So, buy it

So many questions. So little time. Here we go again, despite the fact this blog threatens to turn into a cheap site full of tawdry advice for hormonal moisters or confused wrinklies. Yes, from ETF strategies to real estate predictions, relationship counselling, canine management and dating techniques, it’s all here.

“Love the blog,” says Quentin, in the mandatory suck-up.

“Question. I have a SFD in Kelowna I purchased in November 2017 and yes it was more of an emotional decision that has really got me doing a rethink. I paid $ 385k for it (nice old lady had owned) and I cleaned it up a bit, paint etc. Do I sit and wait or cash out and rent? The big seller right now is anything under $500k still has a chance to sell before the sky falls in. Make 60k clear and stick in a fund .Sounds like a plan BUT the issue is Kelowna rents are now min$1,200 to 1,500 /month + utilities for a one bed room condo or basement suite. My mortgage is $1,800 taxes included /month. Also the dog (10lbs of smarts) loves the yard space, why are rentals so anti-dog? The song “should I stay or should I go” comes to mind. Put me straight Garth, right hook to the chin.”

Yes, Q, K-town is pooched. It’s not coming back until the Dippers are tossed in the next election, along with their insane ‘speculation’ tax. Keeping Kelowna in that zone is capricious and vindictive and will have a tangible impact on the market. Expect to sell for less in a few months, and to have a longer wait for a buyer to show up.

Having said that, why do it? You bought cheap, built sweat equity, have stabilized your living costs and own a detached house for your dog to enjoy which still costs less than a Jiffy John in VYR. Kelowna rents will fall along with house prices, but you are building some equity and not gutting your income. Besides, it’s been proven girls dig guys with houses and dogs who hum The Clash.

“This may be a quick one for you and not as interesting as other stories you are getting from other readers,” says Thomas, corresponding from some soulless street in the burbs.

“I am 40 years working as a consultant with about 200k annual billing. My Inc. pays me and wife total 125k. I have two kids going to school next to my current house. This house was bought in 2013 and now worth 1M. Mortgage (400k) is up for renewal now. Bank is willing to give 500k at 3%. Wife and I have total RRSP + TFSA room of 100K. Since I am planning to keep this house for now (you may not like) until kids are done from this next door school, another 8 years.

“So here is my question, is it worth taking extra 100K mortgage and invest in diversified portfolio? If yes, should I get 100k extra mortgage or 100k as HELOC? Is interest tax deductible?

First, Tom, your income-sprinkling days are over, thanks to Mr. Dressup. The last budget put the kybosh on the ability to split your corporate income with your squeeze, unless she’s making a significant contribution and essentially acting as an employee.

Second, regarding the mortgage, remember that amortized debt is not cool. By agreeing to pay back a mortgage over 25 or 30 years you fork over a whack of interest which is font end-loaded so the lender gets its cut first. So if you borrow some extra for investment purposes it should be in the form of a HELOC. Yes, the rate will be higher (prime plus a half, probably), but you can make interest-only payments, then deduct 100% of that from your taxable income. In fact if you ask the bank can probably structure a mortgage/Heloc combo for you, perhaps at a lower rate.

The big question: should you borrow to invest? The answer: if you understand borrowing increases risk. If you intend on staying invested for a long period and can ignore volatility. If you put the money into the correct assets in the right weightings. If you have some professional advice in structuring the portfolio. And, especially, if she agrees.

“I don’t think I’ve missed a blog post in 6 years,” says Peter, genuflecting quietly.

“I may need talking off a ledge and figured who better to get mocked by than you?  I’m 35 years old and run a small e-commerce company.  I make ~$100K per year on paper with additional funds kept in the business.  I’ve got around $350K in savings spread across a maxed TFSA, some RRSPs, some non-registered and cash, mostly in ETFs; no debt, minimal monthly expenses.  The Fiancé makes around $60K/year with minimal savings.

“That’s the financial side. I’m currently renting with the Better-Half in downtown Toronto a medium-sized one bedroom with two dogs and a cat for a couple grand a month (I know it’s a steal).  That said, we’ve been itching to get out of downtown for quite some time and were considering some farm land north of Port Hope. We’ve got a solid business idea/plan for a sustainable and profitable agricultural operation that will take about 7-8 years to reach full production.

“The land we’re eyeing is 62 acres, 30 of which is cleared. Has a beautiful newer 2 bedroom home and we could probably get it for $850K on the high end. Anyway, my question to you is, do your recommendations regarding abstaining from real estate still ring true when the land is used as a business?  I’ve ran the numbers diligently and realize that it’s probably more beneficial for us to buy the land under a corporation and forego the capital gains exemption in order to benefit from the many years’ worth of write offs.  My hesitation lay on the obviously large initial investment that will gut about 2/3’s of my savings in order to give the city the finger while staying within a couple hours drive of both our families. Advice? All the best and keeping rockin’ it.”

Why would I mock a 30something who is self-employed with an online biz who aspires to having dirty fingernails and wearing wellies while driving the F150 to town for more seed and binder twine? Sounds like a reasonable goal to me and makes a helluva lot more sense than dropping $1.2 million on an urban semi on 17 feet of questionable dirt. Be careful with financing, since some banks will insist on a higher rate for a mortgage on rural property or anything to do with agribusiness. No way you’ll qualify for a rate subsidy until the business has proved itself, ditto for property tax rebates and other farmerly incentives.

Buying through a corp is a bad idea. Accounting fees are high, the capital gain tax exemption on the house will be eliminated and you’ll have to claim a taxable benefit for living on the property. Plus there are not really any costs that you cannot write off through a sole proprietorship, which costs nothing to set up or maintain accounting for.

Ah, just one question. Is this a weed ranch?

126 comments ↓

#1 dakkie on 03.28.18 at 5:53 pm

Kooky Real Estate Prices in Leading Global Cities

http://www.investmentwatchblog.com/kooky-real-estate-prices-in-leading-global-cities/

#2 heo on 03.28.18 at 5:54 pm

She hit the jackpot with him, makes 60K and saves nothing while he makes 100K and had lived like a monk saving up 350K.

Get it girl, spend his cash.

#3 Tom on 03.28.18 at 5:55 pm

First!

Interesting info on the last question. I thought about buying land in Niagara to grow grapes. Climate change, while bad overall, should give us California style juice in the next decade or so.

#4 Penny Henny on 03.28.18 at 6:00 pm

Hey Garth here is a new business idea!
Sell the email list of those who post comments here to a psychiatric clinic. Here is the key though, don’t ask for any money up front, just 20% of the net.
You’ll be richer than you think!

#5 friend to cats on 03.28.18 at 6:01 pm

She hit the jackpot with him, makes 60K and saves nothing while he makes 100K and had lived like a monk saving up 350K.

Get it girl, spend his cash.

#6 Jungle on 03.28.18 at 6:07 pm

Lol it’s weed farm for sure.

#7 I’m stupid on 03.28.18 at 6:10 pm

Why should I compromise to accommodate others but they don’t need to compromise to accommodate me?

Here is my dilemma, I went to my wife’s friends place for dinner. The couple are vegans so I knew I was screwed. Just as I anticipated, I was served the most disgusting meal I’ve ever eaten. I was only able to eat half the plate I was served, I held back vomiting 4 times.

If these people come over for dinner I wouldn’t serve them non vegan food so why do I need to eat vegan food? Why should I accommodate there choices when mine are being ignored? I told my wife to tell anyone that wants to invite us over that I’m a meatatarian, if they don’t like it to [email protected]@@ off.

I ran through the farm after we left, I got a beef burger with pork bacon, and chicken fingers.

#8 MF on 03.28.18 at 6:12 pm

“Ah, just one question. Is this a weed ranch?”

….cringe….

MF

#9 Canadian in LA on 03.28.18 at 6:13 pm

“Ah, just one question. Is this a weed ranch?”

Hot damn GT… I love you more with each post.

#10 acdel on 03.28.18 at 6:18 pm

Good Blog Garth (although I guess I am considered a suck up); very wrong on that observation, I just appreciate that you allow us to voice our frustrations, hey, what a concept, it is democratic, being offered by one who cares!!

Next election people, just vote!! The special interest quacks are wearing us down not to, don’t fall for it!!

#11 FOUR FINGERS WATSON on 03.28.18 at 6:28 pm

Some Kelowna homeowners have seen the value of their homes shoot up by nearly 50 per cent in just one year.

According to data from the Canadian Mortgage and Housing Corp., the average price of a single-detached home in the city rose 45.8 per cent during the past year, eclipsing $1 million.

The CMHC says that, as of February, the average single-detached home costs $1,104,941, compared to $757,649 in February of 2017.

What were u saying about Kelowna Garth ?

#12 Whatcha Minnie on 03.28.18 at 6:33 pm

To keep in touch with my friends I will normally be on my way to meet them. I usually do not have lunch at home on Saturdays as I go out with my friends. We will go window shopping and have our meals there too. I prefer eating KFC with my friends compare to eating lunch alone at home as I can talk gags to my friends, we laugh together and have a whale of time at the fast food outlet. Then, we will continue our shopping trip.

#13 Zapstrap on 03.28.18 at 6:38 pm

#8 Canadian in LA on 03.28.18 at 6:13 pm

“Ah, just one question. Is this a weed ranch?”

Hot damn GT… I love you more with each post.

I thought it was a monkey ranch.

#14 NOSTRADAMUS on 03.28.18 at 6:38 pm

BANKER BUZZSAW.

2016- Bankers basically giving money away with 2% mortgages and the only qualification being able to fog a mirror, loan approved. And to tap into a HELOC all a borrower had to do was to duke, dodge, juke and jive out of such a minor entanglement of actually being able to repay a loan. Banker Bob was supportive and showed no fear, and why should he? Real estate was the only game in town, just like monopoly. When you own all the property you win the game.
Fast forward to 2018.
Banker Bob is long gone. The borrower is now dealing with a Banker called Buzzsaw. And Buzzsaw is working overtime grinding and sparking as he works to whittle down the log jam called your debt load.
Fear not yee faint of heart, for the” Dead Real Estate Market Generals” , are predicting in loud unison, calm waters ahead, smooth sailing, don’t panic. Stay the course. Meanwhile Banker Buzzsaw is chewing up the last of the lifeboats.

#15 acdel on 03.28.18 at 6:39 pm

#3 Penny Henny

Perhaps being judgmental; in which I will admit that I am. Maybe it is time for a change from us regular posters and understand what is really going on.

Most are scared, frustrated, being lied to, financially strapped, although many on this blog are millionaires in which I find hard to believe, actually I think that they are full of shit!

We all know that we are being played, one region against the other or one resource against the other, when overall when we look at the big pic we are frustrated by the lies. Time to not waste one’s energy (including mine if all of you feel that way) on the negative bullshitters! Go with that Gut feel and dam the rest!

#16 Smoking Man on 03.28.18 at 6:41 pm

Ouch!

https://betterdwelling.com/greater-toronto-real-estate-sees-largest-drop-in-demand-across-canada/?utm_medium=pushnotification&utm_source=browser&utm_campaign=BD_Push

#17 Guy in Calgary on 03.28.18 at 6:43 pm

Weed ranch… the best ranch.

Good for him and her. Living the dream I was too chicken to pursue. Maybe one day. Much respect… if you go through with it that is.

#18 Paul on 03.28.18 at 6:48 pm

Kelowna’s the new Vancouver.

https://www.castanet.net/edition/news-story-222317-1-.htm#222317

#19 arfmoocat on 03.28.18 at 6:48 pm

“Ah, just one question. Is this a weed ranch?”

No, it’s a pot farm

#20 Doghouse Dweller on 03.28.18 at 6:51 pm

Driving F150`s to and fro in the Canadian hinterland ! One wouldn`t survive long picking blue berries , with gas at 1.30 a liter .

American gas 91 cents a liter ! What excuses can they possibly
dream up for a 44% price gouge ?

Well seasonal maintenance, taxes, transport costs ,Chicago wholesale price, you know all the same BS we have been fed for years, here in Mr. Dressup land.

#21 acdel on 03.28.18 at 6:54 pm

lol, well dogs, what do you think??

http://nationalpost.com/news/canada/the-government-is-cracking-down-on-people-in-vancouver-who-pay-cash-for-150000-cars

#22 jess on 03.28.18 at 7:02 pm

“It’s asymmetric warfare,” Williams says. “If I can spend $1 and force you to spend $10, that’s the Cold War all over again. That’s how we won.”

https://www.motherjones.com/politics/2018/03/the-2020-census-is-a-cybersecurity-fiasco-waiting-to-happen/

#23 BMan on 03.28.18 at 7:02 pm

Lol Epic!!!!!!

Now Pete put us all out of misery and answer it pls……….is it really a weed ranch?

#24 The Big Money Laundering Report is Out on 03.28.18 at 7:04 pm

Re: #17

That is right! 250-300k in price appreciation on every SFD I have seen there.

And the mayor has the balls to fight the spec tax or any other tax preventing this from blowing higher, so, that it can go even higher.

Same story. Business will disappear in several years.

We might as well start calling them the proper name. Ghost cities walking. All money, all building, no working class people.

BC

#25 The Big Money Laundering Report is Out on 03.28.18 at 7:07 pm

This guy in this post must have emailed Garth 9 years ago and he is just getting around to reading it.

Because a Rutland condemned dump goes for over 650k right now in Kelowna.

350k will get you a crappy lot wayyyy out.

Remember, Kelowna has Lake City casino and everybody in the real estate business knows how much dirty money flowed into Kelowna up until last year.

This house is $340,000. – Garth

#26 Summerland - RV park, farm sells for $8M on 03.28.18 at 7:11 pm

ALR loophole still open.

Could not confirm buyer? Lawyer acting as a director on the numbered company to keep the foreign name hidden.

Dirty money? You better believe it.

https://www.castanet.net/news/Penticton/222221/RV-park-farm-sells-for-8M

#27 Mark on 03.28.18 at 7:11 pm

“Some Kelowna homeowners have seen the value of their homes shoot up by nearly 50 per cent in just one year.”

Probably a dramatic shift to the sales mix. Not atypical of a past the peak RE market. Shame on the CMHC for peddling Realtor propaganda.

#28 Fake News Again on 03.28.18 at 7:13 pm

Alcohol is a poison…..weed is not.

#29 Sam the Sham on 03.28.18 at 7:18 pm

#12 Whatcha Minnie

The one positive thing I can say about your posts is that you don’t describe your bowel movements to us. Thank God!

#30 Newcomer on 03.28.18 at 7:23 pm

#18 Paul on 03.28.18 at 6:48 pm
Kelowna’s the new Vancouver.
——

A million plus in Kelowna seems reasonable. They have a higher average household income than Vancouver.

#31 #11 on 03.28.18 at 7:31 pm

DELETED

#32 For those about to flop... on 03.28.18 at 7:32 pm

Pink Pollen falling in Port Moody.

Featured these guys once before and they just took another 90k off and are down to the exact number they paid back in June 2016.

Been trying to make an exit since last June, to no avail.

No wonder they are Moody…

M43BC

211 Parkside Drive, Port Moody paid 1.89 June 2016 ass 156 now asking 1.89

Jun 12:$2,088,000
Jul 27: $1,988,000
Change: – 100000.00 -5%

https://www.zolo.ca/port-moody-real-estate/211-parkside-drive

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

#33 SoggyShorts on 03.28.18 at 7:39 pm

#7 I’m stupid on 03.28.18 at 6:10 pm
Why should I compromise to accommodate others but they don’t need to compromise to accommodate me?
*************************
It’s too bad they have no idea how to cook then. Some of the best meals I’ve ever had were vegan. You can even buy vegan stuff that wins taste tests from any grocery store.

One thing you may not be aware of is that most vegans aren’t doing it for the taste or the fun of it.

Would you demand that a muslim cook bacon for you when you visit their home? Veganism is arguably more understandable than religious dietary restrictions, because there is proof that they are right. Even if you don’t care about the lives of livestock, meat and dairy consumption is pretty bad for the planet, and there is no disputing that.

Think of it more like recycling- If they recycle and ask you do so at their house, they would also do so at your house.

#34 Forecast on 03.28.18 at 7:40 pm

BC cracks down on money laundering, money flows continue to other parts and target is Alberta. Toronto will feel it too as the cat and mouse game continues.

Hey, Rachel Notley. You going to let the dirty money run wild a bit and ignore it and try and fix those Alberta house prices? It is coming.

I can hear is slithering over the Rockies right now as it hits the exits on BC.

#35 Stone on 03.28.18 at 8:05 pm

#21 acdel on 03.28.18 at 6:54 pm
lol, well dogs, what do you think??

http://nationalpost.com/news/canada/the-government-is-cracking-down-on-people-in-vancouver-who-pay-cash-for-150000-cars

———

Simple. Ban cash transactions entirely across the country. Goodbye money laundering. Goodbye black market under the table. Goodbye bullshit.

#36 Reynolds531 on 03.28.18 at 8:17 pm

The Toronto Star reports tonight the Ontario Liberals have made an election promise to pay for antidepressants for all readers of this blog.

We’re saved!!!

#37 Reality is stark on 03.28.18 at 8:21 pm

Looks like Tesla will be bankrupt in 6 months. You can’t go broke taking a profit. When prices are stupid high you sell. This applies to every asset class including houses or you end up broke.
If you think you need to own a house to get a woman wait until you are 50 (you’ll have a big portfolio by then) then you can have all the 35 year olds you can take to Victoria Secret you want.

#38 acdel on 03.28.18 at 8:27 pm

26 Stone

People would never accept that (well I hope) due to loss of rights, banks salivating at extra fees and oh heck and may as well add government keeping records of every transaction that occurs; meanwhile the so called under ground economy spends billions on products, people demanding a less expensive rate (wink, wink, I know nothing) just give me a better price or else I go else where, familiar real-estate persons (being politically T2 correct, lol), what a farce!!!

I have reached my limit for this evening, thanks Garth and all!

#39 MF on 03.28.18 at 8:30 pm

#28 Fake News Again on 03.28.18 at 7:13 pm

Buddy your name should be “Fake Science Again”

MF

#40 FOUR FINGERS WATSON on 03.28.18 at 8:34 pm

#29 Newcomer on 03.28.18 at 7:23 pm
#18 Paul on 03.28.18 at 6:48 pm
Kelowna’s the new Vancouver.
——

A million plus in Kelowna seems reasonable. They have a higher average household income than Vancouver.
……………………………………..

There is a lot of money in Kelowna, but most of it was not earned here. It came from people who cashed out in The Big Smokes and retired here. Many who live in Kelowna work in the oil patch. Good paying jobs are very few, the economy is mostly tourism and servicing well to do retirees. And they keep on a comin’………..

#41 I’m stupid on 03.28.18 at 8:44 pm

#31 Soggyshorts

I respect your point of view, I’m not asking for the world. I wouldn’t expect a 12oz steak, but I do expect real cheese. At the very least I would want to be reassured that it’s perfectly fine if I don’t like the food. I sat there trying to finish this disgusting meal because I didn’t want to be rude.

#42 TurnerNation on 03.28.18 at 8:45 pm

#1 dakkie congrats on being #1 and finally getting a post through the censor. What utterly subversive material have you for us?

Anyway, from the nasaly-voiced realty blog (also where ersatz blog dog Cramdown now resides) this:

A cool mill for an abode is nothing with rates at 3% , and a couple might have a few hundred k in equity, each unlocked from the respective sale of condos. Homes in Toronto will not be sagging any time soon. BofM backup:

http://torontorealtyblog.com/archives/20713

“This isn’t representative of the whole of Toronto. I’m talking about the core of the 416. Strip away 905, trim the fat from the 416 – and that is the area that’s red-hot.

The six properties that had multiple offers this week had 8, 9, 13, 12, 11, and 5 offers respectively”

#43 Mattl on 03.28.18 at 8:49 pm

Kelowna homes can be had well under a mil. You can get an updated 80s home in lower mission on a 1/3 acre for around 700. Lower end homes, worse areas 500 and under. Go out towards lake country and oyama, half hour to the city you can get a real nice place with some land/lake view for 700ish.

That castanet article is a joke. Homes have gone up fast the past 18 months but median sfh well under 1mm.

#44 april on 03.28.18 at 8:52 pm

Apart from Garth and a few others, not in the real estate business, Hilliard Macbeth has told me “… not to buy a condo in Vancouver now, or ever, for that matter…”. “… the condo unit cannot gain in value while the building is depreciating, except temporarily in a housing bubble like we have now”. ” The compression that happens during a correction, as we are staring to see now, happens at the expensive end first and then spreads down into average-priced homes eventually”. He gives the signs to watch for when it is over. I wouldn’t want to have bought a home, especially a condo, in the last couple of yrs in the LowerMainland BC.

#45 Spectacle on 03.28.18 at 8:56 pm

Tonight reminds me about the old farming Joke::

An old seasoned farmer wins the million dollar lottery. The media asks him,
“Wow, what are you going to do with all that money?”

He replies,
“Oh, guess I will keep on Farming until it’s all gone too!”

#46 Life in the burbs on 03.28.18 at 9:03 pm

In reference to the downtown Toronto core being ugly with multiple offers it really is no surprise. Sheep can lustfully be lead off a cliff with the right leader. If Torontonians have not gotten the message about RE it’s no surprise really. RE has been an obsession in TO for the last twenty years! Did you actually think that all of a sudden people were going to just throw up their hands and say blissfully “your right Leaside houses really are not worth this kind of money” It will take many painful stories and mainly interest rate increases to right this ship. As soon as you see a power of sale sign on the street that will as what we call the TSN turning point for most. Getting my popcorn and munchies ready for the show.

#47 Dobermanduke on 03.28.18 at 9:10 pm

#29 Sam the Sham on 03.28.18 at 7:18 pm
#12 Whatcha Minnie

The one positive thing I can say about your posts is that you don’t describe your bowel movements to us. Thank God!
—————————————————
Hey Sam,
Just another one of the regular posters your best to just scroll on past. Just looking for attention.

#48 Cory in Shangalila on 03.28.18 at 9:16 pm

This is indeed an awesome blog. The short posts by author stimulate parts of my brain I think may have been hitherto dormant.

Some thoughts…

1. The number of people here who could be bothered to learn a little html code and jazz up their comments with bold or italics or link to websites is cool.

2. Inflation is just a fact of life isn’t it? For example, the house my father bought in Edmonton in 1992 when I was still in high school was $100,000. According to inflation calculator it should now be $177,000 and change. So why is a similar home just a few blocks away now $399,000? Supply and demand right? Demographics, economic conditions and a few (or many) other factors have boosted the price of a nice little home in Edmonton to where it is today.

Edmonton house for sale

Has anyone bothered to research (or did I miss that post/comments from Gartho) what has happened to wages in Canada since the early 90’s? My guess would be that house price appreciation can be explained by normal inflation, wage growth (a byproduct of economic conditions) and supply/demand factors.

Here is a link to an excellent publication on wages from our friendly neighborhood Federal Govt:

Statscan wages

A few gems from this fascinating read are:

On the eve of the Great Depression (1920-1930)

Wages recover slowly (1930-1940)

Wages begin to grow with war and post-war economy (1940-1950)

The decade of largest gains (1950-1960)

Over a million women join the workforce (1960-1970)

Inflation keeps real wage gains low (1970-1980)

Wages stagnate (1980-1990)

#49 ImGonnaBeSick on 03.28.18 at 9:19 pm

#12 – Deep Thoughts by Wacha Minnie.

#50 dave in kincardine on 03.28.18 at 9:19 pm

Case #2 Borrowing to invest. The stock market has gone up for 9 years. Average is 5-6 so we are way over extended. Debt is everywhere and is huge. I think batten down the hatches is a good expression. There will always be opportunities. Why can’t people just pay off their debts in good times. In bad times it is almost murder to try and pay off debt. Sleep easy I say.

#51 ImGonnaBeSick on 03.28.18 at 9:21 pm

… and Peter should really watch all of the Wingfield Follies. A little bit of Canadiana for you millennials. Nothing funnier than you townies trying to play farmer.

#52 Keith on 03.28.18 at 9:34 pm

Take care of your parents, and grandparents. Parasites abound.

http://www.cbc.ca/news/canada/new-brunswick/moncton-real-estate-agents-lose-licenses-1.4596839

#53 Wrk.dover on 03.28.18 at 9:37 pm

This house is $340,000. – Garth

——————–

Hitch on front, tail lights on back and pad rental $492/month

#54 For those about to flop... on 03.28.18 at 9:42 pm

Gonna try and keep an eye on half decent houses like these two to see if they go closer to 1 million or 1.4.

This one is priced to sell.

https://www.zolo.ca/vancouver-real-estate/2942-e-georgia-street

This one was built in 1990,so it is not and old heap of crap.
Get rid of the Surrey Salmon on the outside and you have a respectable looking house.

https://www.zolo.ca/vancouver-real-estate/3185-e-29th-street

Also just remembered that I never found out how much this similar type house recently went for on 33rd.

It wasn’t on the market for long and they made an effort even putting down fresh turf.

Probably got ask ,but maybe they just jumped on the first decent offer

Sold for ??? on 13th March.

https://www.zolo.ca/vancouver-real-estate/1596-e-33-avenue

I thought another cheap one nearby sold as well ,but it came back on the market.
https://www.zolo.ca/vancouver-real-estate/5294-st-catherines-street

I think this one will get bulldozed ,as it is on a nice tree lined street with some bigger builds already done.They can’t give it away as they have a certain number that they have to cover unlike some of the other guys…

M43BC

#55 Niagara Region on 03.28.18 at 10:08 pm

Peter, be careful about trying to start an agricultural business, unless you have extensive knowledge of farming (acquired, for example, from a father who was a farmer or through an agricultural program like that offered at the University of Guelph). You could lose your shirt. Small family farms in southern Ontario have been collapsing like slow dominoes since the 1970s. Although some small-time farmers still exist in the region, most have been replaced by large agribusinesses or, less commonly, by large families containing a network of farmers who collectively hold over a thousand acres in a familial conglomeration. It’s extremely easy for the small-time farmer to get crushed. Instead of running the agricultural operations yourself, it would be much less risky financially to buy the land and then rent it out to a sharecropper who knows how to farm well. (The going rate in southern Ontario is typically 50/50 for the owner vs. the sharecropper.)

#56 Jeff on 03.28.18 at 10:17 pm

Hey Garth, I love how you call JT Mr. Dress-up….better than the dead-fish eye, funeral parlour director?

#57 crdt on 03.28.18 at 10:29 pm

Talking about stuff, here is one. The Roseanne Revival with its pro-Trump slant was an astounding success. Seems as if she is really speaking for the plebs like us. While the US media trying to live up to some high moral standard, desperately virtue signalling like a broken traffic grid.

Endlessly, mindlessly, robotically they trot out the same sh*t, month after month, now may be going on for years. It may be true that anything repeated over and over will become truth, but it certainly makes a short stop at f*ing annoying for at least a while. Hence, I believe the reason people like the show is that they can chat with their friends and bring up topics that might be un politically correct but they can identify strongly with, without the moral pee pee spanking by the MSM.

Anyhow, those emails in the post above seem like a target market focus group scenario to laser precision target the ideal prospect. People on the cusp of major financial transactions, with well above average means. Anyone average, or less is an unwelcome loser, used as an example of what could go wrong, so very wrong.

#58 Doghouse Dweller on 03.28.18 at 10:37 pm

#35 Stone
You should have seen the guy at the gas pump today . The surveillance state computer turned of his plastic card. No cash, no gas.
Think you have money , Ya ,only if they let you have it. Careful what you wish for.

#59 Ace Goodheart on 03.28.18 at 10:41 pm

One of my favourite pass times is purchasing shares in little Canadian tech start ups and waiting for them to get bought out.

It’s a tricky business picking the right ones.

Just got lucky again: https://www.reuters.com/article/brief-neulion-inc-to-be-bought-by-endeav/brief-neulion-inc-to-be-bought-by-endeavor-for-about-250-mln-idUSFWN1R80J0

Shares are up by about 44% since the announcement. Cashing out tomorrow (I never actually wait for the buyout to happen, I just sell into the “pop”).

I have another ten of these things sitting in the pipe waiting for the snatch. If maybe two more pan out, then it will be a very good year for me.

#60 Capt. Serious on 03.28.18 at 10:42 pm

I’m expecting the Ontario Liberals to promise to pay for:
– haircuts
– massages
– dog walkers
– house cleaners
– fruits and vegetables
– the kitchen sink

#61 dosouth on 03.28.18 at 10:42 pm

“#11 FOUR FINGERS WATSON on 03.28.18 at 6:28 pm
Some Kelowna homeowners have seen the value of their homes shoot up by nearly 50 per cent in just one year..’s….”

Yeah right?!? I have sold 6 properties in the Okanagan since the early 2005 era until 2014. Not even one has increased by over 50% in that time frame. They have ebbed and risen but one I looked at tonight on the BC EValue site has risen a total of $56k since we sold it in 2009 to travel, just before the fall of properties. View of the lake looking north in the Mission neighbourhood.

Amazing how stories and musings turn into massive profits and success. Not so much in the real world.

#62 akashic record on 03.28.18 at 11:06 pm

Ah, just one question. Is this a weed ranch?

—-

Bitcoin miner heated weed farm.

#63 akashic record on 03.28.18 at 11:07 pm

#59 Ace Goodheart
Good for you.

#64 Disgruntled on 03.28.18 at 11:12 pm

#28 Fake news
“Alcohol is a poison…..weed is not.”

You got that backwards. But mr. Dressup agrees with you so I guess you win.

#65 Disgruntled on 03.28.18 at 11:18 pm

#46 Life in the burbs
“It will take many painful stories and mainly interest rate increases to right this ship.”

Well we’re not going to get many interest rate increases in Canada maybe one for every two we see in the US so I wouldn’t hold your breath.

#66 Fake News Again on 03.28.18 at 11:20 pm

MF on 03.28.18 at 8:30 pm
#28 Fake News Again on 03.28.18 at 7:13 pm

Buddy your name should be “Fake Science Again”

MF

/—-

1. I’m not your buddy.

2. 10 Reasons Why Alcohol is Actually Poison:

https://addictionunscripted.com/10-reasons-alcohol-is-actually-poison/

#67 TnT on 03.28.18 at 11:32 pm

Mind Blowing

First 10 minutes tells you all you need to know about Canada.
http://parlvu.parl.gc.ca/XRender/en/PowerBrowser/PowerBrowserV2/20180327/-1/29018?useragent=Mozilla/5.0%20(Macintosh;%20Intel%20Mac%20OS%20X%2010.12;%20rv:59.0)%20Gecko/20100101%20Firefox/59.0‬

#68 Smoking Man on 03.28.18 at 11:49 pm

Hollywood just wants to keep putting out a product that the market does not want. I have a product that everyone on both sides of the divide will fall in love with the characters I invented.

Congrats to rosey and her new show. A ratings kill. Who would have known.

Bring back last man standing.

#69 Humdinger on 03.29.18 at 12:09 am

Re: #35 Stone on 03.28.18 at 8:05 pm

Street level drug dealers literally use Email money transfers as it is.

Insane “paper” trail. Could be slam dunk convictions if charges were ever sworn. Not enough police resources to enforce this as it stands now, pile on a few thousand extra money laundering transactions because of a cash transaction ban and any hopes of enforcement go poof!

#70 Nonplused on 03.29.18 at 12:21 am

I was having more fun with yesterday’s lefty tax bashing.

Anyway, paraphrasing Jordan Peterson: “Most people cannot improve a complex system, they can only make it worse.”

I decided upon a new proverb: “There are those that can fix a car, but there are also those who have put the windshield wiper fluid in the engine at least once.”

Unfortunately they all get to vote and the best of the best do not run for office they are off doing more interesting things. Turdeau for example can run for office because he couldn’t even get a full time gig as a drama teacher. Make no mistake everything Turdeau and his clown friend Moronreau touch they will break. They don’t understand complex systems and what happens when you just decide to unplug stuff at random. This goes for Nutley, Whiney, and all the others too.

#71 Lorne on 03.29.18 at 12:39 am

“It’s not coming back until the Dippers are tossed in the next election, along with their insane ‘speculation’ tax. ”
……
You might be surprised, Garth….John Horgan has the highest approval rating of all Provincial Premiers at 52%
…and it is increasing!
http://vancouversun.com/news/local-news/b-c-ndp-premier-john-horgan-shares-highest-approval-rating-in-canada-with-sask-premier-scott-moe

#72 SoggyShorts on 03.29.18 at 12:40 am

#41 I’m stupid on 03.28.18 at 8:44 pm
#31 Soggyshorts

I respect your point of view, I’m not asking for the world. I wouldn’t expect a 12oz steak, but I do expect real cheese. At the very least I would want to be reassured that it’s perfectly fine if I don’t like the food. I sat there trying to finish this disgusting meal because I didn’t want to be rude.

******************
That’s fair then. Although as a grown man I would never feel bad or be embarrassed telling someone I don’t like something.
I’m still surprised that the food was nasty. Maybe it was hard to be a vegan 10-15 years ago, but it’s become a big enough market that there’s a lot of really good stuff out there. Your friends sound like they just don’t know what they are doing. When entertaining us meat eaters(especially for the first time), my vegan friends don’t put out any food that is supposed to emulate non-vegan stuff. Everyone eats a lot of food that is vegan already, so they should focus on that. Serving someone tofurkey isn’t too bright, but on the other hand I’ve had “fish” that even as a fisherman’s son I would swear was the real thing.

#73 Dolce Vita on 03.29.18 at 12:41 am

#33 SoggyShorts

Come to Italia to learn how to cook and eat.

2 N. American’s debating cuisine is hilarious to say the least.

And the food SJW text, save that virtue signaling for a CBC Twitter post.

#74 JPN on 03.29.18 at 12:56 am

That house on Raymer for $ 340,000 is in Sunshine Village and it’s strata, you don’t own the land and there is a monthly charge. There are no SFD with owned land in Kelowna for this price. I’ve heard Kelowna was crashing for over 12 years now. Bought and sold 4 homes (built 2) in this period. Did very, very well. Great city, love the life style, people are moving here.

#75 NVLandlord NO MORE on 03.29.18 at 1:05 am

American gas 91 cents a liter ! What excuses can they possibly dream up for a 44% price gouge ?

Well in North Vancouver today gas is $152.9

Why?????: CARBON TAX GRAB GOUGE

#76 Leo Trollstoy on 03.29.18 at 1:52 am

This house was bought in 2013 and now worth 1M.

sweet! you really took advantage of skyrocketing real estate prices from 2013 to its peak in 2017

congrats!

#77 AACI Home-Dog on 03.29.18 at 2:43 am

“some soulless street in the burbs”
haha… I am unsure how some of them folks in the big burbs find their house on a rough night out when they all look the same along any given street.
thanks Garth…rt

#78 AACI Home-Dog on 03.29.18 at 3:04 am

Awesome post tonight Garth.
love the following paragraph..a lot of info in there…

The big question: should you borrow to invest? The answer: if you understand borrowing increases risk. If you intend on staying invested for a long period and can ignore volatility. If you put the money into the correct assets in the right weightings. If you have some professional advice in structuring the portfolio. And, especially, if she agrees.

#79 Widening Gyre on 03.29.18 at 4:20 am

A little birdie told me that one of the big banks is pushing people who are renewing their mortgages into taking an extra $100,000 for investing. TNLATB has a quota to hit, and this month HELOCs for investing is on the list.

I guess the bank needs to make up lost business, from those who can’t pass the stress tests, somehow.

Tom should be aware that the interest on the HELOC will only be deductible if he invests in a non-registered portfolio. It sounds like he wants to top up the RRSP and TFSA’s – in which case the deduction won’t apply.

#80 Cheekmonster on 03.29.18 at 5:39 am

#7 I’m stupid

I’m not a fan of Indian food. If a traditional Indian family invited me for dinner I would have to make some choices. If I choose to go and give it a try then I would not blame the Indian family for serving me the food that they normally eat.

Maybe you should relook at your approach instead of putting yourself in bad situations and then blaming everyone else.

#81 Gravy Train on 03.29.18 at 6:03 am

#68 Smoking Man on 03.28.18 at 11:49 pm
“Hollywood just wants to keep putting out a product that the market does not want. I have a product that everyone on both sides of the divide will fall in love with the characters I invented.”

Do you mean movie products like Fear and Loathing in Las Vegas starring Johnny Depp and Benicio del Toro? (Smokey, you do recall that the movie was about Gonzo journalism and the misadventures of Hunter S. Thompson.)

You’re right! The movie was a bomb! The box office was $10.6 million, well below its budget of $18.5 million.
http://www.boxofficemojo.com/movies/?id=fearandloathinginlasvegas.htm

Johnny Depp did win the best foreign actor award from the Russian Guild of Film Critics in 1998. However, Depp and del Toro were nominated by the Stinkers Bad Movie Awards for worst on-screen couple, and del Toro was nominated for worst supporting actor.
http://www.imdb.com/title/tt0120669/awards

Poor Smokey! Life must be awfully rough on you! As the Scarecrow often said from MGM’s classic The Wizard of Oz, “… If [you] only had a brain!”

#82 Dan on 03.29.18 at 6:31 am

#52 Keith on 03.28.18 at 9:34 pm
Take care of your parents, and grandparents. Parasites abound.

http://www.cbc.ca/news/canada/new-brunswick/moncton-real-estate-agents-lose-licenses-1.4596839

———————-

WOW! man that is harsh. A one year suspension! What will they do? Wait, actually sounds ok to me if you are a scam artist and have no morals. Try to rip off the vulnerable and cash in hundreds of thousands if you don’t get caught- the risk- oh, boo hoo, I can’t do it again for 1 year.

Seriously. This is Canadian Real Estate. Anything goes.

It’s like in YVR and GTA, and i guess new brunswick too, scam owners out of hundreds of thousands, assignment flipping, and a ton of other shady deals and opps, I got caught…ok, Ill pay the $5000 dollar fine. Real harsh. Self regulation is awesome.

#83 Victor V on 03.29.18 at 7:32 am

Toronto morphs into new ‘monster’ as houses slump, condos soar

https://www.bnn.ca/toronto-morphs-into-new-monster-as-houses-slump-condos-soar-1.1041460

It’s a tale of two housing markets in the Toronto area as Canada’s biggest city gears up for the crucial spring selling season: sales of big detached homes are slow, while condo deals are booming.

On one side are people like Karen Berends, who put her $1,498,888 house back on the market in nearby Oakville this month after two failed attempts to sell in the past year. She reduced her asking price by about $51,000, but still there are no takers, and she’s kicking herself for not cashing out last spring when the market was in a frenzy.

“We could’ve walked away with a really good amount of money in our bank account if we had taken the money last year, but our head wasn’t in it at that point,” Berends said in a phone interview. “It’s been a complete 360 this time around — it’s absolutely dead.”

#84 Gravy Train on 03.29.18 at 7:42 am

#73 Dolce Vita on 03.29.18 at 12:41 am
“Come to Italia to learn how to cook and eat.”

How would you compare Tuscany with Provence? (I’m planning a European vacation for next year.)

#85 dharma bum on 03.29.18 at 8:23 am

#29 Sam the Sham

#12 Whatcha Minnie

The one positive thing I can say about your posts is that you don’t describe your bowel movements to us. Thank God!
——————————————————————–

Now that you mention it, I would actually be kind of interested in hearing about them. Hmmmmmmm………

#86 Hi, Ace Goodheart on 03.29.18 at 8:24 am

Hi Ace.
I’m very interested in the startup trading you mentioned.
Is there any tips you could offer,or some kind of reading you could recommend.
Thanks in advance.
(Hoping host doesn’t mind)

#87 IHCTD9 on 03.29.18 at 9:03 am

#75 NVLandlord NO MORE on 03.29.18 at 1:05 am

Well in North Vancouver today gas is $152.9
___________________________

GoodFG – that is absolutely stark raving insane stupid.

WTI is like 64.00 right now.

The reasons to just get the hell out of Vancouver are piling up a mile high.

Gasoline has turned into a transportation tax in liquid form. That price has to be more than half taxes.

#88 Pulp Faction on 03.29.18 at 9:08 am

Garth, is it too early to speculate on R/E on the moon ?

Is this a good time to buy ?

#89 IHCTD9 on 03.29.18 at 9:15 am

#55 Niagara Region on 03.28.18 at 10:08 pm

Instead of running the agricultural operations yourself, it would be much less risky financially to buy the land and then rent it out to a sharecropper who knows how to farm well. (The going rate in southern Ontario is typically 50/50 for the owner vs. the sharecropper.)
______

Depends what the farming conditions are out his way. North of Port Hope is not too far from me, and out my way there is a lot of land farmed by farmers who don’t own it just so the actual owners don’t have to pay the taxes.

There are many farms that have had the land severed from the home by folks who don’t farm, most are hoping to someday take a few lots off the ex-farmland. In the meantime they rent out the land (if lucky) or just let some farmer use it so they don’t have to pay the taxes.

#90 Howard on 03.29.18 at 9:26 am

#41 I’m stupid on 03.28.18 at 8:44 pm

#31 Soggyshorts

I respect your point of view, I’m not asking for the world. I wouldn’t expect a 12oz steak, but I do expect real cheese. At the very least I would want to be reassured that it’s perfectly fine if I don’t like the food. I sat there trying to finish this disgusting meal because I didn’t want to be rude.

————————————-

What’s so disgusting about salad?

Do you NEVER eat vegetables?

#91 Howard on 03.29.18 at 9:30 am

#84 Gravy Train on 03.29.18 at 7:42 am

#73 Dolce Vita on 03.29.18 at 12:41 am
“Come to Italia to learn how to cook and eat.”

How would you compare Tuscany with Provence? (I’m planning a European vacation for next year.)

—————————————

French food is VERY meat-based whereas Italian food is more varied and has a lot more flavour. For cuisine alone I would choose Tuscany.

I live in France but I don’t much care for French food. It’s bland, veggies are always overcooked. Love the cheese and bread though.

#92 Howard on 03.29.18 at 9:46 am

#80 Cheekmonster on 03.29.18 at 5:39 am

#7 I’m stupid

I’m not a fan of Indian food.

————————————

Really? You need new taste buds.

#93 Howard on 03.29.18 at 9:52 am

#56 Jeff on 03.28.18 at 10:17 pm

Hey Garth, I love how you call JT Mr. Dress-up….better than the dead-fish eye, funeral parlour director?

————————————-

The former relates to one’s behaviour. The latter relates to physical characteristics. Why are leftists so shallow?

#94 TurnerNation on 03.29.18 at 10:50 am

Can we get to 100th?

Widows and orphans rejoice. Enbridge stock has come alive.

Now, off to enjoy my “privilege” lol

M42ON

#95 45north on 03.29.18 at 11:02 am

It’s not coming back until the Dippers are tossed in the next election, along with their insane ‘speculation’ tax.

Peter Munk just died. He owned three homes in Ontario. Good thing he didn’t own three homes in BC because the Dippers would drive him out.

He maintained homes in Paris and Switzerland, as well as three homes in Ontario and a 40-metre yacht.

http://nationalpost.com/commodities/mining/barrick-gold-founder-peter-munk-entrepreneur-with-a-midas-touch-dies-at-the-age-of-90/wcm/789e66a3-2e41-46a0-bece-b887492cf195

#96 Damifino on 03.29.18 at 11:14 am

#35 Stone on

Ban cash transactions entirely across the country. Goodbye money laundering. Goodbye black market under the table. Goodbye bullshit.
————————————-

Hello digital snoop trail on every dime you ever spend from that point on. If you think too much is known about individual habits now, you haven’t seen anything.

#97 Zapstrap on 03.29.18 at 11:18 am

#90 Howard on 03.29.18 at 9:26 am

What’s so disgusting about salad?

This:
https://www.youtube.com/watch?v=-zfzT7QfLZc

#98 For those about to flop... on 03.29.18 at 11:26 am

Gyptocurrency update…

M43BC

“How Profitable Are the World’s Top Crypto Exchanges?

According to estimates, calculated by Bloomberg, the top ten cryptocurrency exchanges are bringing in as much as $3 million per day in profit. Considering that cryptocurrency did not even exist until 2009, profit at that level is absolutely astonishing compared to the historical development of other industries. It is easy enough to understand how cryptocurrency exchanges make their money–by charging fees for users who sell, buy, and withdraw cryptocurrencies. However, there are a few different important stats and trends that can help us to understand why certain exchanges are currently more profitable than others.

Where are the world’s top exchanges located?
Asian-based cryptocurrency exchange platforms are dominating the global crypto trading industry. Estimates put both Tokyo-based Binance and Hong Kong-based OKEx at over $1.7 billion traded daily. In terms of volume, these are followed by Huobi (Singapore), Bitfinex (Hong Kong), Upbit (South Korea), and Bithumb (South Korea). It is estimated that over 50% of the world’s daily crypto trading is done on Asia-based exchanges. However, a recently announced crackdown by the Securities and Futures Commission in Hong Kong could signal the beginning of a shift away from Asia if investors and exchange founders become more wary of the viability of exchanges headquartered there. Hong Kong isn’t the only place becoming less hospitable to crypto exchanges. Increased scrutiny in Japan, China, and elsewhere led Binance to recently announce that it will expand its operations to Malta, where the company will offer a fiat exchange option. This is a strategy which will not only help Binance comply with regulations, but could also increase the geographic scope of Binance’s user base.

Why are Asian exchanges so popular?
When most people around the world think of the biggest tech giants, a handful of names come to mind–Facebook, Google, and Amazon, for example. These are all all US-based companies. With the top cryptocurrency exchange platforms (by trading revenue per day), however, there is an obvious trend towards Asia as the dominant continent for exchange headquarters. Aelf co-founder Zhuling Chen cites several factors for the popularity of Asian-based exchanges. A few of the most significant include:

Low costs of cryptocurrency mining: energy costs have made many nations in Asia hubs for miners, fueling growth since the early days of crypto.

A well-established economy based on mobile payments: WeChat, AliPay, and other mobile apps are used for both P2P (peer-to-peer) and C2B (consumer-to-business) payments on a daily basis.

Gaming Culture: young people are familiar with using tokens in video games as rewards which hold value. Gaming has helped to instill the concept of tokenization and trading of tokens from an early age. For many, cryptocurrency can be seen as the next step in the evolution of tokens.

Will the current top ten exchanges remain profitable in the future?
While this answer has yet to be determined, there is undeniably more competition entering the crypto exchange platform market. For instance, Robinhood (US) hopes to become the top exchange platform by offering zero fees on crypto-to-crypto trading. Binance and the other top platforms have yet to lower fees to compete. Nonetheless, many exchanges are finding innovative ways to quickly adapt to the market’s changing landscape. Here are a few examples of what Binance and some other popular exchanges are doing to stay relevant.

Decentralization: It is expected that most (if not all) cryptocurrency exchanges will soon become 100% decentralized. This is seen as a way to transfer monetary authority from exchanges to their users. It is also seen as a more secure option.

Fiat-to-crypto: Binance, KuCoin, and many other exchanges do not currently offer fiat-to-crypto exchanges due to the time it takes to establish relationships with traditional banks. Now, however, many crypto-only exchanges are looking to spend the time required to build these relationships and overcome regulatory hurdles.

Incentivising investments: On many exchange platforms, there are prize drawings for participants buying newly launched tokens. It’s very common for Binance to give away luxury cars, like it did during this Maserati + Mercedes-Benz Giveaway, or to award large sums of bonus tokens.

Will high volume trading continue?
While it’s certainly far too early to tell how much price volatility will affect crypto trading volumes and revenues for the top exchanges in 2018, the fundraising success of ICOs so far this year could serve as a positive indicator of the continued profitability. The combination of innovative user acquisition strategies and overall increases in the number of listed cryptos will likely help many of the top exchanges remain competitive and profitable.”

https://howmuch.net/articles/crypto-exchanges-revenue

#99 Reddy on 03.29.18 at 11:33 am

G and m got it wrong.. It was not unexpected…

https://www.theglobeandmail.com/business/article-canadian-economy-unexpectedly-shrinks-by-01-per-cent-in-january/

#100 Stone on 03.29.18 at 12:01 pm

#58 Doghouse Dweller on 03.28.18 at 10:37 pm
#35 Stone
You should have seen the guy at the gas pump today . The surveillance state computer turned of his plastic card. No cash, no gas.
Think you have money , Ya ,only if they let you have it. Careful what you wish for.

——-

Uhmmm…where do you keep your money? In a bank account at the bank or under your mattress? If it’s at the bank, it makes no difference. It’s all electronic already. We have already been subsumed. Just accept it.

I carry $20 in my wallet for emergencies which has been sitting there for the last couple of years untouched. Never a problem using a credit or debit card. Then again, I’m not much into tin foil either.

Think the PTB can’t track your every move? Think again. If you have smartphone, they’re tracking you. Every step of the way. No amount of tin foil can save you.

#101 aa5 on 03.29.18 at 12:02 pm

In BC the angry masses demanded steep new carbon taxes on the oil companies. And then to use all that new tax money to fund socialist programs.

So the first of several steep new carbon taxes came into effect with the NDP budget. Then the oil companies passed the increased costs on to the price of gasoline.

Now the angry masses are furious at the oil companies for price gouging. Stupid thing is the people haven’t put two and two together, that the rising oil price is linked to the increased carbon tax.

People think ‘corporations’ pay the carbon taxes.

#102 jess on 03.29.18 at 12:15 pm

Barclays agreed Thursday to pay the United States $2 billion for allegedly deceiving investors about the quality of mortgage deals that fueled the 2008 financial crisis.

The Justice Department said the British bank “caused billions in losses” to investors by engaging in a “fraudulent scheme” involving three dozen mortgage-backed securities deals sold between 2005 and 2007.

The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted.

https://www.justice.gov/opa/pr/barclays-agrees-pay-2-billion-civil-penalties-resolve-claims-fraud-sale-residential-mortgage

Of the $31 billion of mortgages packaged together in these investments, more than half eventually defaulted. Prosecutors said Barclays “systematically and intentionally misrepresented” the quality of these loans to investors.

#103 Ogopogo on 03.29.18 at 12:32 pm

#199 Mattl on 03.28.18 at 12:36 pm
Ogopogo – stop embarrassing yourself. You’ve been waiting 7 years in Kelowna? This market, save the last 18 months has been mostly flat, single digit yoy. You could have bought SFH for under 300 in 2011, for free money lol. Or acreage lakeview under 600. Even now homes stay up for 70 plus days.

You vulchers kill me. You missed the previous buying opp and expect us to believe you are going to find the next one. By the time you buy in you would be halfway to paying off the 2011 house , payments less then todays sfh rental cost.

Not suggesting now is a good time to buy but 2011-2016 were great times to get in and if you didn’t like those prices expect to be waiting forever.

This clown things he “got” me. LOL. Completely ignores that I mentioned how my financial portfolio has outpaced Kelowna real estate *every* year on average for the last 7 years I’ve lived in this delusional joke of a town.

Also, here’s the kicker that shows his ignorance: “This market, save the last 18 months has been mostly flat, single digit yoy.” Obviously, our low-IQ Neanderthal here understands nothing of a globally diversified portfolio, and thinks I have everything invested in Canadian stock. This is why it’s virtually impossible to convince the average blockhead to invest in a balanced and diversified portfolio.

Financial illiteracy coupled with arrogance is a toxic (but comical) combination.

#104 Doghouse Dweller on 03.29.18 at 12:43 pm

#100 Stone
The point was the guy didn`t have 2 cents in his wallet. Card didn`t work and he was screwed, dazed and confused.
You don`t have to be long Alcan to understand that Cash works even when the lights go out.

#105 PastThePeak on 03.29.18 at 12:59 pm

#83 Victor V on 03.29.18 at 7:32 am
Toronto morphs into new ‘monster’ as houses slump, condos soar

https://www.bnn.ca/toronto-morphs-into-new-monster-as-houses-slump-condos-soar-1.1041460

It’s a tale of two housing markets in the Toronto area as Canada’s biggest city gears up for the crucial spring selling season: sales of big detached homes are slow, while condo deals are booming.
+++++++++++++++++++++++++++++++++++

Sounds like people are bidding up condos “just because they can” – meaning it is all they can afford given what is for sale. So housing (apartment) lust is as strong as ever – the only place to put ones money.

I am sure many on here would say – of course, as long as the market is going up, why not – which is why the blog here is called the greater fool.

$1000-$1200 per sqft is mentioned in the article – so a one bedroom condo with just a bit of space is hitting $750K. A unit which is a studio at 500 soft is more likely what is selling. $500K for a space you could barely swing a cat in (threw that it in for you Garth…:)

Condo (apartments) are the worst RE from an investment perspective in general. The building starts to depreciate as soon as it is built. The monthly condo fees are lowest right at closing, and only grow over time, with special assessments for common repairs intermittently. Limited ability to put in sweat equity to improve its value.

#106 jess on 03.29.18 at 1:00 pm

e.g. How vulture capitalists ate Toys ‘R’ Us
Jeff Spross
http://theweek.com/articles/761124/how-vulture-capitalists-ate-toys-r
private equity’s role in the retail apocalypse
turning retailers into debt vehicles, all the while maximizing dividend payments.

#107 Marc the Litigator on 03.29.18 at 1:04 pm

Is it just me or does this seem a little bit excessive… I guess this is another symptom of being a “World class” city… in the way the Gaza Strip is…

http://www.cbc.ca/news/canada/toronto/security-plan-parking-pass-toronto-police-rogers-centre-acc-driving-1.4597591

I wonder if these restrictions will apply to the Real Estate, Bitcoin and Wealth Expo TM…

#108 Damifino on 03.29.18 at 1:09 pm

#100 Stone

I carry $20 in my wallet for emergencies which has been sitting there for the last couple of years untouched. Never a problem using a credit or debit card.
——————————–

I carry cash and buy most smaller items with it like restaurant meals, groceries and drug store items. Thankfully, it’s still accepted almost everywhere.

I go nuts waiting in line behind people fumbling with credit cards, debit cards (and ‘loyalty cards’ too, what a scam) to buy a package of gum.

Of course, I have a credit card too. It’s for bigger items, say more than $60. I use it at my discretion, which is fortunately, still up to me.

BTW, plenty of times I’ve come to a checkout where the connection to the internet is ‘down’ and someone has hastily scribbled a “cash only” sign. I walk past a line of bewildered, ticked off people, purchase my stuff and carry on.

I find cash to be extremely convenient. The reason cash might go away is because vendors find it more of a hassle. I don’t worry about them so much.

It will be a sad day if we lose cash. It’s got nothing to do with tin foil though. It’s just a loss of independence. It’s something like ‘e-books’. If I have a paperback and sell it to you for cash, it’s just between you and me. No third party is in on the transaction and nobody is waiting the wings to assert their digital property rights.

It was my book. I bought it legally along with the right to do with it what I pleased (except copy it). Then it became your book and that right became yours. Simple.

#109 SimplyPut7 on 03.29.18 at 1:17 pm

#83 Victor V on 03.29.18 at 7:32 am

I guess the person who wrote the article failed to mention condo sales fell by 30% and inventory is rising. Just like the detached houses and townhouses, the condos are mostly flippers and speculators too.

The amount of people I have met who know they bought crappy concrete shoe boxes, but hope the prices will keep going up so they can make quick easy money is scary.

This article is full of stereotypes too, there are not many foreigners looking to buy property in Canada if prices are not going up over 10% a year, and as soon as the condo speculators in Toronto realize how many units were bought by other speculators hoping to sell for a quick buck (before they have to make mortgage payments on places they can’t afford to keep long-term), sales will stall like the detached homes and townhouses in the GTA.

With rising interest rates and condo maintenance fees that seem to always go north of $500 a month, the Toronto condo market will be interesting to watch over the next 5 years.

I’m surprised lenders haven’t asked for their money back on all the vacant flipped homes and condos.

#110 Raver on 03.29.18 at 1:23 pm

DELETED

#111 Entrepreneur on 03.29.18 at 1:28 pm

BC has being paying the carbon tax at the gas pump for at least 10 years now (Liberals). Consumers always knew #101 aa5 that the consumers always get stuck with the extra cost put on big corporations.

And whatever happened to the money collected from the carbon tax? Did any of it go into green energy? It would of being a nice incentive for us consumers.

#112 James on 03.29.18 at 2:03 pm

#16 Smoking Man on 03.28.18 at 6:41 pm

Ouch!

https://betterdwelling.com/greater-toronto-real-estate-sees-largest-drop-in-demand-across-canada/?utm_medium=pushnotification&utm_source=browser&utm_campaign=BD_Push
___________________________________________
Oh do you own property in the GTA?

Oh I forgot you live in a van under the bridge in LA.

Hurry up I hear the methadone clinic is giving away free HoHo’s and Ding Dongs if you turn in your old needles.

#113 Smoking Man on 03.29.18 at 2:07 pm

Poor Smokey! Life must be awfully rough on you! As the Scarecrow often said from MGM’s classic The Wizard of Oz, “… If [you] only had a brain!”.

Yeah really rough. I’ll post some pics on my Twitter from my corner suite at the Wynne. After I check in Later.

WooHoooo

@smokingman

#114 Johnnyboy on 03.29.18 at 2:14 pm

#105 PastThePeak on 03.29.18 at 12:59 pm

#83 Victor V on 03.29.18 at 7:32 am
Toronto morphs into new ‘monster’ as houses slump, condos soar

https://www.bnn.ca/toronto-morphs-into-new-monster-as-houses-slump-condos-soar-1.1041460

It’s a tale of two housing markets in the Toronto area as Canada’s biggest city gears up for the crucial spring selling season: sales of big detached homes are slow, while condo deals are booming.
+++++++++++++++++++++++++++++++++++

Sounds like people are bidding up condos “just because they can” – meaning it is all they can afford given what is for sale. So housing (apartment) lust is as strong as ever – the only place to put ones money.
I am sure many on here would say – of course, as long as the market is going up, why not – which is why the blog here is called the greater fool.
$1000-$1200 per sqft is mentioned in the article – so a one bedroom condo with just a bit of space is hitting $750K. A unit which is a studio at 500 soft is more likely what is selling. $500K for a space you could barely swing a cat in (threw that it in for you Garth…:)
Condo (apartments) are the worst RE from an investment perspective in general. The building starts to depreciate as soon as it is built. The monthly condo fees are lowest right at closing, and only grow over time, with special assessments for common repairs intermittently. Limited ability to put in sweat equity to improve its value.
…………………………………………………………………..
I have had so many friends that purchased condos only to sell them at a minimal increase after a few years of condo hell. They felt that this was the only way to afford a home in the GTA. One friend and his wife thought the lovely condo was clean and neat until they started getting condo owners renting them back out. Lets face it if you don’t own it what do you care about keeping it up. The others had been in an established building that decided to upgrade everything in two years. Condo fees went over 1300 per month and there wasn’t a dam thing you could do about it. They bailed at even money due to the ransom condo fees nobody wanted. The last was a relative that decided to retire and suddenly realized the neighbors were pot heads and the other one liked to cook some heavy curried dishes that stunk up the entire floor. It creeps into every place and the smell never goes away. I love curry but in a restaurant not my home. All of them to this day are in homes and row-houses out of the area and commute.

#115 SoggyShorts on 03.29.18 at 2:20 pm

#73 Dolce Vita on 03.29.18 at 12:41 am
#33 SoggyShorts
Come to Italia to learn how to cook and eat.
2 N. American’s debating cuisine is hilarious to say the least.
And the food SJW text, save that virtue signaling for a CBC Twitter post.

*************************
1. Funny enough, I’ve spent a lot of time in italy..sorry “italia”/eyeroll and I even took a cooking course last time.
2. Where do you think North Americans came from? No one is talking about Native Bannock bread. There are extremely few ingredients or techniques that are only used in a single country.
3. I’m not even Vegan, and pointing out the fact that livestock is bad for the environment is not virtue signaling you tool.

#116 Stone on 03.29.18 at 2:26 pm

#108 Damifino on 03.29.18 at 1:09 pm
#100 Stone

I carry $20 in my wallet for emergencies which has been sitting there for the last couple of years untouched. Never a problem using a credit or debit card.
——————————–

I carry cash and buy most smaller items with it like restaurant meals, groceries and drug store items. Thankfully, it’s still accepted almost everywhere.

I go nuts waiting in line behind people fumbling with credit cards, debit cards (and ‘loyalty cards’ too, what a scam) to buy a package of gum.

Of course, I have a credit card too. It’s for bigger items, say more than $60. I use it at my discretion, which is fortunately, still up to me.

BTW, plenty of times I’ve come to a checkout where the connection to the internet is ‘down’ and someone has hastily scribbled a “cash only” sign. I walk past a line of bewildered, ticked off people, purchase my stuff and carry on.

I find cash to be extremely convenient. The reason cash might go away is because vendors find it more of a hassle. I don’t worry about them so much.

It will be a sad day if we lose cash. It’s got nothing to do with tin foil though. It’s just a loss of independence. It’s something like ‘e-books’. If I have a paperback and sell it to you for cash, it’s just between you and me. No third party is in on the transaction and nobody is waiting the wings to assert their digital property rights.

It was my book. I bought it legally along with the right to do with it what I pleased (except copy it). Then it became your book and that right became yours. Simple.

———

And there we go. You make my point. Ultimately, it’s about tax evasion and hiding criminal activity. Your example of selling a book is insignificant but now magnify that throughout the whole economy as a whole. The impact then is not insignificant. It’s enough with that bullshit. I’m so sick of that primitive behaviour. Time for everyone to evolve whether they like it or not.

#117 Stone on 03.29.18 at 2:32 pm

#115 Stone on 03.29.18 at 2:26 pm
#108 Damifino on 03.29.18 at 1:09 pm
#100 Stone

I carry $20 in my wallet for emergencies which has been sitting there for the last couple of years untouched. Never a problem using a credit or debit card.
——————————–

I carry cash and buy most smaller items with it like restaurant meals, groceries and drug store items. Thankfully, it’s still accepted almost everywhere.

I go nuts waiting in line behind people fumbling with credit cards, debit cards (and ‘loyalty cards’ too, what a scam) to buy a package of gum.

Of course, I have a credit card too. It’s for bigger items, say more than $60. I use it at my discretion, which is fortunately, still up to me.

BTW, plenty of times I’ve come to a checkout where the connection to the internet is ‘down’ and someone has hastily scribbled a “cash only” sign. I walk past a line of bewildered, ticked off people, purchase my stuff and carry on.

I find cash to be extremely convenient. The reason cash might go away is because vendors find it more of a hassle. I don’t worry about them so much.

It will be a sad day if we lose cash. It’s got nothing to do with tin foil though. It’s just a loss of independence. It’s something like ‘e-books’. If I have a paperback and sell it to you for cash, it’s just between you and me. No third party is in on the transaction and nobody is waiting the wings to assert their digital property rights.

It was my book. I bought it legally along with the right to do with it what I pleased (except copy it). Then it became your book and that right became yours. Simple.

———

And there we go. You make my point. Ultimately, it’s about tax evasion and hiding criminal activity. Your example of selling a book is insignificant but now magnify that throughout the whole economy as a whole. The impact then is not insignificant. It’s enough with that bullshit. I’m so sick of that primitive behaviour. Time for everyone to evolve whether they like it or not.

———

I’ll add: get the book from the library. It’s free. Hard copy or ebook. Do you know what the library is paid by? TAXES! Established for the common good. Take a moment and let that sink in. Actually, take more than a moment. Unbelievable how thick the majority of the population is.

#118 NoName on 03.29.18 at 2:55 pm

interesting read

I live in the San Diego market where the rate for passengers is $1.10 per mile and $.15 per minute. I’ve taken numerous rides between my house and the airport, during which that price never changed. What I would pay for an airport ride tended to be about $55 – $60 for a ride from the airport, the difference being the fee the San Diego airport charges Uber.

A few months ago I started regularly taking a Monday morning trip to the airport, then another ride home from the airport Tuesday evening. Even the dumbest AI program can figure out that I’m a business traveler. The fact I’m using a business profile helps as well. Uber knows where I live, where I fly out of, where I work, and where I tend to stay when I’m in Sunnyvale.

The AI program figured out I’m a business traveler and started jacking up my prices. My upfront price to the airport started showing up around $70, and my ride home was close to $80. No surge. Just a much higher price for the same trip. Uber’s thoughts? Maybe ‘He’s on an expense account! He doesn’t care what he’s paying!’

https://therideshareguy.com/uber-is-ripping-off-frequent-riders-and-heres-how-to-avoid-it/

#119 Joe Bloggs on 03.29.18 at 3:14 pm

#116 Stone
Ultimately, it’s about tax evasion and hiding criminal activity.
——————————————————-
– LOL!!! Congrats! In a police state any activity is criminal until proven otherwise.

#120 Newcomer on 03.29.18 at 3:21 pm

#106 jess on 03.29.18 at 1:00 pm
e.g. How vulture capitalists ate Toys ‘R’ Us
——-

It’s a messed up world where people weep for the loss of Toys R Us. Will be also be saddened by the demise of Walmart?

#121 For those about to flop... on 03.29.18 at 3:34 pm

pm
interesting read

I live in the San Diego market where the rate for passengers is $1.10 per mile and $.15 per minute. I’ve taken numerous rides between my house and the airport, during which that price never changed. What I would pay for an airport ride tended to be about $55 – $60 for a ride from the airport, the difference being the fee the San Diego airport charges Uber.

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

Hey NoName,this person must be coming from a ways out.

Pretty hard to get a cab fare for more than $25 downtown to the airport.

San Diego is so compact it is possible to walk to the airport from downtown.

Just two days ago I walked three blocks from the hotel and paid $2.25usd bus fare to the airport 5.30 in the morning.

We caught taxis the first couple of times we went there but then we realized it wasn’t necessary.

Cheap ,reliable and clean.

That city has a good public transportation system for that size city…

M43BC

#122 Newcomer on 03.29.18 at 3:40 pm

#116 Stone on 03.29.18 at 2:26 pm

It was my book. I bought it legally along with the right to do with it what I pleased (except copy it). Then it became your book and that right became yours. Simple.

And there we go. You make my point. Ultimately, it’s about tax evasion and hiding criminal activity. Your example of selling a book is insignificant …

—-
How is selling a book either criminal or evasive? Buying the paperback gave him the right to sell it and, unless he’s selling it for more than he paid for it, or claiming the cost of buying it as tax deduction, it’s not taxable.

#123 Mattl on 03.29.18 at 3:51 pm

Uh oh, think I triggered Ogopogo!

Congrats on your balanced, mine has also out paced Kelowna real estate. Not hard to do…. because Kelowna real estate has been mostly flat the 7 years you have been planning your vulch. As in, you were waiting for a drop for 5 years that never happened, while money was insanely cheap to borrow. Unfortunately for you, the last 18 months have seen insane growth.

Your vulch strategy was poorly played, you missed great buying opps and will likely miss the next dip. Or, you will buy in at prices that were more then the ones you passed, with money borrowed at twice the rate you had access to in 2012-2016.

Which is fine, but bragging that you are going to knee cap sellers and somehow come out way ahead is pretty funny. Praying for a crash so you can get into a home at prices you passed on – who is the financial genius again?

Bottom line is you could have bought a home at silly cheap prices, using silly cheap money AND – assuming you don’t live at home – fully funded a balanced portfolio. So good luck vulching bud! If the stars align someone will sell you that home you want at the price you passed on.

#124 Steven Rowlandson on 03.29.18 at 4:06 pm

Don’t fall in love with home prices. Thanks to the ice age cycles this country has a shelf life. It is only a place to live.

#125 bill on 03.29.18 at 5:24 pm

”and dogs who hum The Clash.”
had no idea dogs could do this. howl maybe…

#126 AccountingDan on 03.30.18 at 1:27 pm

The internet guy buying the farm should ensure he knows the tax rules about buying a farm. Lots of advantages if deemed to be a real farm such as low property taxes but if farming is not your major source of income, (>than 50%) then your expenses are severely limited. Farm losses are limited to $2,500 and then only 50% of the next $30k. These restrictions apply even if you are full time farming and severely screw people who are successful and commence farming. Even worse, if your deemed a hobby farm, no losses are allowed whatsoever. The good news though is that you can carry your losses forward for 20 years if you become profitable. Oh and on the house and land, only a small portion can be considered Principal Residence (1/2 acre if I remember correctly) and the rest is subject to Capital Gain in the future.
At the very least, he should do some serious research or talk to an accountant before buying to set up the best structure and allocate the cost base accordingly.