave it alone and stay away for the rest of the night, hopefully it’s a lesson learned for him.

#85 jess on 01.21.18 at 6:35 pm

Thursday, January 18, 2018
HSBC Holdings Plc Agrees to Pay More Than $100 Million to Resolve Fraud Charges

United Kingdom-based global financial services company HSBC Holdings plc (HSBC) entered into a deferred prosecution agreement (DPA) and agreed to pay a $63.1 million criminal penalty and $38.4 million in disgorgement and restitution to resolve charges that it engaged in a scheme to defraud two bank clients through a multi-million dollar scheme commonly referred to as “front-running.” The DPA, which was filed in connection with a two-count criminal information charging wire fraud in the United States District Court for the Eastern District of New York, is pending review by the Court.

https://www.justice.gov/opa/pr/hsbc-holdings-plc-agrees-pay-more-100-million-resolve-fraud-charges

#86 bellend on 01.21.18 at 6:41 pm

this skippystani can confirm all that from Garth.

add to the mess a generous 50% capital gains tax rebate after a qualifying period of time..
also the principal residence is CGT free..and dont the flippers game that….
private debt is now 200% of income and still increasing.

#87 Morons on 01.21.18 at 6:42 pm

We are, collectively, morons. How did we ever get to the moon or discover penicillin? No politician, no shyster, no Trump is responsible for this mess. We are, all of us, who live on planet Moron. I would trust my dog to make better decisions.

#88 YVRMC on 01.21.18 at 6:47 pm

Wow , SCM has crossed the line many times and intentionally baited so many people. Really makes me wonder what the hell he/she said to finally have the guillotine drop …….

#89 OttawaMike on 01.21.18 at 6:49 pm

Give SCM a week or 2 then let him back.

I found some of his stuff entertaining.Sort of like Smoking Man’s liberal alter ego.

Any commenter that elicits that kind of feedback from others here can’t be bad for traffic.

#90 jess on 01.21.18 at 6:51 pm

pill mill “clinics”

According to the indictment, Sartini, Palma, Rodriguez, Hofstetter and a co-conspirator charged in another indictment, from about April 2009 to March 2015, ran the Urgent Care & Surgery Center Enterprise (UCSC), which operated opioid based pain management clinics, “pill mills,” in Florida and Tennessee, where powerful narcotics were prescribed and/or dispensed. The defendants are alleged to have hired medical providers with DEA registration numbers, which would allow the providers to prescribe controlled substances. The prescriptions were primarily large doses of highly addictive and potentially deadly controlled substances. As alleged in the indictment, individuals seeking prescriptions would often travel long distances purporting to suffer from severe chronic pain.

The superseding indictment alleges the defendants distributed quantities of oxycodone, oxymorphone and morphine sufficient to generate clinic revenue of at least $21 million. As per the indictment, the clinics did not accept insurance, received gross fees and ordered unnecessary drug screenings defrauding Medicare. Shell companies were set up to launder the proceeds.

As alleged in the indictment, approximately 700 UCSC enterprise patients are now dead and a significant percentage of those deaths, directly or indirectly, were the result of overdosing on narcotics prescribed by the USSC Enterprise. As alleged in the indictment, the narcotics prescribed by the UCSC enterprise contributed to the deaths of another significant percentage of those patients.

The indictment further alleges that many patients arrived in groups, who were sponsored by drug dealers who paid for the pain clinic visits and prescriptions to obtain all or part of the opioids and other narcotics prescribed to the purported pain patients. In return, drug addicted patients would receive a portion of prescribed narcotics for free from the sponsor. ,,,

As alleged in the indictment, approximately 700 UCSC enterprise patients are now dead and a significant percentage of those deaths, directly or indirectly, were the result of overdosing on narcotics prescribed by the USSC Enterprise. As alleged in the indictment, the narcotics prescribed by the UCSC enterprise contributed to the deaths of another significant percentage of those patients.

The indictment further alleges that many patients arrived in groups, who were sponsored by drug dealers who paid for the pain clinic visits and prescriptions to obtain all or part of the opioids and other narcotics prescribed to the purported pain patients. In return, drug addicted patients would receive a portion of prescribed narcotics for free from the sponsor.

#91 M on 01.21.18 at 6:52 pm

“Huh? How is this possible?”

..lol… by printing money Gartho baby. You don’t get 100 bucks for a pack of butter (yet) but you get RE hyperinflation, healthcare costs hyperinflation, student debt hyper inflation, stock market hyperinflation…etc.

money is still “free” even at 8%.

#92 Caninaus on 01.21.18 at 6:55 pm

#72 Penny

If you have three children in that house where can you have an office, kids playroom, workshop etc? I can buy double the house (basement) in small town Ontario for the same price.

#93 Trocxi on 01.21.18 at 6:58 pm

#41 Screwed Canadian Millenial on 01.21.18 at 5:07 pm

It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth
======================

How many time have you made this promise before, Garth?
And how many times have you not delivered?

This Marxist kid is openly dissing you.

#94 Loonie Doctor on 01.21.18 at 7:00 pm

For those thinking Australia is just like Canada, but with a nicer climate. Think again. There is a reason that it was where Britain used to send its prisoners. I will admit that the accent does make an average looking person become way sexier, but everything there was designed to kill you. Snakes – poisonous. Plants- poisonous. Spiders- poisonous. Forget to shake out your boots – scorpions. Go swimming – sharks. Now Real Estate.

#95 steph on 01.21.18 at 7:12 pm

Damn the enter key… Anyway…

That is a very entertaining post Garth. Thank you.
I’ve been watching these humping kangaroos for a few years now and they are much wilder than beavers.

They will be humbled. Just like the bitfools.

#96 Alberta Guy on 01.21.18 at 7:16 pm

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

—-

Thank you!

#97 Bby renter on 01.21.18 at 7:23 pm

#15 Flop…
You inquired about 976 Leovista the other day. I was out for coffee with my realtor (one of the very few who agrees that we shouldn’t buy yet) and Leovista sold for $2,300,000 on Jan. 6th.
You should also check out 6020 Malvern in Bby. Sold on Dec 2nd for $1,775,000 (68 days on market) but purchased for just over $2mil back in 2016.
Thanks for your posts. I read them all and the Leovista listing helped me in an argument with my MIL today who thinks North Van is still on fire and buying, even recently, would have been a great idea.

#98 dakkie on 01.21.18 at 7:28 pm

What Will Rising Mortgage Rates Do to Housing Bubble 2?

http://investmentwatchblog.com/what-will-rising-mortgage-rates-do-to-housing-bubble-2/

#99 Spock on 01.21.18 at 7:31 pm

#25 Screwed Canadian Millenial on 01.21.18 at 4:26 pm

I think a lot of folks on this board also regret your decision. Hopefully you will find a country brave enough to take you in very soon.

————————————————–

#25 Screwed Canadian Millenial on 01.21.18 at 4:26 pm

I should have moved to Australia 10 years ago. I really regret not doing so. Much better country than Canada. Higher wages, much better weather, incredible women

#100 Former Fool on 01.21.18 at 7:32 pm

#41 Screwed Canadian Millenial on 01.21.18 at 5:07 pm
It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth
—-
Thank you Garth! I was sick and tired of having to scroll past his whining drivel to read some constructive comments. Please make SCM’s ban permanent. The blog is better without him. You’ve given him enough lenience.

SCM was not here to intellectually debate, ask questions, and grow his world view. It was constant, in your face, non-stop rants that only reinforced his own biases. Considering there are people here who post that have some significant life experience, their points of view should be heard and considered, rather than dismissed without a second thought. Even SCM’s name (and anti-Canada rants) imply a victim mentality. Good riddance!

Regarding your blog post, I have a cousin in Sydney who is executing this technique. He owns a fancy place and has a couple of rentals. We had a Google Hangouts session and we tried to analyze his rate of return on his rentals by running some numbers on an Excel sheet. Basically I showed him his incredible rate of return was mostly based on capital appreciation of the rentals he holds, and that he should take money off the table (sell the rentals) and diversify. He kept mentioning this negative gearing and explained it to me. I explained back that I don’t invest with the goal of losing money to claim losses on my tax returns.

As expected, he didn’t listen and is heavily exposed to Sydney real estate with significant leverage. I’m quite worried about what a correction will do to him.

Keep up the great work Garth. This blog provides very valuable information (for free, at that) and I hope it is around for many years to come. It was satisfying to know about the stress test months before mainstream media covered it. Makes you wonder about the quality of investigative journalism these days.

#101 Headhunter on 01.21.18 at 7:41 pm

In my opinion, I think all the Trump bashers in this blogs comments section are very misinformed on Trumps true character. We should all have more respect for Mr. Trump since this is the 45th President of the United States we are talking about here.

__________________________________________

#truth the haters do not respect democracy. Guy won get over it.. America is doing better under his stewardship simple as abc123. TRUMP is the only man in memory to win a rigged election.

#102 Screwed Canadian Millenial on 01.21.18 at 7:41 pm

BANNED

#103 Spock on 01.21.18 at 7:42 pm

SCM was banned (hopefully forever) on the day the blog title was appropriately titled “MORONS”.

Enjoy the peace everyone and remember from SCM that the less whining in your life the better it will be.

—————————————————-

#41 Screwed Canadian Millenial on 01.21.18 at 5:07 pm
It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

#104 Chelsea on 01.21.18 at 7:42 pm

I was born in Australia, lived there most of my life. It certainly is a lovely, warm place to live. Travelled back home many times to see family, and the life I knew was no more, how times and people have changed. As has Canada changed …. people are the same over, rude, or polite, stubborn or mislead. Regarding home prices in Aussie … well I wouldn’t blink an eye to buy there or here in B.C. I suppose we all nuts in a way to buy at these notorious prices … anyhow, will wait and see approach … only thing on my mind is kayaking soon!

#105 Yanniel on 01.21.18 at 7:42 pm

This post was refreshingly interesting.

#106 LivinLarge on 01.21.18 at 7:49 pm

Oh Neil, oh Neil, oh Neil…I presume you do your own taxes.
“a few years ago I had a loss of $25,000 due to substantial maintenance expenses. I can assure you that I was able to deduct this from my salary income for the year and received a substantial refund.”.

If you didn’t get the drift of Fearless Leader’s comment, NO YOU CAN’T—Legitimately.

The fact that you haven’t been audited and reassessed is just pure boneheaded luck. I can’t recall what the time limit on unintentional errors is but if some auditor looks at that year’s return in a desk audit then oy are you screwd and if you’ve been a landlord for a few years the auditor has the discretion to declare the error intentional and fraudulent and crickie, fraud has no time limit. The old “ignorance of the tax law is no defense” if you’ve been at it a while is especially loved at CRA.

So, you got away with it because noone has looked at it closely but the odds aren’t great that you’ll slip by the “legitimate mistake” deadline.

Unless you want, tax, 50% penalty plus years of interest, you’d do well to notify CRA now before you get the “Oh Neil” letter. You’ll pay th taxes and the interest but at least the penalty will usually be waived.

#107 Periscope on 01.21.18 at 7:54 pm

SCM this is serious not like everything else since the 1960’s. No really your banned forever, or until mandatory release after 20 minutes in your room. But, we’ll be really mad at you, well maybe not. We will talk to sternly in a soft new age kinda way.

#108 For those about to flop... on 01.21.18 at 7:58 pm

#82 Bby renter on 01.21.18 at 7:23 pm
#15 Flop…
You inquired about 976 Leovista the other day. I was out for coffee with my realtor (one of the very few who agrees that we shouldn’t buy yet) and Leovista sold for $2,300,000 on Jan. 6th.
You should also check out 6020 Malvern in Bby. Sold on Dec 2nd for $1,775,000 (68 days on market) but purchased for just over $2mil back in 2016.
Thanks for your posts. I read them all and the Leovista listing helped me in an argument with my MIL today who thinks North Van is still on fire and buying, even recently, would have been a great idea.

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

This is great example of why I spend the time yo put the cases up.

I don’t always get a reply but if people want to help me carry the load I can use the help and do this thing by committee.

Yes Malvern was also on that list I wrote the other day and has been featured on this blog before,I just looked at it this morning to see if it had been updated.

I will present these two again when they are CONFIRMED PINK SNOW but I will just put them up now.

Leovista has an anomaly in the database but we will just go with the highest one for the sake of fireworks

Paid 2.6 March 2016

Sold 2.3 January 2018

After expenses probably 500k mistake

$$$$$$$$$$$$$$$$$$$$$$

Now let’s do Malvern.

Paid 2.01 May 2016

Sold 1.77 December 2017

After expenses probably a 400k mistake.

So 900k down the drain in just two transactions…

Thanks again for the help, I can’t save everyone but it’s the least I can do to reward everyone after paying the expensive membership for this blog…

M43BC

976 Leovista Ave,North Vancouver. Paid 2.62/2.4 March 2016 ass 2.1 2016

Jul 24:$2,688,000
Oct 12: $2,498,000
Change: – 190000.00 -7%

https://www.zolo.ca/north-vancouver-real-estate/976-leovista-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDAyODQ5UA==

Sold on December 2

6020 Malvern Ave ,Burnaby

Paid 2m May 2016

Asking 1.99

https://www.zolo.ca/burnaby-real-estate/6020-malvern-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDAzWDFNWQ==

#109 earlybird on 01.21.18 at 7:59 pm

#78 Terry…

I read all of his books, co written books, and associated books. Once you understand him and you know where he is coming from, none of the US politic crap is bothersome. People elected a businessperson, not a president, so shouldn’t expect the cliché presidential behavior. His communication could use some improvement though….

#110 cramar on 01.21.18 at 7:59 pm

Just heard a realtor friend tell some people yesterday that over the long term you cannot beat RE because it always goes up, while the stock market is risky since it goes up and down. More millionaires owe their wealth to RE than any other means, he said.

Wait till the REAL collapse in Cdn (and Aussie) RE happens! It will be 1929 again for average people. Only the cause will be different.

People do not buy stocks with 20x leverage, the way they do houses. Also when markets fall, stocks are liquid. Houses are not. – Garth

#111 pppppppap on 01.21.18 at 8:01 pm

Despite what SCM is claiming. Canada remains a very great place to live. I’ve backpacked across ~50 countries and I still remember the sigh of relief I had when I landed on Canadian soil. It isn’t without its issues, but for people of different ethnic background, it is the most tolerant.

#112 Screwed Canadian Millenial on 01.21.18 at 8:01 pm

BANNED

#113 akashic record on 01.21.18 at 8:09 pm

For your popcorn

https://en.wikipedia.org/wiki/Max_(2002_film)

#114 scooby doo on 01.21.18 at 8:15 pm

i just got a text from my pal Smoking Man; he told me Garth has banned SCM. Smokey told me I can now return to reading the comments section–I had decided to ignore them due to SCM. I do hope it is a permanent ban.

#115 fishman on 01.21.18 at 8:20 pm

I seem to remember a statistic that at the start of WW11 Australia & Canada were 60% rural populated. At present both were around the world’s highest at 80% urban population. Maybe this has something to to do with high R/E prices. People like to pack in tight to the core here in Van town. The young & the rich anyways. Meanwhile, the old farts that own & want out, grab major dough. Bumps up hinterland prices. Mind you, the 3rd millennium is the age of the Pacific. The rest will be dragged along, like it or not.

#116 Sydneysider on 01.21.18 at 8:22 pm

A house auction in Sydney is an enjoyable event, with plenty of people from the neighbourhood wandering over to watch.

Once bidding stops, the auctioneer is allowed to put in his own bid to get things moving again. Once the top bid is reached, he disappears indoors to talk to the owners, and then comes back out with a counter-offer for the bidder, usually $10-20K higher.

While the owners stay out of sight indoors, the bidder’s behaviour is carefully watched by the gathered crowd. At this point, he has the choice to bid against himself in effect or walk. Usually they buckle, and receive congratulations from the wife and friends.

#117 I foolishly think I really know something on 01.21.18 at 8:26 pm

#16 Victor V on 01.21.18 at 3:54 pm

A paltry 77 sales of detached homes so far this month. Likely to be the lowest number in many years for January.

———————————————————–

Irrelevant. It just means that other housing is going higher faster. Soon SFD numbers will also start the upward climb again.

#118 mathman on 01.21.18 at 8:30 pm

#27 Toronto Tim

Nice try. Private Golf Clubs with the exception of a choice few are actually in really bad shape, dropping fees and intiation costs because there members are dying – no one under 40 wants to golf (Or spend $25k for the privilege of doing so on the same course) I’ve had a few people from unnamed clubs ask me if I was interested in the last year – never happened before.

Already mentioned – but define high income earning? Take the average couple here, multiply by 4x then you are looking at other cities where RE prices are comparable to here. Incomes are not what is driving things.

Banks giving out juicy bonuses to the top quintile of their staff is hardly revolutionary and I call BS on all the other things you spew.

#95 Loonie DR – I take that was sarcasm. Aussies would say we have spiders and snakes, you (Canada) have bears, all kinds of large cats and cold that can kill. Lived down under half my life – saw a handful of poisonous snakes just like most Canadians have never seen a grizzly up close.

Math

#119 common sense on 01.21.18 at 8:41 pm

THANK YOU !!!!!!!!!!!!!!!

SCM banned….

Your blog G and if you ever need a unbiased vote to BAN another idiot, please ask and the majority will rule.

#120 Blessed Canadian Millenial on 01.21.18 at 8:44 pm

I’ve been to Australia many times (wife is an Aussie – Sydneysider). In fact, just came back from a long trip from down under.

Their mentality regarding RE is very different (or the same, depending upon where you’re looking from): RE always goes up.

Wife’s one cousin has 5 properties. The other has 6. All negative gearing to help with marginal taxes. Speaking of negative gearing, one can do the exact SAME thing here in Canada. That is, if you have a loss in your rental property (not sure why you’d have a rental property with negative cash flow, but bear with me), you can then claim this loss against your other income thereby directly lowering your taxable income thus saving taxes at your marginal rate.

This strategy isn’t as popular here in Canada as it is in Australia. That’s because prices have gone INSANE in Sydney.

Case in point: my in-laws place, in Baulkam Hills. 4 years ago when we last went, their 30-square home (3,000 sq ft) would be selling for ~$800K. Now the same home is worth $1.4M. And this is a home that is 1.5 hours away from the city. Yikes.

Not sure if he market will crash or not, but a LOT of speculation happening in Sydney, mostly from local buyers.

The CRA will not allow an investor to deduct rental real estate losses from employment income on an unrestricted basis, as in Australia. There must be a reasonable expectation of profit in order for losses to be allowed – thus, it’s temporary. – Garth

#121 Blessed Canadian Millenial on 01.21.18 at 8:48 pm

BTW, I wouldn’t want to live in Sydney (or Australia). Yeah, the weather may be good but things are quite expensive: cars, homes, utilities, etc. Food and electronic prices are roughly the same. High-end clothing is way more expensive in Australia as well.

Most importantly, Australia is away from everything. Want to go to Europe/North America? At least a 12-hour flight.

#122 Chi Square on 01.21.18 at 8:49 pm

Although a Jaguar fan was a tad premature in his celebrations on here earlier today (Brady and the Patriots did the impossible, again), I think the Eagles are going to the Super Bowl (31-7, late 3rd qtr).

Which brings me to the 80% correlation between the Super Bowl winner (AFC vs NFC) and the stock market. If AFC (Patriots) wins, stocks go down, and if NFC wins (Eagles) stocks go down. Gronkowski is questionable, but I never bet against Brady. Act accordingly.

#123 Another Deckchair on 01.21.18 at 8:55 pm

@73 Long Branch Apprentice;

Heating bills vs. spending on insulation.

Look at your electricity and (whatever utility) bill.

Seems to me (note: with little actual calculating) that utility bills have fixed delivery charge, fixed system depreciation charge, fixed debt repayment charge, fixed union charge (you get the idea)…

The actual amount you’ll save if you halve the use of your electricity will be less than a couple of Tim Hortons’ coffees per month.

Something to think about – maybe the cards are stacked *against* actually spending money to build an efficient place?

Something to think about, and hopefully someone here will correct me if I’m going off on a wrong tangent.

#124 VanIsleStyle on 01.21.18 at 9:01 pm

Bravo Garth for banning SCM who is only here to agitate with nonsensical and self-contradicting rants while constantly whining like a spoiled crybaby. Please make it stick this time.

#125 Economystical on 01.21.18 at 9:02 pm

Garth, again, you fail to see the point.

You see, everyone has unlimited desires and wants, including the government. how do you satisfy unlimited desires and wants? Well, the easiest way is unlimited money. But how do you create unlimited money in an environment where most money is “loaned” into existence and we can’t yet just print it? Asset values against which you can make a loan.

Printing money doesn’t work because there is no way to decide who to give it to until we have a “guaranteed income” from the state. Once we get that, and it is in the works, then we can just give everyone the amount of money required. But until that glorious day we still need a reason to give people money. That is where real-estate comes in. Don’t forget that when somebody pays $2 million for a wreck of a property and takes on a lifetime of debt, somebody else gets $2 million that they can spend! And then they sell it years later for $4 million, so they have $2 million they can spend too! Don’t you see the brilliance of it? We are making everyone a multi-millionaire through the magic of Economystics. Soon, there will be no poor people left except those who follow your advice. We will eventually extend this to the whole world, and mud huts with no electricity or water will be worth $1 million. Poverty solved.

All you need to do to become rich is buy something, real estate especially but stocks or bond for those who have money, wait ten years, and you will be rich! No work or insight required! It is the most egalitarian system ever devised! Any fool can do it, and those who don’t are fools indeed!

It fixes so many problems that I cannot believe there are those that don’t subscribe to Economystics. For example, government debt. For example, some say the government debt in Canada is about $18,000 for every living being including your son’s hedgehog. Seems a lot for a family of 4. But if you live in Toronto or Vancouver, that’s 1 year of appreciation on your house! Hardly seems life altering. Especially since we have given you year after year of price appreciation. You didn’t have to work for it! And the government debt is paid, just out of the appreciation alone!

They say artificial intelligence will eventually mean the end of work and riches for all. But Economystics has already done it! We have achieved our goal of a free lunch for everyone and nobody working in the kitchen, and we didn’t need machines.

Well, there are still a lot of people living in huts and tents, even in prosperous cities, but they didn’t buy real estate so it’s their own damn fault. However, soon you will be able to monetize a hut or a tent if you have a good place to squat, and soon after that all huts and tents will be monetized. It will be at this point that people realize that economystics was right all along. We are going to save the world.

#126 dr. talc on 01.21.18 at 9:03 pm

Australia cancelled the carbon tax. We are hopelessly passive.

http://www.cbc.ca/news/world/australia-s-carbon-tax-repealed-after-2-years-1.2709642

#127 stage1dave on 01.21.18 at 9:04 pm

Great…there’s another nation more screwed up about RE than we are!

On a positive note, I’ve learned what a “bogan” (great description, btw) is and got re-acquainted with “negative gearing”. Although I’m going to assume that someone worried about “losing” money on paper isn’t too worried about “losing” money in their wallet.

Unless their banks are, like ours; behaving like open-ended slush funds re: mortgage funding as long as the taxpayer is carrying all the risk?

(Btw, isn’t an “interest only mortgage” a contradiction in terms? Like “customer service rep” ?)

#107 LivinLarge: 7 years; unless CRA has belief of ongoing fraud/scam/ongoing tax evasion/etc.

#128 SpeedWeasel on 01.21.18 at 9:10 pm

One observation about Australia:

The weather is nice. Too nice. I was in Brisbane and the weather reports are typically “Today’s high will be 27 degrees with a UV index of 14.”

I thought to myself: “What?… 14? That doesn’t make any sense. In Canada we rarely get to a UV index of 8. If it ever went to 9 there would be a health advisory. So the UV scale must stop at 10. These crazy Aussies are pulling a Spinal Tap with their talk of a UV index of 14.”

Then I googled it. I was wrong: It turns out that the UV scale does not stop at 10.

Being outside in the sunlight after about 9AM is actually painful on the skin. A UV index of 14 is like the winter wind biting into your cheeks. You can feel the radiation as it sears your epidermis.

Incredible beaches however.

#129 Smoking Man on 01.21.18 at 9:10 pm

115 scooby doo on 01.21.18 at 8:15 pm
i just got a text from my pal Smoking Man; he told me Garth has banned SCM. Smokey told me I can now return to reading the comments section–I had decided to ignore them due to SCM. I do hope it is a permanent ban.
…..
No I dident for the record I was starting to like SCM
She’s a troll no doubt but she really put in a lot of effort to piss people off. That’s work ethic

Never worked on me. Why would socialist come on a financial blog where capitlists are engaged in exchanging money making ideas.

I think she has a crush on me:)

#130 Lost...but not leased on 01.21.18 at 9:17 pm

OMG….

Last post had some certifiable morons spew their ignorance re: Gun Laws.

If one does their homework…compliance = literal waiving of civil liberties re: Search Warrants

As an addendum..living relatively close to the US border..if I go to Seattle..I run a gauntlet of hundreds if not thousands of gun owners,and without any fear .(aka “survived” many border crossings….go figure)

May suggest morons watch the classic Monty Python self- defence skit…..

“Canada” must translate into citizens assume various inappropriate positions in deference to the 300+ morons we call MP’s.

#131 Bezengy on 01.21.18 at 9:20 pm

Sydney weather right now is 32C degrees, and it feels like 41C. I’ll pass thanks, besides it’s not only houses that are expensive, how does $40 for a pack of smokes sound?

http://www.independent.co.uk/news/world/australasia/australia-cigarettes-price-pack-smoking-tax-hike-how-much-do-they-cost-a7308381.html

#132 45north on 01.21.18 at 9:21 pm

Smoking Man: Toronto detached listings jump 240% this is going to get ugly.

this is January, nobody pays any attention to real estate. I mean most people don’t but by the end of February when sales are a quarter of what they were in 2017, most people are going to notice. The banks are pulling back – the die is cast.

#133 T on 01.21.18 at 9:21 pm

#27 Toronto Tim on 01.21.18 at 4:28 pm
Garth,

Without any further changes, what this indicates is that Toronto still has a lot of room to run to get anywhere near Australia levels.

In Toronto, the number of high earning two income families is mind blowing. Private clubs have multi year wait lists. Top golf clubs have 10 year wait lists.

The accounting firms have promoted more partners this year in Toronto then any other year. Same goes for consulting firms. The banks and insurance companies are producing enormous bonuses and stock based compensation for their staff.

And many are awaiting the largest intragenerational wealth transfer as boomers pass on wealth to their children, well before they pass.

I think you are providing bad advice.

—————

Toronto vs Australia, a city vs a country. Completely different economic realities, tax systems, political leadership.

I think you are providing bad advice. Garth is providing incredible insight. Learn the difference.

#134 Banned Canadian Millenial on 01.21.18 at 9:26 pm

BANNED

#135 T on 01.21.18 at 9:30 pm

#41 Screwed Canadian Millenial on 01.21.18 at 5:07 pm
It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth

———

Thank you! SCM is an embarrassment to millenials and this blog.

Garth, you are a champ. What charities do you support? I would gladly make donations in return for all your efforts. You have saved and educated many, me included.

#136 Steve French on 01.21.18 at 9:38 pm

The thing about Australia is… houses are even more expensive than in Canada, and you don’t even get a basement or a garage.

So you pay more than in Canada, for less than half the house. Nobody has any space in their homes, even for their clothes!

And the quality of the construction is just terrible. Australians talk about “double brick homes” as if it’s some sort of unattainable luxury, and when you get one it marks you as a wealthy elite.

#137 For those about to flop... on 01.21.18 at 9:39 pm

This is the list I put up the other day,mainly December sales.

There is another one from North Van on it

Maybe someone can get some answers…

M43BC

https://www.zolo.ca/delta-real-estate/1772-55-street

https://www.zolo.ca/vancouver-real-estate/6626-inverness-street

https://www.zolo.ca/delta-real-estate/11231-64a-avenue

https://www.zolo.ca/burnaby-real-estate/3041-noel-drive

https://www.zolo.ca/richmond-real-estate/9551-kirkmond-crescent

https://www.zolo.ca/vancouver-real-estate/2316-w-21st-avenue

https://www.zolo.ca/north-vancouver-real-estate/2355-panorama-drive

https://www.zolo.ca/burnaby-real-estate/6020-malvern-avenue

https://www.zolo.ca/vancouver-real-estate/2306-w-12th-avenue

https://www.zolo.ca/port-coquitlam-real-estate/3550-pearkes-place

https://www.zolo.ca/vancouver-real-estate/2993-w-21st-avenue

https://www.zolo.ca/vancouver-real-estate/5540-windsor-street

#138 Tower on 01.21.18 at 9:40 pm

Purchasing in Perth right now.

https://www.youtube.com/watch?v=cLSfZfYd7yI

#139 Blessed Canadian Millenial on 01.21.18 at 9:44 pm

#121 Blessed Canadian Millenial on 01.21.18 at 8:44 pm

The CRA will not allow an investor to deduct rental real estate losses from employment income on an unrestricted basis, as in Australia. There must be a reasonable expectation of profit in order for losses to be allowed – thus, it’s temporary. – Garth

—-

Ahh… that’s the difference. Temporary “loss” can be OK but CRA will disallow it if it’s going on forever. Thanks.

Regardless, anyone wanting to rent whilst being cashflow negative each and every month is risking by making a huge bet that real estate will go up indefinitely.

Leverage works both ways: it can make you rich and it can decimate your net worth.

#140 Toronto Tim on 01.21.18 at 9:44 pm

To the deluded,

A detached home in a great neighborhood in Toronto is supported by rising incomes.

All this talk about average incomes in Toronto and average home prices is delusional.

Yes, as the city grows, the average Torontonian can afford a condo or move to the suburb/exurb. The average person in Toronto cannot afford a single detached home. And definitely not in a good school district near the subway. There aren’t many of those homes and will only be reserved for the successful.

Look at the average income in rosedale. 800k – average house price is 4million. Only price/income of 5x. And there is little mortgage debt in that neighborhood.

The Kingsway average household income is 700k. Average house price is 3m. Just above 4x price/income.

The takeaway is, Toronto is a city where you can make it big. And, if you do, the house prices are not out of reach relative to what you can earn. In what other city can people make that kind of money and only on 4-5x income to live in the best neighborhoods?

Instead of hoping for lower prices, instead the focus should be to take advantage of what Toronto offers and make more money.

And if you can’t make it big in the city then move to Ottawa. You can work for the government and have a decent lifestyle.

No more whining and waiting.

#141 Damifino on 01.21.18 at 9:48 pm

#12 InvestorsFriend

Someone once suggested: “Think about how stupid the average person is”. Now consider that half the people are stupider than average.
————————————

George Carlin said it. It’s also technically incorrect. To be correct, he should have referred to ‘mean’ intelligence, not ‘average’ intelligence.

Now, George Carlin (R.I.P.) was himself a very intelligent guy and was surely aware of the above. But it would have made a clumsy joke.

#142 stage1dave on 01.21.18 at 9:49 pm

Thought I’d add another thought to “negative gearing”…

I’ve been involved with several ventures over the last 3 decades that didn’t make money (to put it mildly) or proved to be loss leaders haha.

Luckily, I’ve had a couple very good accountants over the years, and I understood enough of the tax code to to know I couldn’t apply losses incurred in the car end of things, for instance, against the art end of things; presuming the latter made money.

(Unless I was running a “sole proprietership” where all of this income (and expenses) were grouped together, because it was accruing to same person; (me) I wouldn’t want to attempt it)

Another reason “negative gearing” can get a bit hairy is CRA uses a rather common-sense rule about “potential” income production from a potential business…briefly stated, if it doesn’t stand a reasonable chance of generating a profit within 3 years, they can disallow all deductions, and can simply treat the “business” as a tax avoidance “scheme”.

I learned about this 30 years ago while considering a serious involvement in organized drag racing; I’m sure anyone who’s tried to run an NHRA class-legal car (S/ or SS/) knows it was a great way to turn 100K into 10 grand back in the 80’s and 90’s.

(the cost nowadays is simply astronomical)

My accountant at the time told me the only way to get a good tax deduction legally was to use the race car to advertise a “legitimate” business (one that was making money – mine or someone else’s) and even then it might be a percentage of the expenditures; it simply got too complicated to go any further with.

(I also heard the phrase “geographic viability”…if you have a local business, and generate none in Las Vegas; don’t try writing off your “expenses” in racing there)

That’s why you’ll see a ton of “…racing inc.” on the doors of many smaller U.S. competitors and practically none in Canada.

I’m aware that our host has somewhat more experience in these matters than myself, so if I’m in error here it will probably be pointed out…

#143 For those about to flop... on 01.21.18 at 9:51 pm

#136 T on 01.21.18 at 9:30 pm

Garth, you are a champ. What charities do you support? I would gladly make donations in return for all your efforts. You have saved and educated many, me included.

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

Hey T ,you just gave me an idea.

In light of recent developments in my family can anyone that appreciates my efforts to report on Vancouver real estate in a timely manner on this blog donate a small amount to the Terry Fox Foundation when you have a spare bill hanging around.

Much appreciated,Flop…

M43BC

#144 Mortgage Attack on 01.21.18 at 9:54 pm

In Australia negative gearing has no limit? Multiple properties, ongoing annual deduction against income? Seems very creative accounting to me.

#145 TurnerNation on 01.21.18 at 9:55 pm

Australia is running out of land you see. Located a convenient 1-2 day trip from most of world, everyone wants to live there?!


Bested! Fall down tar paper semi, a Leslie-villan,with a sometimes roof…$900,000
I have a few hour sojourn here every few weeks. Noted many shops on Queen St are closed. Bet its inhabitants are flat broke.

Realtor gush: ” Ideal Opportunity To Rebuild.” – a semi?

Su-weet! score: “Old Appliances & Any Debris Will Stay ”

https://www.realtor.ca/Residential/Single-Family/18860207/26-LEWIS-ST-Toronto-Ontario-M4M2H3-South-Riverdale

#146 T on 01.21.18 at 9:59 pm

#70 -=jwk=- on 01.21.18 at 6:12 pm
A made up poster boy with very limited intellectual capabilities and very unimpressive resume rises to power with the help of rich elite donors and the prestutute press.

That was Harper. We have a new guy now. Someone who actually had a job before politics.

————

Running a successful business is not a job? What a foolish comment you made.

I wouldn’t consider a drama teacher a top tier job which would prepare someone to lead a nation. Well maybe a nation of children, which sounds about right lately. See SCM.

#147 Dead Cat Bounce on 01.21.18 at 9:59 pm

Garth, Thank you for this blog,

Thank you for BANNING SCM !!!

M54BC

#148 dee on 01.21.18 at 10:02 pm

Whoa!!!

Toronto detachted listing jump 240% this is going to get ugly.
————————-

from when?

#149 islander on 01.21.18 at 10:02 pm

Garth, thanks for all your hard work. Take care……

#150 T on 01.21.18 at 10:03 pm

#142 Toronto Tim on 01.21.18 at 9:44 pm
To the deluded,

A detached home in a great neighborhood in Toronto is supported by rising incomes.

All this talk about average incomes in Toronto and average home prices is delusional.

————

Respectfully, you are delusional. You point to a few rich outlier neighbourhoods, try referencing something more middle class.

And please provide source data for you claims. Claiming things are a certain way because you believe it is does not make it true.

#151 Raging Ranter on 01.21.18 at 10:20 pm

@ #80 Dave, that’s not bad , but do you have any of SCM pulling the pin and jumping on his own grenade? Just wondering.

#152 T on 01.21.18 at 10:28 pm

#145 For those about to flop… on 01.21.18 at 9:51 pm
#136 T on 01.21.18 at 9:30 pm

Garth, you are a champ. What charities do you support? I would gladly make donations in return for all your efforts. You have saved and educated many, me included.

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

Hey T ,you just gave me an idea.

In light of recent developments in my family can anyone that appreciates my efforts to report on Vancouver real estate in a timely manner on this blog donate a small amount to the Terry Fox Foundation when you have a spare bill hanging around.

Much appreciated,Flop…

M43BC

—————

For you, I absolutely will. I appreciate your efforts and you seem like a very genuine person. I hope others do the same.

#153 Periscope on 01.21.18 at 10:29 pm

Someone has to talk about something other than real estate, good grief, enough!
Garth has stated that Nationalism is bad, and can lead to all kinds of ills including war, and there is evidence that Nationalists are not nice to puppies. So being the curious type I am, I dug out Websters.
Definition of nationalism
1 : loyalty and devotion to a nation; especially : a sense of national consciousness (see consciousness 1c) exalting one nation above all others and placing primary emphasis on promotion of its culture and interests as opposed to those of other nations or supranational groups ·Intense nationalism was one of the causes of the war.
2 : a nationalist movement or government ·opposing nationalisms
-Loyal and devoted to Canada…yup
-Do I believe that the nations that comprise the Western democracies in general, and in Canada specifically are better than all the other forms of government on the planet…yup
-Do I believe the in the interests placing primary emphasis on promotion of Western (Canadian) culture and interests as opposed to those of other nations or supranational groups. This depends, if we are talking about authoritarian countries with dismal human rights records then yes. If we are talking about countries like Japan, or South Korea then no.

So I am proud Canadian with strong nationalist leanings, but with strings. I admit my nationalism might lead to war, but only because I will not willingly be chained by evil.

#154 Gary smith on 01.21.18 at 10:31 pm

#9 moneyDriven on 01.21.18 at 3:29 pm

Exactly my thoughts and unfortunately the reality if you live anywhere near Vancouver.

If prices slide due to some (unknown) catastrophic event, how much will they retreat? A couple of years of gains lost-back to hot 2015 levels.

The answer Garth inevitable retreats to is suggest life could be great in some other Canadian cities, with reasonably prices real-estate. i agree on the RE price part, but grass isn’t always greener.

We have a small group of closely located family and friends-in Vancouver and immediate area. I wouldn’t trade my kid’s time with their grandparents and cousins for a well made, but cheaper box somewhere in the barren, bland prairie landscape-like Calgary.

That’s the position we are in.

Resubmit-?duplicate.

Oh, went to open houses in Delta BC today. It may be on a flood plain and at sealevel, but lots of interested kooky-loos. (including a lot of people who clearly couldn’t or didn’t want to speak english. GARTH for you I won’t mention apparent nationality or language. But they weren’t speaking French or German).

Here is hoping for a nice, firm earthquake.

#155 Lost...but not leased on 01.21.18 at 10:39 pm

Flop

Re: Cancer…

Unless you understand the politics…you may possibly do your loved ones a dis-service.

99% of the population is under control of “Rockefeller medicine”.

GOOGLE: “Dr Mary’s Monkey”…the truth will set you free…(after the initial freak out)…

#156 akashic record on 01.21.18 at 10:47 pm

Buckle up…

“Brazen Plot To Exonerate Hillary Clinton” And Frame Trump Unraveling, Says Former Fed Prosecutor

The 99-page FISA court opinion “describes systematic and on-going violations of the law [by the FBI and their contractors using unauthorized disclosures of raw intelligence on Americans].

https://www.zerohedge.com/news/2018-01-21/brazen-plot-exonerate-hillary-clinton-and-frame-trump-unraveling-says-former-fed

#157 ben on 01.21.18 at 10:47 pm

It is nuts, no argument there.

But I think you are missing a trick in not discussing the land value of these properties. The largest component of most “house prices” is land.

Clearly you could have a house that is in desperate need of renovation occupying a prime spot with a very large garden. The land is the expensive part.

Because you fail to address this aspect discussion on land itself as a resource is not going to be debated, which is a shame.

Why not do some posts on land costs, property taxes (on the land + building vs land alone), how banking really works (money issuance not intermediaries)?

Clearly the cost of money is seen as critical by you, why not talk about where the stuff comes from too. And what it’s issued against.

Not disagreeing with your post and hope you take this as constructive. Cheers.

#158 Ace Goodheart on 01.21.18 at 10:52 pm

RE: #147 TurnerNation on 01.21.18 at 9:55 pm:

26 Lewis Street Toronto Ontario M4M 2H3 – probably has more racoons living in it than it does people.

That is an example of a house that you should NOT buy. It appears to have structural problems. Looks like the roof is going to collapse. Likely the problems start down near the footings and work their way up.

No amount of spit and shine can fix a house with structural problems. You need a good, solid structure that is waterproof. Everything else can be fixed…..

#159 Ronaldo on 01.21.18 at 11:12 pm

#144 Flop

Hey Flop, just to let you know, I have just made a donation to the Terry Fox Foundation. I challenge anyone else to do the same. Keep up the good work.

http://www.terryfox.org/get-involved/ways-to-give/

#160 NoName on 01.21.18 at 11:34 pm

@ #118 mathman

at least bears, all kinds of large cats and cold dont set forest on fire when the aye hungri. just saying…

Australian raptors start fires to flush out prey
https://cosmosmagazine.com/biology/australian-raptors-start-fires-to-flush-out-prey

http://www.bioone.org/doi/abs/10.2993/0278-0771-37.4.700

#161 Prematurely Banned Canadian Millenial on 01.21.18 at 11:57 pm

BANNED

#162 William on 01.22.18 at 12:11 am

Yesss Garth I need more on the madness of the Australian property market. It’s absolutely nonsensical at the moment and I find myself treading water while deciding whether to buy an overpriced crap shack.

I hope you’ll provide further analysis on it in the future.

#163 Russ on 01.22.18 at 12:43 am

dr. talc on 01.21.18 at 9:03 pm

Australia cancelled the carbon tax. We are hopelessly passive.

http://www.cbc.ca/news/world/australia-s-carbon-tax-repealed-after-2-years-1.2709642
==============================

Pommies repealing a tax on the poor and our news people at CBC report it as a bad thing. Typical.

Only the Queen can come up with a better system for taxing the poor than our carbon tax.

In B.C. the carbon tax amount is subject to Provincial Sales Tax.
Great eh!

Remember your Star Trek trivia, we are carbon based life-forms.

#164 Dolce Vita on 01.22.18 at 12:59 am

#59 Happy Housing Crash Everyone!

A very astute observation:

“As long as the Bank of Mom can continue to finance first time buyers with large equity extractions via HELOCs, the party will continue.”

Agree, but how long can this last?

As rates go up and prices go down, the HELOC extractions will be called in once the Big Banks get the slightest wiff of their “RE assets” being eroded on their Balance Sheets.

Assets go down, then so do Liabilities & Equity; thus, the quick fix is to increase cash flow on the Asset side while they sort out the Asset mess they have gotten themselves into.

These well meaning, bequeath wealth now and instead of upon death, parents will pay for their irresponsible EXTEND & PRETEND hubrous ways THIS year. Paying up will be a bitch.

Still say 25% drop by the end of the “non event” April-May RE season and more by year end, you too Camelot (a.k.a., YVR RE).

#165 Smoking Man on 01.22.18 at 1:09 am

Guess who Hajab Hoax mom works for.

Wait for it… Kathleen Wynee. Obviously an election year.

https://www.zoominfo.com/p/Shamiza-Baig/-1864662008

#166 Howard on 01.22.18 at 2:50 am

That is insane! So if I understand correctly, it’s practically impossible to truly lose money in Australian real estate because if the property does incur a loss, you simply deduct it from earned income thereby allowing you to lower your income taxes for many years. So at worst you break even iver (minus any transfer taxes etc).

In that scenario, why wouldn’t you buy? The Australian government has made it almost risk free.

#167 Midnights on 01.22.18 at 3:22 am

Media and Trump bashing….
http://brucewilds.blogspot.ca/2018/01/news-and-talk-shows-obsessed-with-trump.html?m=1

#168 CanadaianOne on 01.22.18 at 3:24 am

This from an immigrant of 20 years in North America. 3 in US 17 and counting in Canada….

SCM shouldn’t just be banned from this blog but from this country for dissing IT as well.

…descending from a war/military/enforcement family I can’t see how future filled with the ilk of SCM would be of any help to this GREAT COMMUNITY OF CANADA.

You can point to all that is wrong with this place…. but you can be at peace here.

M40AB

ps. Comments not geared towards millennials or others in general who respect Canada.

#169 maxx on 01.22.18 at 6:17 am

#40 Screwed Canadian Millenial on 01.21.18 at 5:07 pm

“It was a joke Garth. Why so mad?

You tried, purposefully, to embarrass me and demean this blog. On second thought, you are gone. – Garth”

Please Garth, accept my unconditional vote to block this pathological, boomer-hating trash from this unique and excellent blog – forever.

#170 Rob JM on 01.22.18 at 7:11 am

Us Aussies take stupid to a whole new level.
Take negative gearing on housing, when you make a loss you only get to claim a portion of it back, ie your tax rate. You still loose at least 53c in the $. The RE industry has successfully advertised it as a way to avoid paying tax, yes buy investing in a loss making rental property. At the present time 70% are claiming a loss on their properties at tax time. In recent times about 50% of purchases have been investors using interest only loans and leveraged equity deposits. The majority of 1st home buyers have only been able to purchase with help from family because they cant get a deposit together. The two Biggest Markets of Shitney (14 X median income to price) and Hellbourne (10X) have doubled their populations in the last twenty years but have invested nothing in public infrastructure. Because of the Massive Immigration, wages have been falling in real terms for the last 5 years while RE has seen double digit growth. We have now hit 200% Houshold debt to GDP! Fortunately it looks like the crash is finally here as China has cracked down on capital flight and the Chinese are realising the Aus is just taking them for a ride with shoddy everything. The debt reckoning is upon us!

#171 Julian Fantasino on 01.22.18 at 7:34 am

#156 Lost…but not leased on 01.21.18 at 10:39 pm
………
GOOGLE: “Dr Mary’s Monkey”…the truth will set you free…(after the initial freak out)…
*******

That case was bungled, it was clearly a suicide.

Are ads ok here?

Fantasino’s for all your needs
no stems, no seeds
( cops keep the primo ;-)

#172 Loonie Doctor on 01.22.18 at 7:58 am

#118 Mathman

I was just making a joke. You can’t take me too seriously. I agree that any country that has naturnal wild areas will have the natural hazards that go with them. Both countries are fortunate to still have these areas in abundance. We actually saw a Massasauga rattler on the Bruce Peninsula last year while hiking (after 30 years of keeping an eye open!). The hazards of inflated real estate, on the other hand, are man-made and much more commonplace.
LD

#173 Elcheapo on 01.22.18 at 7:58 am

Long time reader, once-a-year commenter,

Banned SCM eh? Too bad. He was a tiny bit unpredictable in his opinions, unlike the boring and predictable Smoking Man. Also the links he provided to backup his arguments were from legitimate news and government sources, and not whacked out YouTube videos and tinfoil-hat-wearing Breitbart enthusiasts whose lives are so bereft of meaning they seek out validation via anonymous internet postings (SM excepted again- I respect the fact he revealed his true identity…..hmmm maybe I take that “boring and predictable line back ;)

Anyhow, I for one will miss SCM.

#174 TurnerNation on 01.22.18 at 8:06 am

#159 Ace Goodheart best idea would be turning this house into a garage then building a nice house in its expansive backyard.

But the NIBMYs and marxist City govt never would allow. You see UN-approved “density” means 400 sq foot shoeboxes in the sky; not enhancing home for community and family.

Think about that, we have no property rights. Might as well squat where you sht, to sayings. That is, to rent anyway. We own nothing.

#175 Howard on 01.22.18 at 8:10 am

I realize he’s banned but, SCM, if you want to move to Australia you can acquire a Working Holiday Visa provided you are still 30 or under. They’re easy to obtain and I think they last 2 years (depends on the country). You are then free to live and work there (non-perm positions). From there you can search for a permanent role and obtain long-term residency.

If older than 30, much much more difficult (as it is to get into Canada).

New Zealand’s WHV cutoff is 35 rather than 30. So if you’re 31-35, that’s an option too.

#176 TurnerNation on 01.22.18 at 8:11 am

#166 Smoking Man someone pointed out the CBC ran the story literally one hour after it supposedly took place. It was all a set up.
Slowly people realize most of our news online is A.I. generated (they know us better than do we) and/or from a daily script of talking points.

(Remember: in Kanada you get a voice…or a job…based on what you might be wearing on your head; what’s in your pants; and also bedroom preferences. Nothing can so be of more importance)

#177 crowdedelevatorfartz on 01.22.18 at 8:18 am

I was away for a day.

Did I miss anything?

#178 Jorge on 01.22.18 at 8:21 am

Some anecdotal evidence from Montreal. In Montreal right now, prices in West island are over $500,000 for decent homes now, and in areas like St-Lambert, even $500,000 will only get you a tiny 1000 sq.ft home. Closer into the city? Forget it. Houses and duplexes in NDG and other areas closer in will cost well over $1,000,000.

We visited two open houses in the West island over the weekend. The first one we visited was an old 1940s house near the old Pointe-Claire village, listed at $500,000. Old layout, ceiling too low for 6ft me, and badly done renovations using cheap materials and LED/fluorescent lights turned us off.

The second house was nicely done. Two full stories and a renovated basement, four full bedrooms on the upper floor (NOT in the basement!), ensuite bathroom, and everything renovated nicely. $549,000 if I remember correctly.

I was feeling that paying $500,000 and over was insane in Montreal, given we have higher taxes and lower income than the other provinces. Now that I see what people are trying to pass off at those prices, a good two-story detached is starting to look like a good deal. For similar housing I see others asking for $700,000+, so I guess this guy wasn’t as greedy.

Hope you can cover the Montreal market at some point.

#179 Dobermanduke on 01.22.18 at 8:24 am

A friend of mine lives near Brisbane. His house is up for sale. No auction though. He said only 20-30% of houses sold by auction.

My understanding is that in the cities it is a far higher proportion. – Garth

#180 Gravy Train on 01.22.18 at 8:42 am

There’s a castle for sale in Calgary for $1.75 million.
https://luxuryresidence.ca/2018/01/20/theres-a-castle-for-sale-in-calgary/

#181 Tater on 01.22.18 at 8:53 am

#27 Toronto Tim on 01.21.18 at 4:28 pm
Garth,

Without any further changes, what this indicates is that Toronto still has a lot of room to run to get anywhere near Australia levels.

In Toronto, the number of high earning two income families is mind blowing. Private clubs have multi year wait lists. Top golf clubs have 10 year wait lists.

The accounting firms have promoted more partners this year in Toronto then any other year. Same goes for consulting firms. The banks and insurance companies are producing enormous bonuses and stock based compensation for their staff.

And many are awaiting the largest intragenerational wealth transfer as boomers pass on wealth to their children, well before they pass.

I think you are providing bad advice.
—————————————————————–

Cut-off to be a 1%’er in Toronto is about 300k. Average detached is worth about 1.2m. Soooo, the top 1% of income earners can buy a slightly above AVERAGE house. That doesn’t seem sustainable, does it?

#182 Graphic Graphics on 01.22.18 at 8:53 am

Some housing price data in an easily digestible format (Flop take note).
Only goes up to 2012, but I can foresee a bump in the road ahead. Call me psychic.

http://news.buzzbuzzhome.com/2017/03/canadian-house-prices-since-1921.html

PS
I have some stock charts too if anybody cares …..

#183 LivinLarge on 01.22.18 at 8:59 am

“George Carlin said it. It’s also technically incorrect. To be correct, he should have referred to ‘mean’ intelligence, not ‘average’ intelligence.”…someone needs a LOT more fibre in their diet.

#184 Smoking Man on 01.22.18 at 9:03 am

#177 TurnerNation on 01.22.18 at 8:11 am
#166 Smoking Man someone pointed out the CBC ran the story literally one hour after it supposedly took place. It was all a set up.
Slowly people realize most of our news online is A.I. generated (they know us better than do we) and/or from a daily script of talking points.

(Remember: in Kanada you get a voice…or a job…based on what you might be wearing on your head; what’s in your pants; and also bedroom preferences. Nothing can so be of more importance)
……

It’s reprehensible. Putting a little kid in that position in another attempt to divide Canadians all in the name of holding onto power. There was very little racism in the Canada I left behind. The liberals seem to want to fuel it with everything they have.

Disgusting, immoral, and down right evil.

#185 Tater on 01.22.18 at 9:32 am

#141 Toronto Tim on 01.21.18 at 9:44 pm
To the deluded,

A detached home in a great neighborhood in Toronto is supported by rising incomes.

All this talk about average incomes in Toronto and average home prices is delusional.

Yes, as the city grows, the average Torontonian can afford a condo or move to the suburb/exurb. The average person in Toronto cannot afford a single detached home. And definitely not in a good school district near the subway. There aren’t many of those homes and will only be reserved for the successful.

Look at the average income in rosedale. 800k – average house price is 4million. Only price/income of 5x. And there is little mortgage debt in that neighborhood.

The Kingsway average household income is 700k. Average house price is 3m. Just above 4x price/income.

The takeaway is, Toronto is a city where you can make it big. And, if you do, the house prices are not out of reach relative to what you can earn. In what other city can people make that kind of money and only on 4-5x income to live in the best neighborhoods?

Instead of hoping for lower prices, instead the focus should be to take advantage of what Toronto offers and make more money.

And if you can’t make it big in the city then move to Ottawa. You can work for the government and have a decent lifestyle.

No more whining and waiting.
—————————————————————–
Here’s a 4mio listing on the Kingsway. Average household income in the neighborhood is 204k. Do you have to try to be this wrong?
https://www.realtor.ca/Residential/Single-Family/18978951/9-THE-KINGSWAY-Toronto-Ontario-M8X2S9-Kingsway-South#v=n

#186 Senta on 01.22.18 at 9:47 am

“The CRA will not allow an investor to deduct rental real estate losses from employment income on an unrestricted basis, as in Australia. There must be a reasonable expectation of profit in order for losses to be allowed – thus, it’s temporary. – Garth”
I have done that upto 7 years with no issue. Rented a condo to my MIL . Deducted losses (incl. interest) from employment income. In 7 years condo appreciated over 50% and then sold. Good strategy if you have high employment income and a good tenant. You can rent to your adult children etc.

#187 Jorge on 01.22.18 at 9:48 am

Just to follow up on my last comment — it appears that the mainland Chinese families are starting to show a lot of interest in the housing here too, particularly in areas in the West island. At both open-houses, at least half the visitors were Chinese families looking for a home. However, when I asked the realtor at the second home who made the offers, she said it was by locals — “surprisingly”, in her words. Many of us are tired of living in condos and apartments and looking to start a family.

I think this supports Garth’s viewpoint that locals are primarily responsible for the speculating and price bidding, and at least here in Quebec, most immigrant families are solidly middle-class and work hard; neither poor nor super rich.

I’m still scratching my head at which force will prove to be stronger: B20 and rising rates, or the improving economy and increasing inflation.

——————————————————————

#179 Jorge on 01.22.18 at 8:21 am

Some anecdotal evidence from Montreal. In Montreal right now, prices in West island are over $500,000 for decent homes now, and in areas like St-Lambert, even $500,000 will only get you a tiny 1000 sq.ft home. Closer into the city? Forget it. Houses and duplexes in NDG and other areas closer in will cost well over $1,000,000.

We visited two open houses in the West island over the weekend. The first one we visited was an old 1940s house near the old Pointe-Claire village, listed at $500,000. Old layout, ceiling too low for 6ft me, and badly done renovations using cheap materials and LED/fluorescent lights turned us off.

The second house was nicely done. Two full stories and a renovated basement, four full bedrooms on the upper floor (NOT in the basement!), ensuite bathroom, and everything renovated nicely. $549,000 if I remember correctly.

I was feeling that paying $500,000 and over was insane in Montreal, given we have higher taxes and lower income than the other provinces. Now that I see what people are trying to pass off at those prices, a good two-story detached is starting to look like a good deal. For similar housing I see others asking for $700,000+, so I guess this guy wasn’t as greedy.

Hope you can cover the Montreal market at some point.

#188 ozy - It must be the AUSSIES :) on 01.22.18 at 10:01 am

1. ha! It must be the AUSSIES :) driving prices in Toronto, we have plenty. Show of hands guys!!!!

New LTT tax is needed 100% of property value

This is how governments end-up dissolved in the future. Who needs those???

2. Good catch Garth mate… I bet Kanatian Association Of Agents will be quick to introduce open-bidding style in Kanata by March. Problem solved. Buy now or be priced-out F.O.R.E.V.E.R. :)

#189 Oz guy on 01.22.18 at 10:07 am

The theory with negative gearing is that owners are incentivized to add to the rental pool. With the loss the owner takes each week for tax incentives, theoretically reduces rental rates. But it’s clearly failed and inflated the entire market.

#190 Keith in Rio on 01.22.18 at 10:10 am

The liberal left wing news machine in “Kanaduh” (or for that matter anywhere around the world) is merely no different than the “state organs” as referred to by Josef Stalin. They are “useful idiots” at best, simply nothing more than “presstitutes”.

The Global News Network, one of the largest organizations in Canada, is commonly now referred to by many I know as……..”The Goebbels News network”…….heh.

#191 Keith in Rio on 01.22.18 at 10:14 am

Gravy Train…….

That castle you refer too has been for sale forever with different realtors.

It is in Mount Royal, on one of the best streets, which is smack in the middle one of the toniest and wealthiest districts in the city……and it is an enormous eyesore that needs to be torn down ASAP. Problem is, it has a historical designation, so you can’t touch the POS.

#192 Lee on 01.22.18 at 10:18 am

#182 Tater

There are 2,600,000 people in Toronto. About 2,000,000 are adults. One percent of this is 20,000. Most of these people already have a house. Toronto has over 300,000 fully detached single family homes. How is it exactly that 20,000 people, many of whom are married to each other, will sustain 300,000 FTSFHs? Not to mention the many, many, million dollar semis, towns, rows and condos. 20,000 people just don’t go as far as they used to. I also think you are pushing it to say the 1% group makes $300,000 a year. This may be true in the USA but not here. I think the average may be in the mid $300,000s here among the 1%ers, but to get into the group I think it is closer to a $250,000 income. Most of this is fully taxable.

#193 Victor V on 01.22.18 at 10:22 am

IMF raises 2018 Canadian growth forecast to 2.3%

https://www.bnn.ca/imf-raises-2018-canadian-growth-forecast-to-2-3-1.974900

WASHINGTON — The International Monetary Fund is raising its estimate for economic growth in Canada this year.

The think tank says it now projects Canada’s economy will grow 2.3 per cent this year, up from an estimate of 2.1 per cent in October.

Growth for 2019 is forecast at 2.0 per cent, up from an earlier projection for 1.7 per cent.

#194 Bad Cowboy on 01.22.18 at 10:26 am

So, I read today in BNN News that Trudeau Liberal paid 40 million to suppress information on foreign ownership. Hey, don’t ‘racist’ me. I just read the worlds newspapers.

#195 aa5 on 01.22.18 at 11:02 am

If banks are willing to lend any amount of money to anyone, no questions asked.. Then there is no limit to what people can pay.

For example I could pay $100 million for a 3 bed 2 bath house, as long as the bank approves my loan for $100 million.

In order to make the 1st year’s mortgage payments, I would need to borrow more money. But assuming my house went up 10% to $110 million, that should not be a problem to borrow some against my new found equity.

#196 TurnerNation on 01.22.18 at 11:07 am

Pile into Home Crapital stock here boys.
Time for Sub Prime Slime for Buffet’s desert.

#197 Bytor the Snow Dog on 01.22.18 at 11:11 am

@123 Another Deckchair- You’re not wrong. I’ve done the same calcs myself and the ROI isn’t worth it.

@127 stage1dave- How do you make a small fortune?

A: Take a large fortune and go racing.

This helpful joke can also be used in many other situations like boating, or for men, marriage and divorce.

Re: SCM- I don’t like bannings but if you want your neocon echo chamber I guess you got it. Must have been one heluva comment.

#198 LivinLarge on 01.22.18 at 11:35 am

Stafe1dave…thank you for the info. I thought it was 7 years but my memory of the time limit was 1995 and I didn’t want to spew something only to find it’s changed in 23 years.

Senta…”I have done that upto 7 years with no issue. Rented a condo to my MIL . Deducted losses (incl. interest) from employment income.”…again, you got away with it and that doesn’t mean it was legitimate or propper. Putting stuff into a tax return is easy and since the CRA automated imput system only checks for computational errors, “getting away with it” initially does happen. The audit system is where the actual compliance with the law is tested. That you weren’t audited is fortunate for you at least for now. If the last year you did this was more than 7 tax years ago then maybe you’re out of the woods. If not, don’t exhale until it is 7 tax years.

With all the evidence of CRA much preferring to target the little guy who doesn’t have the stomach or resources to lawyer up and dispute a reassessment, you are a preferred target for a desk audit.

#199 For those about to flop... on 01.22.18 at 11:37 am

Ronaldo on 01.21.18 at 11:12 pm
#144 Flop

Hey Flop, just to let you know, I have just made a donation to the Terry Fox Foundation. I challenge anyone else to do the same. Keep up the good work.

http://www.terryfox.org/get-involved/ways-to-give/

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

Morning Ronnie,thanks for the donation.

Flop For Fox Fund…

M43BC

#200 Periscope on 01.22.18 at 11:37 am

This from Horgon “To that end B.C.’s NDP Premier John Horgan made news this week when he took a firm stand and said: “What we know with absolute certainty is money raised in other parts of the world is distorting our housing market, and we want to take steps to address that.” If he does I will vote NDP, and if he doesn’t I will vote green. This crazyness needs to end.

You are a fool if you believe any of it. – Garth

#201 For those about to flop... on 01.22.18 at 11:44 am

Here we go…

M43BC

“ICO Frenzy: Top 10 Offerings Raised $1.74 Billion In 2017

Initial Coin Offerings (ICO) took off in 2017, as crypto-fever continues to reach new heights. This relatively new fundraising method has captivated companies ranging from startups to large-cap enterprises. The cryptocurrency craze in 2017 led to over $5 billion in fundraisingfrom a little more than 706 ICOs. While there were many different ICOs that are worth mentioning, we set out to highlight the top ten of 2017 by funds raised.

Using key sources: tokendata.io, icodrops.com, coinschedule.com, and coinspeaker.com, we were able to accurately determine the true top ten ICOs of 2017 by funds raised. Using hot air balloons, we placed the ICOs with the highest amount of funds raised at the top and with the largest-sized balloons. As you go down the visual, the balloon sizes shrink as the amount of funds raised by the ICOs decrease. This clearly shows how dominant the top ten ICOs were in their ability to attract investor capital in 2017.
According to the hard data, the top ten ICOs by funds raised in 2017 generated a total of more than $1.74 billion. Hdac was the number one ICO, which raised $258 million. Filecoin was a close second with $257 million in funds raised. Together, Hdac and Filecoin account for $515 million or 30% of the total $1.74 billion raised.

Tezos was the third highest grossing ICO of 2017 with $232.32 million and EOS’s stage 1 offering generated $230 million. Tezos and EOS raised impressive amounts of money in their ICOs, as both infrastructure businesses accounted for 26% of the total $1.74 billion raised. Overall, this means that the top four ICOs of 2017 have generated more than half of the top ten’s total funds.

Infrastructure companies did very well in their initial coin offerings last year. Seven of the top ten coin offerings were backed by infrastructure businesses, which shows that the industry is currently in high demand among investors. Of the remaining businesses, two operate within trading & investing and one in data storage.

Top 10 ICOs in Terms of the Amount of Funds Collected in 2017
1. Hdac (infrastructure): $258 Million

2. Filecoin (data storage): $257 Million

3. Tezos (infrastructure): $232.32 Million

4. EOS Stage 1 (infrastructure): $230 Million

5. Sirin Labs (infrastructure): $157.90 Million

6. Bancor (infrastructure): $153 Million

7. Polkadot (infrastructure): $144.3 Million

8. QASH (trading & investing): $108.20 Million

9. Status (infrastructure): $107.60 Million

10. Comsa (trading & investing): $95.60 Million

Total Funds Raised By Top 10 ICOs in 2017: $1,743,920,000

Overall, ICOs saw a monumental year in 2017, as the funding concept began to go mainstream. This year is positioned to be another major milestone for ICOs, as companies continue to jump on the bandwagon. Infrastructure, trading & investing, and data storage companies raised the most money in 2017, but what will dominate the top ten list for 2018?”

https://howmuch.net/articles/top-10-icos-2017

#202 Paid Piper on 01.22.18 at 11:47 am

Oh happy day. Oh happy day.

#203 WillinSC on 01.22.18 at 11:56 am

Just heard the news. thank you Mr. Turner will now return to reading comments.

#204 Howard on 01.22.18 at 12:00 pm

#69 -=jwk=- on 01.21.18 at 6:12 pm

A made up poster boy with very limited intellectual capabilities and very unimpressive resume rises to power with the help of rich elite donors and the prestutute press.

That was Harper. We have a new guy now. Someone who actually had a job before politics.

————————————-

How could Harper have gone without a job? He was born a family of modest means. He did get involved in politics fairly young because his talent was recognized but it’s not as if he was handed anything without merit on the basis of connections.

Intellectually, I would say Trudeau is sort of like a left-wing Sarah Palin but that might be unfair to Mrs. Palin who is at least self-made.

#205 troutfishingincanadashorty on 01.22.18 at 12:01 pm

please keep the smoker he’s just a thompsonesque derivative anyhow and occasionally entertaining.

#206 Tater on 01.22.18 at 12:04 pm

#193 Lee on 01.22.18 at 10:18 am
#182 Tater

There are 2,600,000 people in Toronto. About 2,000,000 are adults. One percent of this is 20,000. Most of these people already have a house. Toronto has over 300,000 fully detached single family homes. How is it exactly that 20,000 people, many of whom are married to each other, will sustain 300,000 FTSFHs? Not to mention the many, many, million dollar semis, towns, rows and condos. 20,000 people just don’t go as far as they used to. I also think you are pushing it to say the 1% group makes $300,000 a year. This may be true in the USA but not here. I think the average may be in the mid $300,000s here among the 1%ers, but to get into the group I think it is closer to a $250,000 income. Most of this is fully taxable.
—————————————————————–
Not sure you understood my post. I agree that prices have detached from incomes in the GTA. As for my source, here it is: http://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dv-vd/inc-rev/index-eng.cfm

#207 bdwy sktrn on 01.22.18 at 12:21 pm

for the flop…
(btw this month broke new records in my hood 2.5 for 33′ lot and 2.2 for 25′)

https://www.zolo.ca/delta-real-estate/1772-55-street
1.07

https://www.zolo.ca/vancouver-real-estate/6626-inverness-street
1.555

https://www.zolo.ca/delta-real-estate/11231-64a-avenue
1.17

https://www.zolo.ca/burnaby-real-estate/3041-noel-drive
1.215

https://www.zolo.ca/richmond-real-estate/9551-kirkmond-crescent
2.050

https://www.zolo.ca/vancouver-real-estate/2316-w-21st-avenue
3.76

https://www.zolo.ca/north-vancouver-real-estate/2355-panorama-drive
1.995

https://www.zolo.ca/burnaby-real-estate/6020-malvern-avenue
1.775

https://www.zolo.ca/vancouver-real-estate/2306-w-12th-avenue
2.885

https://www.zolo.ca/port-coquitlam-real-estate/3550-pearkes-place
0.715

https://www.zolo.ca/vancouver-real-estate/2993-w-21st-avenue
???

https://www.zolo.ca/vancouver-real-estate/5540-windsor-street
1.587

#208 New Lurker on 01.22.18 at 12:23 pm

#142 Damifino on 01.21.18 at 9:48 pm

George Carlin said it. It’s also technically incorrect. To be correct, he should have referred to ‘mean’ intelligence, not ‘average’ intelligence.

————

Well, I’d hate to be critical on my first post, but mean and average are the same concept. I think you mean “median.” Which would have been the correct word to use in that joke but not many people are familiar with and may have made the joke less accessible.

#209 Ace Goodheart on 01.22.18 at 12:43 pm

RE: #185 Smoking Man on 01.22.18 at 9:03 am

#177 TurnerNation on 01.22.18 at 8:11 am
#166 Smoking Man someone pointed out the CBC ran the story literally one hour after it supposedly took place. It was all a set up.”

The thing that annoys me most about that incident is that, even after it was revealed to be a hoax, they STILL tried to get mileage out of it. The columnists were eating it up, writing articles, all the while admitting in their articles that, while the incident didn’t actually happen, we should STILL all take a lesson from it (ie, learn from an event that DID NOT occur).

When we are asked to learn from events that did not happen, you know there is a problem. All you can learn from something like that is that journalists need to vet their stories a bit more before they run them.

#210 Leo Trollstoy on 01.22.18 at 12:53 pm

Millenials not smart lol

#211 Steven Rowlandson on 01.22.18 at 12:59 pm

Last night I was talking to a volunteer in the Barrie out of the cold program about real estate. I had to make the point that there is no affordable real estate in Canada. I wasn’t stating an opinion. I was stating a fact or more precisely a law.
What ever it takes to bring people to their senses and real estate prices down to what is affordable it will be severe and brutal and it will have to be a punitive action that never ever stops.
A short sharp shock won’t correct peoples bad behaviour. They would ride it out for a while and then they would be back to their old tricks again. Real estate investors and price inflators need to be stomped on severely everyday for all time.

#212 Mike Sweatman on 01.22.18 at 1:21 pm

You want to see morons? Check out these folks https://luxurybc.ca/tour/ selling “luxury vacations” for foreign home buyers in BC with it expanding across the country…this is just too crazy.

#213 For those about to flop... on 01.22.18 at 1:29 pm

Broadway.

for the flop…
(btw this month broke new records in my hood 2.5 for 33′ lot and 2.2 for 25′)

December Sales.

https://www.zolo.ca/delta-real-estate/1772-55-street
Sold 1.07 Paid 1.14 Loss ,Pink Snow

https://www.zolo.ca/vancouver-real-estate/6626-inverness-street
Sold 1.555 Paid 1.67 Loss ,Pink Snow

https://www.zolo.ca/delta-real-estate/11231-64a-avenue
Sold 1.17 Paid 1.24 Loss ,Pink Snow

https://www.zolo.ca/burnaby-real-estate/3041-noel-drive
Sold 1.215 Paid 1.18 Loss after expenses.Pink Snow

https://www.zolo.ca/richmond-real-estate/9551-kirkmond-crescent
Sold 2.050 Paid 2.01 Loss after expenses.Pink Snow

https://www.zolo.ca/vancouver-real-estate/2316-w-21st-avenue
Sold 3.76 Paid 3.53 Pink Draw

https://www.zolo.ca/north-vancouver-real-estate/2355-panorama-drive
Sold 1.995 Paid 1.97 Loss after expenses,Pink Snow

https://www.zolo.ca/burnaby-real-estate/6020-malvern-avenue
Sold 1.775 Paid 2.01 Loss, Pink Snow.

https://www.zolo.ca/vancouver-real-estate/2306-w-12th-avenue
Sold 2.885 Paid 2.93 Loss, Pink Snow

https://www.zolo.ca/port-coquitlam-real-estate/3550-pearkes-place
Sold 0.715 Paid 830 Pink Snow.

https://www.zolo.ca/vancouver-real-estate/2993-w-21st-avenue
???

https://www.zolo.ca/vancouver-real-estate/5540-windsor-street
Sold 1.587 Paid 1.51 Loss after expenses.This one had two renovations.Pink Snow

Thanks for doing this Broadway.

And so I think I can see the pattern,can’t you?

Even the cheapo at Pearkes Pl took a decent loss.

Anyone who is grateful for this information please make a donation at the Terry Fox Foundation.

Flop For Fox Fund…

M43BC

http://www.terryfox.org/get-involved/ways-to-give/

#214 YVRMC on 01.22.18 at 1:41 pm

For Flop…. done, a good cause further supported, cheers bud…

#215 IHCTD9 on 01.22.18 at 1:45 pm

#123 Another Deckchair on 01.21.18 at 8:55 pm
@73 Long Branch Apprentice;

Heating bills vs. spending on insulation.

Look at your electricity and (whatever utility) bill.

Seems to me (note: with little actual calculating) that utility bills have fixed delivery charge, fixed system depreciation charge, fixed debt repayment charge, fixed union charge (you get the idea)…

The actual amount you’ll save if you halve the use of your electricity will be less than a couple of Tim Hortons’ coffees per month.

Something to think about – maybe the cards are stacked *against* actually spending money to build an efficient place?

Something to think about, and hopefully someone here will correct me if I’m going off on a wrong tangent.
_____

Correct. The Hydro One bill is chock full of misc. fees all bundled into the 2-3 page list of visible charges. If you call them, they will list every single one of them off to you, make sure you’ve got some spare time and a Dictionary.

A simple example is a 200.00 Hydro bill might be 50.00 worth of hydro, with 150.00 being a soup of fixed and floating fees. If you spend 20 grand to cut your hydro useage in half, the 50.00 drops to 25.00, but the 150.00 would only drop to say 115.00 because it is not calculated on your consumption. So after blowing 20 grand on cutting your bill, it goes from 200.00 to 140.00. Not worth it.

Careful with insulation/windows etc – that’s an even bigger bill, 10’s of thousands. I own a very old timber framed farm house with laughable R value and zero wind proofing. To make my place efficient would be insane expensive. Instead, I bought a pellet stove and it keeps us all comfy until -25. I fire up the oil burner a few nights a year as needed. 3500.00 for the stove, and 1300.00/yr for fuel. I’ve heated with it for 13 years now. A well insulated house + Oil furnace would probably run me the same 1300.00 per year to fuel.

I am currently moving to an unconventional DIY solution to cut heating costs to about 250.00/yr.

#216 IHCTD9 on 01.22.18 at 1:55 pm

#33 Screwed Canadian Millenial on 01.21.18 at 4:44 pm

DELETED. Don’t try that again or you will be gone forever.
__________________________________________

Another prediction by Mr. T comes to pass.

Adios pumpkin…

#217 jess on 01.22.18 at 2:05 pm

“influencers with U Tubers

http://www.telegraph.co.uk/news/2018/01/19/hotel-owner-hits-youtube-vloggers-flooded-business-bad-reviews/
this hotel business owner told this “influencer” with 87k /76instagramer NO free weekend
https://www.therecord.com/whatson-story/8085787-youtubers-demoralized-by-monetization-changes/

#218 jess on 01.22.18 at 2:14 pm

“For the first time, solar PV additions rose faster than any other fuel, surpassing the net growth in coal.

https://www.iea.org/newsroom/energysnapshots/world-total-coal-production-1971-2016.html

================
https://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review-2017/bp-statistical-review-of-world-energy-2017-full-report.pdf

World coal production fell by 6.2%, or 231 million tonnes of oil equivalent (mtoe) in 2016, the largest decline on record

China’s production fell by 7.9% or 140 mtoe – also a record decline – while US production fell by 19% or 85 mtoe to 364.8 mtoe, again the lowest level in our dataset going back to 1981.

#219 jess on 01.22.18 at 2:20 pm

Carillion was in dire financial trouble. Why did the government keep awarding it contracts?
good question

Carillion was in dire financial trouble. Why did the government keep awarding it contracts?
Prem Sikka
17 January, 2018 (5 days ago)

https://leftfootforward.org/author/prem-sikka/

#220 Ian on 01.22.18 at 2:34 pm

Ooooh boy dogs, did I ever dodge a bullet!

Some of you might remember my post back in (October?) where I tried to short Home Capital. Scotia wouldn’t give me any.

Tried last Friday again, couldn’t get any. Big green bar today!!

I still think it will turn into a festering pile of dog poo, I just won’t be there for the decline.

#221 LivinLarge on 01.22.18 at 2:58 pm

“Seems to me (note: with little actual calculating) that utility bills have fixed delivery charge, fixed system depreciation charge, fixed debt repayment charge, fixed union charge (you get the idea)…”….hmmm, me thinks the Jack is talkin’ d’day eh?

“Fixed Rate” not “fix (flat) charge” i.e. the “rate” doesn’t vary with the volume consumed. Use less, you pay less for fixed “rate” charges but their rate stays fixed. Otherwise it’s called a “surcharge”.

#222 LivinLarge on 01.22.18 at 3:03 pm

“Well, I’d hate to be critical on my first post, but mean and average are the same concept. I think you mean “median.” Which would have been the correct word to use in that joke but not many people are familiar with and may have made the joke less accessible.”…oy is this “more fibre Monday”?

How many retentive folks do we have here?????

#223 Newcomer on 01.22.18 at 3:11 pm

Given the standards of reasonable expectation of profit in Canadian tax law, it would be very hard for a tax court judge to argue that there was not a reasonable expectation of profit in purchasing real estate in the past ten years with the expectation of future rent rises, particularly if it is not a first purchase (i.e., the entrepreneur is skilled and experienced). I certainly don’t think the expectation is reasonable, but that is neither here nor there.

#224 Prematurely Banned Canadian Millenial on 01.22.18 at 3:36 pm

BANNED

#225 Rexx Rock on 01.22.18 at 3:43 pm

#201
You are fool if you believe it.Remember most politicians are notorius liars,its just in their nature.Just below a lawyer,realtor or a used car salesman.He’s just grand standing,its a well known fact whats been going on since 1986.Accept it, ride the real estate money train.It never stops just slows down once in a while.

#226 Wrk.dover on 01.22.18 at 3:53 pm

Our 900 foot R2000 house is worth the extra if you like to light a fire when it is down to 73 degrees and let it go back out at 81. This takes 4 full size two door pick up truck loads a year of scrap, dead wood or any other dry wood in chunks the size of a 2X4 or 4×4 as long as your forearm. It takes about 12 hours from 81 degrees back to 73 again with no fire. Comfy.

#227 Duke on 01.22.18 at 4:03 pm

#141 Toronto Tim on 01.21.18 at 9:44 pm
To the deluded,

A detached home in a great neighborhood in Toronto is supported by rising incomes.

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

How much do you make and how much is your house worth? How do you know the average income in Rosedale? Those numbers you threw in aren’t par to those from stats-can.

#228 45north on 01.22.18 at 4:08 pm

Flop: sent $30 to Terry Fox Foundation

I pray for the best for you and your family

#229 Bob Dog on 01.22.18 at 4:42 pm

Today I learned that the same financial terrorists pulling the strings on the corrupt puppet government of canada are also pulling the strings on the corrupt puppet government of australia.

Wonderful

#230 For those about to flop... on 01.22.18 at 4:46 pm

#229 45north on 01.22.18 at 4:08 pm
Flop: sent $30 to Terry Fox Foundation

I pray for the best for you and your family.

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

Thanks to the three donations so far.

Obviously won’t affect what’s going on in the other side of the planet but if we can gift a Canadian a week,even one more night with a loved one then that will warm my heart.

Flop For Fox Fund…

M43BC

#231 down_boy on 01.22.18 at 5:38 pm

Some people sure do get upset by what other people spend their money on. If somebody wants to spend $2m on a flea rodeo…all the power to them. As long as it doesn’t encroach upon or harm others, go ahead, you’ll have my admiration for being a free thinker, a little weird, but a free thinker. Caveat emptor. As long as there’s full disclosure—and in those photos above, even the visually impaired are blessed with a nose to discern when they walk into a s___hole. Woof.

Remember, no matter what happens in life, there are always beans. Cheap, wholesome beans. You can grow them in a ditch. Never get discouraged. ;)

#232 Gravy Train on 01.22.18 at 6:24 pm

#13 InvestorsFriend on 01.21.18 at 3:41 pm
“Warren Buffett has written that there are only three kinds of people: 1) those who can count, and 2) those who can[not].”

Actually, the above quote was by George Carlin.

Warren Buffett said, “There are three kinds of people: 1) innovators, 2) imitators, 3) idiots.”

My favourite is this one by Steve Backley: “There are three types of people in this world: 1) those who make things happen, 2) those who watch things happen, and 3) those who ask, what happened?”