Moister Week

It’s Moister Week here at GreaterFool! Astonishingly, these little peckers now constitute the largest cohort in Canada. Born between 1981 and 2000 (more or less), Millennials make up about 28% of the population (Boomers = 26%) and comprise 38% of the workforce.

On average (says Environics) Mills earn a household income of $71,000. They’ve delayed marriage and having kids more than any generation in memory, are more urban and have spent vastly longer living with their parents. Some people say this delayed adulthood has made moisters feel like entitled tattooed snowflakes unable to cope with economic reality, who therefore look to Big Government to solve everything. Others just point to the fact houses cost a million, student debt is extreme and you now need a uni degree to be a barista, so what does society expect? Gratitude?

Anyway, despite serious attempts at irritating and insulting them, many moist ones apparently read this blog. They ask me questions.

Hey Garth: I have been reading your blog for the better part of a year now, learning of you from a friend of mines father while trying to pull investment wisdom from him; his lips are tighter then his wallet.. however he did forward me onto you. I am 33 years old, own a condo partially with the bank owning the majority in Langley BC, I have a mortgage of 160k and the “assessment” being around 370k and rented out at 1200 per month. I also have my TFSA maxed out and 70k in the bank. I am working a job that has no pension and planning on changing careers do you think i should sell the inflated condo and invest? What should I do with my 70? My TFSA is all stocks I picked myself… I want to be on a beach asap. Signed, Another Whiny Millennial.

First, the condo. The mortgage costs $800 a month, so with strata fees and property tax you’re just breaking even on a monthly basis – which means the equity is earning nothing and you’re actually losing money. Besides the rental income is 100% taxable and you’re vulnerable to special assessments, increased monthly charges, unexpected vacancy or tenants whose pet pig knocks over the grow-op lights and incinerates the place.

If you’ve made money, cash in your chips, pay the capital gains tax and invest. The BC condo market has been insane lately, now starting the inevitable retrenchment. Affordable places like yours are still in demand, so bail. In terms of investing, dump your stocks since that’s simply adolescent gambling, and put everything into the Moister Portfolio described on this blog. You should be on the beach by age 55. Suck it up.

Now here comes Aaron. By Mill standards, he’s a 1%er.

Hi Garth, I suppose I’m the usual entitled millennial who is enjoying your blog daily. I’ll start by saying the usual appreciation for your wit and constant blog posts – you are an inspiration of conservatism.

I’m 30, newly married and live in the orange province, in the Queens city. We moved back to Victoria following some years in Vancouver and TO. I lucked out and got to keep my job paying U$D so life is good. Now to the ugly….

My problem is simple. My wife wants a house…… she is sick of our 750 sqft rental and has her eyes on kidlets. I’m begging weekly to rent a house even as high as 3k per month and ride this madness out, but alas, I’m 6 months from caving and resigning myself to 10 years of a depressed Victoria market.

My question is simple: do I suck it up and take the plunge? Or, await a correction because it seems peak house is really happening. Are houses really as expensive as I figure? Before you answer, here are the numbers: my wife makes about 50k pre tax, I make 350k/year in biz income and take home about 150k in employment pre-tax. We have 130k in RRSP, 40k in TFSA, and about 200k sloshed away in my corporation.

If I do buy a house, should I put lots down? What about all the cash in my business account? Should I use this for the house? Or invest it? Sometimes I think I’m crazy with my salary not to just buy a 1M dollar house and figure it out….but hey….crazy likes company.

So, great income but barely enough saved to put 20% down on a million-dollar house. If you use the business money you first have to run it through your hands as income, which means jumping into the 53% tax bracket for a year or two. Ouch. Since the Victoria market is as pooched as Van, thanks to Comrade Premier Horgan, maybe your corp should buy the house. That way it could carry the mortgage and write off any capital loss when prices inevitably decline and you get tired of living in one of the planet’s most boring places.

Of course, you’ll have to declare a taxable benefit for your residency roughly equal to rent, but this way you get to give your entitled, demanding spouse a piece of real estate, protect your personal assets, put the corporate money to work (which Bill Morneau will steal, otherwise) and protect yourself from market declines. Plus you get to stay married.

Regi in Calgary is a big saver, wondering if he should become a big borrower:

My wife and I can be described as a couple of DINK’s making a solid effort at achieving early retirement. We save a substantial portion of our take home income and have loaded up our RRSP’s, TFSA’s, and non-registered funds into low cost index funds. Life is good! We currently have zero debt, our townhouse is mortgage free, but we have a HELOC of $300k @ prime that is currently begging to be invested.

My question to you is that my wife and I struggle to determine if these HELOC funds would be best invested in the market with the hope of exceeding the current interest rate, thus putting our house to work! We struggle with the risk/reward proposition, but I feel that if we sold the house and simply rented we would have already invested those funds, so the only issue is the premium associated with paying the bank the current 3.45% premium for the privilege to access these funds.

What are your thoughts on investing HELOC funds into the market? If our timeline is 10 years or longer would it make sense to put these funds to work?

Cowtown is a sickly housing market with lacklustre prospects. There has been no real estate appreciation for a decade, so you’re probably wise to stay living there for the next ten years and hope for improvement, perhaps when BC is invaded. Regarding a HELOC for investment purposes, this can be a great strategy – but one which comes with risk and the need for steady discipline.

Money borrowed from a HELOC and used to fund a portfolio need never be paid back (unless the bank demands it) since you can make interest-only payments which are not amortized. That means 100% of your cash flow is deductible from taxable income as an allowed expense. If you’re in a 40% tax bracket, the cost of the loan drops to just 2%. Ensure you have a properly-structured ETF portfolio positioned to turn out 7% returns over the next decade (if it matches the gains of the last 10 years), and the $300,000 turns into $600,000, while you pay less tax.

But there are risks. Leverage means you lose more if markets drop. Also HELOCs are variable-rate loans, so the cost will probably rise over the years ahead (but so will the size of the interest deduction you claim). Ensure the portfolio is liquid, so you can bail is rates spike (unlikely). Maintain a long-term focus, resisting the urge of selling out if markets swoon for a while (they always recover). And get an advisor. Borrowing to invest shoves you onto a new voyage, where having a steady professional hand on the tiller is wise.

Finally, a fine suck-up from Alex, the prof. I may adopt him.

Dear Mr. Turner, many thanks for the great work you’re doing with your blog. You are now on the recommended list of readings that I give to the master students I supervise. This is just to reassure you that there are some 30-year-olds that still know how to use their brains.

Married couple here (34 and 35) with three kids under 7-year-old. All registered accounts (RSP, TFSA, RESP) are maxed out and we have significant savings in non-registered accounts. No house, no debt, no car. We never inherited from family members and it is only 3 years now that one of us is making significant. We are careful about expenses but we make sure the kids have everything they need, including fun. The beauty of it: my wife received an invitation to do a PhD a couple weeks ago. Money was never an issue and it will have almost no impact on our financial situation whatsoever. We should have a million dollars in net assets by the time I turn 38. Yay for financial independence (and yes, she decided to accept the offer).

Your blog has been quite useful in thinking about investments and stuff but there is also some common sense here. Please tell me that those people you just presented on your blog aren’t real.

Yes, Alex, as real as you. But we will save this generation, one pathetic blog post at a time.

120 comments ↓

#1 Burnaby North on 04.29.18 at 4:26 pm

It’s amazing how ressilient the Vancouver preconstruction condo market is even after NDP govt’s announcement on the crackdown of assignment flipping

#2 Fake News Again on 04.29.18 at 4:37 pm

The average 30 year old makes $71,000? HAHAHAHAHHAHAHAHA. Aside from overpaid Govt Workers I know of no person in their 30s that makes that much money unless they are part of “daddy’s business”. But Canada has “full employment” too right? Not saying they don’t exist…..but as an average? Not a chance that’s true.

#3 Moses71 on 04.29.18 at 4:40 pm

What about us forgotten Generation Xers blog? Day? Week? Ever?

#4 rental property math on 04.29.18 at 4:47 pm

It’s millennial week? I didn’t get an invite to be a guest speaker.

#5 Reynolds531 on 04.29.18 at 4:49 pm

Am I the only mid forties genx slob who wonders how these millennials all apparently had ROCK STAR guidance counselors in high school?

Seriously, do I need to sign up for trade school? Clown college? Barber academy?

Someone please tell me.

#6 crowdedelevatorfartz on 04.29.18 at 4:54 pm

Spotted $159.9/litre gas price in Burnaby today.
Texted a friend.
He spotted 160.9 in Van.
Bring on the pipeline protesters
$175.9/ litre by Summer……

#7 ww1 on 04.29.18 at 4:58 pm

Moister Week April 29th, 2018
In terms of investing, dump your stocks since that’s simply adolescent gambling, and put everything into the Moister Portfolio described on this blog. You should be on the beach by age 55. Suck it up.

For reference : Moister 101

#8 dss on 04.29.18 at 5:04 pm

aaron wouldnt it be worth considering a loan from the corp to fund the personal residence. I think you can loan from corp for that reason(pretty sure cra has a section about corp loaning $$$ to shareholder at 1% for 25 or 30 years. I think the interest rate and payback is defined for this exact scenario?

#9 VanLoserRenter on 04.29.18 at 5:13 pm

A word to Aaron- I had a tough time getting a mortgage for my corp as it was active- the bank required that the corp be strictly a holdco. The property in question was not my PR, but their concern was that they would be elsewhere but first in line when an active corporation goes under.

#10 Dead Cat Bounce on 04.29.18 at 5:17 pm

#1 Burnaby North on 04.29.18 at 4:26 pm
It’s amazing how ressilient the Vancouver preconstruction condo market is even after NDP govt’s announcement on the crackdown of assignment flipping
——————————————————————
Too funny realtor reporter !
Let’s wait and see how it looks later this fall

M55BC

#11 Interstellar Old Yeller on 04.29.18 at 5:19 pm

Moister Week! Will it be like Misery Week, but with more sugar-free, dairy-free, soy-free lattes?

#12 Whatcha Minnie on 04.29.18 at 5:28 pm

So, my favorite areas to explore were Shinsekai and Dotonbori. Shinsekai felt like a time warp as you quite literally step back in time to a Japan that time forgot, but of course with the added color and livelihood of the 21st Century! Dotonbori is the main tourist thoroughfare in Osaka which is also home to the best street food in Osaka , whilst allowing plenty of opportunities to spend some cash.

#13 Millennial Investor on 04.29.18 at 5:28 pm

Woooo!!!! I love moister questions (mainly because I like to see how I stack up against financially savvy millennials, not the typical consumer dummies). Keep on keeping on Garth….we’d be so lost without you!

#14 For those about to flop... on 04.29.18 at 5:32 pm

Pink Pollen falling in Surrey.

These guys picked up a 57 build assessed at less than 20k for the structure for 1.3m in August 2016.

They did what a large percentage of my cases do,started high and then after no bites move it down to the 7% gain range ,in the hope of getting the buyer to foot the expenses.

It works in a lot of cases ,as people in Vancouver are seemingly frightened to challenge recent history about how to go about negotiations and acquire a property below asking.

Some of my cases however have had very aggressive bids like the case on Shannon Way in Delta, the seller was on the hook for 1.62 and after a painful experience were only asking 1.35 ,but the new owner of that house felt no sympathy and offered 30k less than ask at 1.32 even though most people here seemingly would have thought that 1.4 would have gotten the deal done after invoking the mercy rule.

Maybe the realtors had a beef.

Anyway,back to this one and the assessment comes in at 1.2 and is not far from the beach and so maybe a developer will take a second look at it.

I worked on a new build out that way a couple of years ago,it wouldn’t be the worst place to live.Lots of retired people walking down the middle of the roads as there are no footpaths in a lot of that area.

If it is a young married couple ,I hope the situation is not causing marital stress and the McGroom gets to keep his McBride…

M43BC

3033 Mcbride Avenue, Surrey paid 1.3 August 2016 ass 1.2

Mar 16:$1,499,000
Apr 27: $1,399,000
Change: – 100000.00 -7%

https://www.zolo.ca/surrey-real-estate/3033-mcbride-avenue

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

Feel free to make a donation.

Flop For Fox Fund…

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

#15 Mike on 04.29.18 at 6:00 pm

Hi Garth,

Can you point me to the blog post you made regarding having a property and selling it as a “rent to own”? I have an opportunity to do so and wanted to re-read the post as I remember it being a wealth of info.

#16 JPN on 04.29.18 at 6:05 pm

Aaron,
The wife and I are late 20’s, living in Victoria, making more than you per year with multiples of what you have stashed away. Nonetheless, we rent an entire detached, a stone’s throw from the ocean and short walk along the inner harbour to downtown, from a reputed property management firm who within hours of an e-mail or call will send out the most reputable contractors in town to have a look at any issue. If you want care-free living, that’s the trick – find a place managed by Proline, Brown Bros, etc… then feel out the owner’s situation from the prop manager (i.e “owned my a long-term client with many holdings in town”).. and property-related concerns can evaporate while you spend your limited time and hard-earned money on leisurely pursuits, making more money, and on the kids when the time comes. Even though we could buy a detached cash, the thought of parking that much money in a house makes me nauseous… looking back, if done at various points in various ways, it would have made taking extended breaks for travel, family issues, or rapid reactions to career events/opportunities difficult or impossible. Most of the activities we pursue, toys we enjoy, and life changes we are contemplating now would not be possible. With your earning trajectory, discussions around financial cost comparisons between renting and buying are moot. Irrelevant. What matters is finding balance between daily quality of life and income generation and maximizing both in the long-term. Enjoy the fruits of your hard effort, circumstances, good fortunes with the limited time you have. If your current partner doesn’t share your view point, Victoria has many rad self-made chicks who are into rad stuff who are on similar work/life trajectories.
On a practical note – tight rental market in Vic – showings usually happen within a day or two of a property going up. Scan the prop mgmt sites daily, reply immediately, go to showings with tenancy app, cheques for first/last and *proof of income* ready, and if it checks all the boxes for you, hand em to the manager and watch them tell everyone else to go home. These are your cards to play, so play them.
Cheers

#17 the Jaguar on 04.29.18 at 6:22 pm

Bandit is freshly brushed and fluffed for the Lunenburg photo op. “Am I getting paid (dog treats currency) to promote travel and investment to this locale”?, he thinks?
Appeasement. It didn’t start or end with Neville Chamberlain, you know.

#18 Myra Andrews on 04.29.18 at 6:36 pm

Watcha Minnie #12

Verbatim from http://www.worldofwanderlust.com/trip-japan-complete-japan-itinerary/

#19 BillyBob on 04.29.18 at 6:37 pm

“one of the planet’s most boring places.”

Is someone with a home in Lunenberg really casting that stone?!

Stretches credulity to the max, that one.

Lol

#20 Ryan on 04.29.18 at 6:41 pm

#2 Fake News Again

Garth said $71,000 is household income, not per person. Try reading first before you blow your wad.

#21 Smartalox on 04.29.18 at 6:48 pm

Count me in as another Gen Xer that could use some tips.

My question is this: after years of diligent saving and investing, the Mrs. and I have well-stocked RRSPs and a TFSA for me, and a non-registered account for her (due to dual citizenship).

I’m topping out in my career, and can likely do better as a consultant to many companies rather than as a full time employee at a single company.

What’s the best way to transition from being an employee to launching a personal corporation? Liquidate some RRSP savings to fund start-up and living costs while not working during the transition from worker to consultant?

Or should I divert investments into a start-up capital pool, then use that as an ‘initial investment’ in my personal corp, writing the family members (wife and son) that contribute their savings in as principal shareholders to grant them rights to dividends?

#22 Waiverless on 04.29.18 at 6:49 pm

2 Fake News Again on 04.29.18 at 4:37 pm
The average 30 year old makes $71,000? HAHAHAHAHHAHAHAHA. Aside from overpaid Govt Workers I know of no person in their 30s that makes that much money unless they are part of “daddy’s business”. But Canada has “full employment” too right? Not saying they don’t exist…..but as an average? Not a chance that’s true.
———————————————–
“On average (says Environics) Mills earn a household income of $71,000.”

Household… Household… Say it again… Household

#23 Andrewski on 04.29.18 at 7:02 pm

Sage financial advice as always Garth, a great resource for the less than financially literate who seek direction that their parents, etc may not be able to provide. Good karma.

#24 you're never too old on 04.29.18 at 7:15 pm

eynolds531 on 04.29.18 at 4:49 pm

Am I the only mid forties genx slob who wonders how these millennials all apparently had ROCK STAR guidance counselors in high school?

Seriously, do I need to sign up for trade school? Clown college? Barber academy?

Someone please tell me.

——-
You need tools:

https://www.amazon.ca/Mallory-WS1524A-Bug-Sponge-Squeegee/dp/B009KBUR2Q/ref=mp_s_a_1_5?ie=UTF8&qid=1525043351&sr=8-5&pi=AC_SX236_SY340_QL65&keywords=squeegee&dpPl=1&dpID=41aVvFLj-uL&ref=plSrch

#25 akashic record on 04.29.18 at 7:36 pm

“On average (says Environics) Mills earn a household income of $71,000.”

Household… Household… Say it again… Household

===

I thought at least 40% of Mills live at home the other 50% is single. How convenient is to measure their income in “household”.

#26 Craig on 04.29.18 at 7:37 pm

Re #6 crowdedelevatorfartz

In 2008 oil West Texas crude reached $140.00 a barrell ( it’s $68.00 now) . That’s over double the price of what it is now and the price of gas today is as high or higher than it was back then ? Time for a price gouging investigation.

#27 Leftover on 04.29.18 at 7:43 pm

Hey, #2
My son is 27 and his base salary is $70k with a 15-20% bonus. He went to school (he paid for it), did some time in the boonies, and now saves about 20% of his income (guess what, he rents). He will buy a house some day, I will help him if I can, and no, he doesn’t live in TO or YVR.
There is hope but you have to work for it.

#28 Zapstrap on 04.29.18 at 8:03 pm

#6 crowdedelevatorfartz on 04.29.18 at 4:54 pm

Spotted $159.9/litre gas price in Burnaby today.
Texted a friend.
He spotted 160.9 in Van.
Bring on the pipeline protesters
$175.9/ litre by Summer……

Still cheap if you’re retired … I pity the poor people commuting just to have a job though.

#29 Clever_Title on 04.29.18 at 8:04 pm

#12 Whatcha Minnie on 04.29.18 at 5:28 pm

Not sure what the game is but re-posting verbage from random websites is just kinda weird. Can I suggest a hobby?

http://www.worldofwanderlust.com/trip-japan-complete-japan-itinerary/

#30 Alberta Guy in AZ on 04.29.18 at 8:09 pm

#12 Whatcha Minnie on 04.29.18 at 5:28 pm

Nice try sucker. Busted again.

http://www.worldofwanderlust.com/trip-japan-complete-japan-itinerary/

#31 Macduff on 04.29.18 at 8:13 pm

When JT pulls his 1957 Mercedes 300 sl roadster that is worth $1.5m he will be in for a rude shock at the pumps because this gas is on him, not the taxpayer. Oh the plight of the entitled!

#32 crowdedelevatorfartz on 04.29.18 at 8:21 pm

@#27 Zap
“I pity the poor people commuting just to have a job though.”
+++++

I shake my head at the people driving the HUGE Ford, GM, Dodge pick up trucks with beefed up suspension, oversized tires, etc etc etc.
They must squeal like a pig led to slaughter when they go to fill up at the pumps.

#33 chumpy le chump on 04.29.18 at 8:25 pm

Aaron- read The Rational Male by Rollo Tomassi. You are on your way to misery or divorce, likely both. You are the leader of your family, a role which will become more important once you have the children. If you capitulate now, expect to capitulate when she “needs”to make improvements, renos, add gardens, buy expensive furniture that never gets used.

A strong frame dissolve a weaker frame. Which one are you?

#34 Andre on 04.29.18 at 8:27 pm

I think that Canadian banks may also be playing this game (Australian banks very bad practices are now exposed). It is clearly that the idea that governments should allow for market self regulation is not a sound one. It also substantiate my argument that blaming Millenniums for complaining about their bad hand and labeling them as undemocratic/tribal when asking for government intervention is ignoring the big elephant in the room. The financial system is the one that has to be blamed. They are maximizing profits using practices that clearly do not have their clients interest as a priority and possibly driving the entire system to a collapse. Vancouver/Toronto regions’ RE median prices are so disconnected to incomes that it will clearly impact GDP in Canada and even a moderate correction with take us to daring consequences.

The examples of Millenniums in the post are clearly the exceptions (all are 1%…maybe even 0.5%). The struggles for average and even above average young people are real and should be dealt with using a rational and unbiased approach. Why not discuss banking/finance systems and there responsibility in relation to the high cost of living for this generation. It is not a Canadian problem, it is a global problem since QE came into full speed.

https://www.bloomberg.com/news/articles/2018-04-29/decade-of-banks-behaving-badly-laid-bare-in-australian-inquiry

#35 President of the United States of America candidate for a Nobel Peace Prize on 04.29.18 at 8:34 pm

Larga vida Al presidente Donald J Trump.

#36 Bottoms_Up on 04.29.18 at 8:45 pm

Three kids under seven and no car. Pray do tell how you do soccer and hockey practices, dance recitals, skiing,
doctor, dentist, and school visits, playdates, shopping, going to the beach, public skating, public swimming etc.

I call bs on the story or you live in the best designed city ever.

#37 Yorkville Renter on 04.29.18 at 8:55 pm

Your corp can loan you downpayment, at 1%, virtually in perpetuity… there are ways!

$71k is not that much $$$ for a professional in Toronto… where I bet more Mills live than anywhere else in Canada

my $0.02

#38 People watching people on 04.29.18 at 8:58 pm

Birth lottery is a bitch. My boomer friends tell me that the early boomers made out like bandits, while the late boomers had to endure overcrowded schools, rising house prices and lots of competition for promotions. Then the X’s came along to enjoy 15 student per classroom schools and C- high school grades to get in to U of T and a nice housing bust in the 90s. A lot of late boomers got caught naked when that tide went out.

I suspect the early Moisters will be OK, I know the ones in my office are doing very well. The ones graduating out of Barista college at U of T next month, not so much. Their older cohort brethren got all the breaks, the late Moisters only get some JT sock lint.

And don’t expect AI or robotics to save anyone long term. I predict it will take the same path to lower wages as other earth shattering tech. The early suppliers make the killing, commoditize it and make it into a service and then high-school students can do the work (websites and IT support come to mind), last one in makes peanuts.

#39 Fish on 04.29.18 at 9:04 pm

Hopefully Monday morning they can fix that issue with the market, somebody please flick that switch, and let the good times roll !

#40 I’m stupid on 04.29.18 at 9:17 pm

Something doesn’t make sense with Aaron. He makes 350k a year business income and 150k employment income and has 200k in his business. Has the business only been operating for 1 year? Or does his actual 350k business income not include business expenses?

Why hasn’t he maxed out both Tfsa’s?

Am I missing something?

#41 PBrasseur on 04.29.18 at 10:00 pm

As a generation millenials are likely the most useless bunch ever. They crave public sector jobs, love regulations, bureaucracy and big government and of course debt is not a problem…

#42 Fish on 04.29.18 at 10:41 pm

unorganized property land will be brought into the nearest municipal class and taxed according to municipal for all the improvements,

hopefully they will have garbage pick up in village vill, local fire truck is still running, and emergency vehicle, and if you have any kids that there is a bus to take them to schools ,

the roads are maintained so these vehicles can come out to your humbled place

Let’s not forget government and vacant home tax and more tax

#43 Duke on 04.29.18 at 10:42 pm

#40 I’m stupid on 04.29.18 at 9:17 pm
Something doesn’t make sense with Aaron. He makes 350k a year business income and 150k employment income and has 200k in his business. Has the business only been operating for 1 year? Or does his actual 350k business income not include business expenses?

Why hasn’t he maxed out both Tfsa’s?

Am I missing something?

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

Good point. I had the same exact question when I read Aaron’s story. The math doesn’t make sense to me either.

#44 IMHO on 04.29.18 at 10:45 pm

Just look at all these silly countries repatriating or adding to their pile of ‘rocks’ – eh Garth?

https://www.zerohedge.com/news/2018-04-29/gold-leaving-us-vaults-signs-upcoming-currency-war-and-armed-conflict

Dummies (sarc)

#45 concerned1 on 04.29.18 at 10:57 pm

I like the advice given to the girl. She’s got a condo assessed at $370K in Langley–probably worth $500k once on the market. She can sell it in a week, and she only has $160k worth of mortgage and she’s renting it at $1200 a month–cash flow positive (albeit barely).

The advice given to her paraphrased: “Sell, it’s a crappy investment and the money you tied up in the condo hasn’t earned anything and it’s costing you money.”

Okay. . .seriously Garth? This is the biggest load of crap I’ve heard. I know you have a hate on for real estate, but she got that condo for a song and she’s made a mint on it. At least call a spade a spade.

My advice. Don’t listen to Garth and keep the condo. You have done very well buying it and it will be worth more in 10 years.

#46 Oft deleted much maligned stock.picker on 04.29.18 at 10:58 pm

Check and check …on that Victoria quote….”one of the most boring places to live in the planet,” true day. Went for a week peruse and still can’t get the dopey hippey toe curling toilet potting in the front yard garden mouldy stank out of my nose…..it’s a land that time forgot….out of embarrassment. People smell there….they all do….the ancient decrepit shacks they call ‘ character homes’ ate thick with a mossy unflushed smell that permeates their clothing and automobiles. They seem to think they’re doing well….but only compared to one another. I had conversations like….”My shack was built in 1902 by a fisherman and we still have rotten floats as decoration”. I’m not dishonest and replied…..”Is that what I smell”?

I laughed openly at the self imposed arrogance that a shack which would cost 500 dollars in gasoline to burn down should be prockained as worth a million five. ” Nonsense”, I said…..fishing for matches in my back pocket. If I hadn’t quit smoking and have no need for fire I would be in jail for serial arson. Literally massively overpriced areas like ” Uplands” and Oak Bay would be burning in my wake……garbage dump fire….justified. No one oays a million to live beside people who recycle old toilets and urinals and repurpose them as kawn ornaments…..no one in their right mind that is. Maybe this is what’s wrong with BC…..

#47 Nyx on 04.29.18 at 11:24 pm

Could someone explain, ” That means 100% of your cash flow is deductible from taxable income as an allowed expense,” in a little more detail. I am aware that the interest payments are tax deductible but how does the cash flow portion work?

Thanks!

#48 Fake News Again on 04.29.18 at 11:30 pm

Ryan on 04.29.18 at 6:41 pm
#2 Fake News Again

Garth said $71,000 is household income, not per person. Try reading first before you blow your wad.

_______

1. If that’s TWO mills that makes it worse…….

2. Is there some CanaDUHHH Marxist law I don’t know about that says you MUST be two people earning to be considered “household”? With compelled speech via Bill C-16……I suggest that such a law might exist.

#49 Vanreal on 04.29.18 at 11:40 pm

I find the last story very suspect. Something doesn’t add up

#50 Steve French on 04.30.18 at 12:18 am

Ban Watcha Minnie …

More Smoking Man…. (even though i called for his head a few months back…. about the gun issue).

Steve

#51 Damifino on 04.30.18 at 12:37 am

#41 PBrasseur

As a generation millenials are likely the most useless bunch ever.
———————————-

That’s essentially what my dear old Dad said about me and my friends back in 1971. It’s nice to know someone else now bears that judgement.

In hindsight though, we were definitely more useless than his generation. They saved the world from itself, suffered and died overseas, then the survivors came back home and got down to business without wallowing in self pity as I’m sure I would have done.

My generation? We mostly complained about our poor lot in life, but we eventually did get serious. I suppose the millennials might do the same in good time.

#52 NEVER GIVE UP on 04.30.18 at 12:39 am

#34 Andre on 04.29.18 at 8:27 pm
I think that Canadian banks may also be playing this game (Australian banks very bad practices are now exposed). It is clearly that the idea that governments should allow for market self regulation is not a sound one. It also substantiate my argument that blaming Millenniums for complaining about their bad hand and labeling them as undemocratic/tribal when asking for government intervention is ignoring the big elephant in the room. The financial system is the one that has to be blamed. They are maximizing profits using practices that clearly do not have their clients interest as a priority and possibly driving the entire system to a collapse. Vancouver/Toronto regions’ RE median prices are so disconnected to incomes that it will clearly impact GDP in Canada and even a moderate correction with take us to daring consequences.

The examples of Millenniums in the post are clearly the exceptions (all are 1%…maybe even 0.5%). The struggles for average and even above average young people are real and should be dealt with using a rational and unbiased approach. Why not discuss banking/finance systems and there responsibility in relation to the high cost of living for this generation. It is not a Canadian problem, it is a global problem since QE came into full speed.

https://www.bloomberg.com/news/articles/2018-04-29/decade-of-banks-behaving-badly-laid-bare-in-australian-inquiry

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

It has all been a global fraud of printed fake money created out of thin air and put into the hands of the wealthy at no real interest rates.

I see the relation to the verse, “It is easier for a camel to pass through the eye of a needle, than for a rich man to enter into the kingdom of heaven.”

#53 NEVER GIVE UP on 04.30.18 at 12:42 am

What are the rich going to say to St. Peter at the pearly Gates when asked why they took all the money unfairly?

“Well if the suckers let me scam them. They deserved it, didn’t they?”

#54 Canis on 04.30.18 at 12:51 am

Prof of what, Alex? I also call BS on that story.

#55 cultural elitist on 04.30.18 at 1:05 am

I love the comments condemning millennials as, like, the most entitled generation, like ever. Some historical perspective seems apropos:

When Julius Ceasar was assassinated (44 BC), there was a lot of uncertainty about the future the Roman empire. A major power struggle ensued, and some factions tried to appeal to the independent spirit of traditional Rome, hoping for a return to a republic. To no avail.

According to Mary Beard :
“The majority still preferred the reforms of Caesar – the support for the poor, the overseas settlements and the occasional cash handouts – to fine-sounding ideas of liberty, which might amount to not much more than an alibi for elite self-interest and the continued exploitation of the underclass …”

All I’m saying is, plus ça change …

#56 AACI Home-Dog on 04.30.18 at 1:16 am

photo-shop dog. damn, I must be getting old.

#57 Anti-social,social club on 04.30.18 at 1:43 am

The most obvious problem facing people today is they are clueless about math,interest,debt and investing. Purchases of vehicles and homes is negotiated by payment not price. The term of a loan is irrelevant to them. The amount of people buying used vehicles and homes within a reasonable budget is the minority.Being in debt is the accepted norm, no one is there to educate them differently and most don’t take the advice anyway.

#58 Westcdn on 04.30.18 at 2:35 am

When I think of Canada’s national and provincial debts today, I remember 1994 well. It was Canada’s ‘basket case’ moment. Jean Chretien and Ralph Klein were new on the job. I remember GT hauling a debt clock around with him as he sought the leadership of the PC party in 1993. I have no idea why GT was called a Red Tory. This is the reason Canada kept the GST and I think it was a wise decision.

http://business.financialpost.com/uncategorized/lessons-from-canadas-basket-case-moment

Canada, at a national level, is back to the same levels of Debt to GNP as 1993/1994. Provincial numbers are worse. The notable differences today are interest rates and having plenty of company. I believe today’s story will soon end the same way – 2 years? I suffered my layoff in 1994 and remember well what people did to protect their butt. It was a tough readjustment period for me yet put me on a happier course.

I used to listen to this song while growing up in logging camps – Tennessee Ernie Ford Sixteen Tons (aka the company store). It reminded of my father and why I wanted to go a different direction. That guy was tough and productive but trapped. https://www.youtube.com/watch?v=L2tWwHOXMhI

#59 Buttercup on 04.30.18 at 4:23 am

“#21 Smartalox on 04.29.18 at 6:48 pm
What’s the best way to transition from being an employee to launching a personal corporation? Liquidate some RRSP savings to fund start-up and living costs while not working during the transition from worker to consultant?

Or should I divert investments into a start-up capital pool, then use that as an ‘initial investment’ in my personal corp, writing the family members (wife and son) that contribute their savings in as principal shareholders to grant them rights to dividends?”

You would be wise to consult a knowledgable tax accountant about your plans.
Also Google “CRA personal services corporation”. The small business corporate taxation ‘advantage’ is no longer allowed for personal services businesses, who are seen as “employees” in certain cases, such as IT workers and other consultants.

#60 Howard on 04.30.18 at 4:47 am

#41 PBrasseur on 04.29.18 at 10:00 pm

As a generation millenials are likely the most useless bunch ever. They crave public sector jobs, love regulations, bureaucracy and big government and of course debt is not a problem…

————————————

Nice trolling.

I take it you are of the generation that received dirt-cheap housing, easy and plentiful job market, guaranteed raises every year, employer-funded training, golden handshake, defined benefit pension, free (or nearly free) university education…and despite all those advantages, despite decades of governments showering goodies on them, they STILL are in debt up to their eyeballs and have next to nothing saved for retirement.

“According to the PWC 2017 Employee Financial Wellness Survey, nearly half of baby boomers say they have $100,000 or less saved for retirement.”
http://business.financialpost.com/investing/baby-boomers-playing-with-fire-as-portfolios-pile-on-risk

“According to data from Statistics Canada’s 2012 Survey of Financial Security, 70 per cent of people aged 55 and 64 are still carrying debt, an increase from 61 per cent in 1999. Their average debt level climbed to $107,900 from $60,600 in 1999, even after adjustment to constant 2012 dollars. One-third still have mortgages, 38 per cent are carrying credit card debt and 29 per cent have vehicle loans. Debt levels for people over 65 have climbed even more quickly, with 43 per cent indebted in 2012 compared with just 27 per cent in 1999, while average debt for seniors almost doubled to $61,700 from $31,800. ”
https://ideas.nationalbank.ca/high-debt-loads-limited-savings-weigh-on-boomers/

#61 Buy? Curious? on 04.30.18 at 5:12 am

Hey Garth! I thought Millenials were the emotionally sensitive, easily triggered snowflakes. It more like the white geezers and grannies that seem lose it when they hear something they don’t like. Don’t believe me?

*Trigger Warning*

How much tax should there be on inheritances? Who cares? The greediest generation in the world are going to spend all of it on themselves! They’ve worked hard all their lives and they’ve earned it!

3…2…1 and go.

#62 Gravy Train on 04.30.18 at 5:29 am

#2 Fake News Again on 04.29.18 at 4:37 pm
“The average 30-year-old makes $71,000?”

You have very poor reading skills; no wonder you think everything you read is fake! Garth said the average millennial household has an income of $71,000. Learn to read, and then learn to apply critical thinking skills! BTW, Garth was referring to average income, not average age! :)

#63 OttawaMike on 04.30.18 at 6:32 am

Garth is missing here:

http://www.postcity.com/Eat-Shop-Do/Do/April-2018/2018s-Real-Estate-Roundtable-Our-panellists-predictions-for-the-future-of-Torontos-housing-market/

Never again. It’s a shill session for advertisers. – Garth

#64 dharma bum on 04.30.18 at 7:57 am

It’s Moister Week here at GreaterFool! -Garth
——————————————————————–

Paranoia week was scarier. So far.

#65 Bottoms_Up on 04.30.18 at 8:03 am

Condo special assessment in Ottawa–fees going from $700/mo to $1500/mo.

http://ottawacitizen.com/news/local-news/i-cant-afford-it-owners-outraged-after-monthly-payments-double-at-ottawa-condo

#66 Ian on 04.30.18 at 8:19 am

Zolo GTA this am…inventory rising rapidly and sales levelling way off.

Going to be one ugly summer.

Not according to Al Sinclair on CP24 last week though. Really made me want to invoke Happy Housing after listening to that drivel.

#67 crowdedelevatorfartz on 04.30.18 at 8:24 am

@#38 people watching people
“Birth lottery is a bitch.”
+++++
Truer words never spoken.

@#60 Howard
“they STILL are in debt up to their eyeballs and have next to nothing saved for retirement….”
++++++
You could be speaking about ANY cohort, Boomer, GenX, Millenial….
Generally…..People are crappy savers. Period.

Boomers wasted the money on vacations
Millenials waste it on tattoos.
Either way.
You’ll both have pretty pictures to look at and talk about in the old folks home while a robot changes your diaper.

#68 NYCer on 04.30.18 at 8:34 am

If both spouses make $100k each.

If one loses it’s job and tries to draw down the RRSP, is it worth it? I guess the difference is the marginal tax rate before vs the tax rate now…

If the money is growing inside the RRSP tax-free, and you don’t need it to live on, leave it there. A withholding tax will apply to any RRSP withdrawal, which you’d have to wait until next spring to recoup. – Garth

#69 TurnerNation on 04.30.18 at 8:48 am

70th? Good weather’s here, Blog dogs disappear.

It appears the SCM troll factory is running a demoralization script on this blog . An automatic Minnie posting randomized vignettes as non sequiturs onto this blog daily.

#70 maxx on 04.30.18 at 8:57 am

#29 Clever_Title on 04.29.18 at 8:04 pm

“#12 Whatcha Minnie on 04.29.18 at 5:28 pm

Not sure what the game is….”

Raising insignificance to an art form and polluting the blog with it. Watching paint dry is infinitely more exciting.

#71 Stan Brooks on 04.30.18 at 9:16 am

#68 NYCer on 04.30.18 at 8:34 am
If both spouses make $100k each.

If one loses it’s job and tries to draw down the RRSP, is it worth it? I guess the difference is the marginal tax rate before vs the tax rate now…

If the money is growing inside the RRSP tax-free, and you don’t need it to live on, leave it there. A withholding tax will apply to any RRSP withdrawal, which you’d have to wait until next spring to recoup. – Garth

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

If you need it, take it,

Tax rates on withdrawal:
https://www.getsmarteraboutmoney.ca/plan-manage/retirement-planning/rrsps/making-rrsp-withdrawals-before-you-retire/

* Keep in mind that taxes on RRSP withdrawals will most likely increase significantly down the road as it will be an easy pray for government theft, maybe outright confiscation or confiscation through (for sure) higher withholding tax.
You will lose the RRSP room though.

#72 Danny Zahn on 04.30.18 at 9:22 am

Hey Garth.
If that is his only property, he could claim it as his primary residence and not pay capital gains tax on the sale.

How about a capital loss? – Garth

#73 crowdedelevatorfartz on 04.30.18 at 9:36 am

@#70 maxx

Re Whatcha Minnie

Plagiarizing proof that they have nothing of any substance to add to the discussion at hand.

#74 PastThePeak on 04.30.18 at 10:23 am

#38 People watching people on 04.29.18 at 8:58 pm
Birth lottery is a bitch. My boomer friends tell me that the early boomers made out like bandits, while the late boomers had to endure overcrowded schools, rising house prices and lots of competition for promotions. Then the X’s came along to enjoy 15 student per classroom schools and C- high school grades to get in to U of T and a nice housing bust in the 90s. A lot of late boomers got caught naked when that tide went out.

+++++++++++++++++++++++++++++++++

Each generation likes to make it seem like the ones before and after had it so easy. Not sure where you get your information on GenX only needing a C- to get into school (ok – maybe Carleton as their policy was to admit lots – and then flunk them out…).

If you didn’t have a solid A then forget about anything in STEM. The cutoff for the electrical engineering program I was in was 89%.

In elementary and high school, our classes were always full – between 25-40 students, depending on course (in high school). You seem to make up your own reality – ignoring that when populations go down in an area (baby bust days) that they close schools and redistribute the kids around.

So no, life wasn’t all a bed of roses for GenX. You might even want to read why our generation was given that name…

I don’t think the Mills are a horrible generation, but their expectations for life in their 20’s/30’s (partly set by their boomer parents) is definitely out of whack with earlier ones. Whats with everyone living at home for years, and wanting to jump straight to own a condo? What ever happened to getting out from under your parents skirt, renting a house with 5 of your buddies to control costs, and living from there…?

#75 Another Deckchair on 04.30.18 at 10:24 am

#8 dss

The interest rate recently went up to 2% for shareholder loans.

https://www.taxtips.ca/smallbusiness/shareholderloans.htm

has some words for those interested

#76 Calgary Rip Off on 04.30.18 at 10:45 am

“Cowtown is a sickly housing market with lacklustre prospects. There has been no real estate appreciation for a decade”

Huh? What about when the same house in 2004 was $250K, then 3 years later it is $400K? All shacks overpriced by at least $200K in Calgary. All investors should not invest in Calgary real estate. Shacks are places to live not investments.

#77 Sonny on 04.30.18 at 11:15 am

‘It’s going to be painful’: Jumping mortgage rates further squeeze indebted Canadians

https://www.bnnbloomberg.ca/it-s-going-to-be-painful-jumping-mortgage-rates-further-squeeze-indebted-canadians-1.1068814#_gus&_gucid=&_gup=Facebook&_gsc=QMYEefV

#78 For those about to flop... on 04.30.18 at 11:17 am

But who is selling all the petroleum jelly…

M43BC

“This Map Shows Every State’s Biggest Export.

Is the United States sparking a trade war with the rest of the world or not? We aren’t quite sure what President Trump is thinking, but his recent comments on trade did get us thinking about what impact some of his proposals might have on different industries. So we created a new map demonstrating which industries export the most products in each state across the country.

We created out latest map in three steps. First, we used US Census Bureau data to identify the most prevalent export industries in 2017 in each state. Then we assigned a color for each category or industry, generating a snapshot of the geography of exports. Finally, for each state, we labeled the specific sector within the category, so that a state that is light blue for “Machinery/Transportation” is labeled specifically “Airplanes,” “Trucks,” etc. on the map. This lets you quickly and easily see which states (and regions) depend on which export industries for economic stability and growth.

Top Ten States Most Dependent on Exports ($M)
1. Washington (Airplanes): $41,848M

2. Texas (Petroleum oil): $23,365M

3. Louisiana (Petroleum oil): $13,441M

4. New York (Diamonds): $12,173M

5. Kentucky (Airplanes): $11,649M

6. California (Airplanes): $7,142M

7. Florida (Airplanes): $6,317M

8. Nevada (Gold): $6,285M

9. South Carolina (Airplanes): $6,275M

10. Georgia (Airplanes): $5,844M

We can summarize the ten most export-dependent states by looking at only three industries: airplane manufacturing, natural resources, and precious metals/stones. As you might expect, states heavily dependent on natural resources are typically grouped together. There are three main petroleum-rich states across the South: Texas, Louisiana, and Mississippi. A group of coal mining states can be found in the North East, including Virginia, West Virginia, and Pennsylvania, and there’s gold to be found in western neighbors New Mexico and Nevada.

What may be more surprising is that manufacturing states tend to be grouped together, too. The Southeast is home to several states which are heavily dependent on sending airplanes to overseas buyers. That being said, airplane manufacturing is stretched across the country, with states from Kansas ($2,565M) to California ($7,142) illustrating that the supply chain for building airplanes clearly stretches far and wide.

And that leads us to the state at the very top of the list: Washington is the most heavily dependent on exports by far, almost doubling second-place Texas. That’s thanks almost entirely to the presence of Boeing. The company sells both commercial jetliners and aerospace technology (think rockets) to other civilian companies and governments around the world. This explains why the media covers the potential impact to Boeing for every nuance of [b]trade war rhetoric[/b] emanating from the White House.

So what is the biggest takeaway from our map? Building and manufacturing airplanes for the global market is deeply important in 17 states, totaling just under $100 billion in exports, and that’s not even the entire value of national airplane exports—that’s just for those states in which it is the leading export. The threat to President Trump’s pro-tariff agenda is that other countries may retaliate with their own protectionist measures, ultimately hurting companies like Boeing. If that happens, the economic damage will ripple across the country, in the airplane manufacturing industry as well as in the many other export industries that are key pieces of different states’ economies.”

https://howmuch.net/articles/biggest-export-from-each-state

#79 Guy In Calgary on 04.30.18 at 11:23 am

Have missed a bunch of posts as I have come back to Ontario as a family member passed away. Certainly gained some perspective. Anyway, I enjoyed this post as it shows there are like minded people in our cohort. Keep fighting the good fight GT and fellow mills.

#80 Ronaldo on 04.30.18 at 11:31 am

#65 Bottoms_Up on 04.30.18 at 8:03 am

Condo special assessment in Ottawa–fees going from $700/mo to $1500/mo.

http://ottawacitizen.com/news/local-news/i-cant-afford-it-owners-outraged-after-monthly-payments-double-at-ottawa-condo
—————————————————————
The joys of condo living. One of the reasons I will never buy into these things. Would be safer to rent. Good luck trying to sell those units. Self owned condos are great for developers as they pass on all the problems associated with these dumps onto the people that buy them. Great scam.

#81 Ronaldo on 04.30.18 at 11:41 am

#51 Damifino

My generation? We mostly complained about our poor lot in life, but we eventually did get serious. I suppose the millennials might do the same in good time.
—————————————————————
Yes, but your generation grew up 10 years sooner than they are. They are still living in their parents basements and riding their skate boards at 30. Both my Gen X sons were out of the house at 19 and doing great. Same as most Boomers.

#82 Fake News Again on 04.30.18 at 11:51 am

Gravy Train on 04.30.18 at 5:29 am
#2 Fake News Again on 04.29.18 at 4:37 pm
“The average 30-year-old makes $71,000?”

You have very poor reading skills; no wonder you think everything you read is fake! Garth said the average millennial household has an income of $71,000. Learn to read, and then learn to apply critical thinking skills! BTW, Garth was referring to average income, not average age! :)

_____

As said earlier…..”where” is it written down that “household” means more than one earner? And I stand by my point. If you exclude overpaid Govt workers the “average millennial” does not make $38/hour or $71000 a year. I would challenge anyone to find 50 people across the country aged 28-37 and average their yearly salaries……it will not be $71,000. If that were the case there would not be a glut of “interest only ” mortgages and 30 year old kiddies living in their moms basement.

#83 Leo Trollstoy on 04.30.18 at 12:00 pm

Jen x, boomies, mills, who cares?

I’m cruising around Jamaica and Haiti

$US all day er day

#84 Dead Cat Bounce on 04.30.18 at 12:03 pm

#80 Ronaldo on 04.30.18 at 11:31 am
#65 Bottoms_Up on 04.30.18 at 8:03 am

Condo special assessment in Ottawa–fees going from $700/mo to $1500/mo.

http://ottawacitizen.com/news/local-news/i-cant-afford-it-owners-outraged-after-monthly-payments-double-at-ottawa-condo
—————————————————————
The joys of condo living. One of the reasons I will never buy into these things. Would be safer to rent. Good luck trying to sell those units. Self owned condos are great for developers as they pass on all the problems associated with these dumps onto the people that buy them. Great scam.
——————————————————————
Yes, I agree the new built condos are junk !
I’ve owned and lived in 4 different condos in YVR in last 15 years, 2 older 70’s North Van High rises (normal issues and upgrades done but solid buildings) I live in them and sell and make a little cash along the way, the last 2 units, 1 East Van built in 2008 was a decent build. However the last unit built in 2016 out in Maple Ridge was a total piece of crap. Thankfully I sold and got out, I very much doubt that building will last 10 years as the issues it had in the first 16 months before I sold (1st one to sell btw) were numerous. New builders don’t care and if any of you believe the ‘warranty’ will be there to fix things you are very sadly mistaken. Very much a scam !

M55BC

#85 Art Vandelay on 04.30.18 at 12:27 pm

The average 30 year old makes $71,000? HAHAHAHAHHAHAHAHA. Aside from overpaid Govt Workers I know of no person in their 30s that makes that much money unless they are part of “daddy’s business”. But Canada has “full employment” too right? Not saying they don’t exist…..but as an average? Not a chance that’s true.
—————————————————————–
I also thought the 71k number was very high. I am 31 and earning 70k/yr and it took me a long time and many years in my industry to get to this point. I don’t know many other people my age that are making the same, but they’re out there. I’m in the private sector, but we work alongside a government agency and it’s nuts to see what these kids are making. It’s a little unsettling especially when I see them playing games on their phone all day. Or else napping..yes i’ve seen them napping. Life is hard.

#86 There she blows on 04.30.18 at 12:33 pm

#80 Ronaldo on 04.30.18 at 11:31 am

#65 Bottoms_Up on 04.30.18 at 8:03 am

Condo special assessment in Ottawa–fees going from $700/mo to $1500/mo.

http://ottawacitizen.com/news/local-news/i-cant-afford-it-owners-outraged-after-monthly-payments-double-at-ottawa-condo
—————————————————————
The joys of condo living. One of the reasons I will never buy into these things. Would be safer to rent. Good luck trying to sell those units. Self owned condos are great for developers as they pass on all the problems associated with these dumps onto the people that buy them. Great scam.
__________________________________________
Already seen it starting here in the GTA. Just wait until all the boomers bail on their old large homes on small lots for 50 cents on the dollar and jump into a condo. All hell is going to break loose when they realize that their pensions can’t keep pace with the home owners fees. You have no control at all. Old building or new they all have the same issues eventually. Agree better to rent let some other schmuck pay for the condo fees when they increase, you can always bail free of worries .

#87 NEVER GIVE UP on 04.30.18 at 1:13 pm

A refresher video about the banking fraud.
People have short memories.

https://www.youtube.com/watch?v=0yZ5mjbB11I

#88 Waiverless on 04.30.18 at 1:28 pm

#82 Fake News Again on 04.30.18 at 11:51 am
Gravy Train on 04.30.18 at 5:29 am
#2 Fake News Again on 04.29.18 at 4:37 pm
“The average 30-year-old makes $71,000?”

You have very poor reading skills; no wonder you think everything you read is fake! Garth said the average millennial household has an income of $71,000. Learn to read, and then learn to apply critical thinking skills! BTW, Garth was referring to average income, not average age! :)

_____

As said earlier…..”where” is it written down that “household” means more than one earner? And I stand by my point. If you exclude overpaid Govt workers the “average millennial” does not make $38/hour or $71000 a year. I would challenge anyone to find 50 people across the country aged 28-37 and average their yearly salaries……it will not be $71,000. If that were the case there would not be a glut of “interest only ” mortgages and 30 year old kiddies living in their moms basement.

————————————————————–
Doubling down on your bad math eh… Some households are 2 people.. some are not. On ‘average’ these combinations of households earn 71k. It’s not hard to understand. And exclude government workers? Sounds like you just got an axe to grind with that category or workers else why exclude them. If we’re excluding them let’s toss out all the oil and gas workers in Alberta.. they’ll skew the numbers up right… or the millennial age workers at Timmies.. they’re messing up the average too aren’t they. Stop making it about 50 people and make it 50 households like Garth mentioned and you will easily get 71k. Hint that’s two wager earners making 35k and 36k (terrible salaries) in one household. Now realize many are making much more to balance your single earner households. See not so hard when you work it out – if you can take a moment to stop hating on the ‘overpaid government workers’ to consider it

#89 Big Kahuna on 04.30.18 at 1:44 pm

OH NO-South Korean leader says Trump should get the Nobel Peace Prize-I think the MSM grifters are going to have a total nervous breakdown over this one-feel free to delete this scary report.

#90 crowdedelevatorfartz on 04.30.18 at 1:47 pm

Gas is $161.9/litre in the lower Brainland.
Highest ever seen in North America

#91 IHCTD9 on 04.30.18 at 1:58 pm

#26 Craig on 04.29.18 at 7:37 pm

In 2008 oil West Texas crude reached $140.00 a barrell ( it’s $68.00 now) . That’s over double the price of what it is now and the price of gas today is as high or higher than it was back then ? Time for a price gouging investigation.
___

CBC already investigated, and it found all kinds of well worn explanations for the insane prices (except new and increased taxes).

I remember folks lining up to buy 1.40 gas when WTI was 140+ because tomorrow it would be 1.50.

There’s no point asking why. We’re simply getting hosed by over 60%. US averages are about .93 CAD/Litre everything corrected.

Government can’t do anything about it other than lowering the dizzying qty of taxes they have applied over the years. Don’t hold your breath waiting for that to happen.

#92 For those about to flop... on 04.30.18 at 2:04 pm

#90 crowdedelevatorfartz on 04.30.18 at 1:47 pm
Gas is $161.9/litre in the lower Brainland.
Highest ever seen in North America

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

Hey Crowdie,I paid 1.88 a litre in the outback of the Yukon six or seven years ago.

Could be considered cheap soon…

M43BC

#93 Duke on 04.30.18 at 2:06 pm

#90 crowdedelevatorfartz on 04.30.18 at 1:47 pm
Gas is $161.9/litre in the lower Brainland.
Highest ever seen in North America

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

Crap!

#94 IHCTD9 on 04.30.18 at 2:14 pm

#2 Fake News Again on 04.29.18 at 4:37 pm
“The average 30-year-old makes $71,000?”
______

In 2019 Ontario, a married couple serving coffee at Timmies will earn 62400.00 before any OT.

That’s the very bottom end household income for two people that work in Ontario full time doing anything. The only way it gets lower for adults is when one refuses/can’t work.

I remember getting out of College thinking that if my wife and I could manage to make 17.00/hr ea. (71K/yr.), we’d be set lol!

It’s incredible, but nowadays – a couple of dropouts working at McD’s 50hrs per week make an annual household income of almost 86K!

#95 Stan Brooks on 04.30.18 at 2:16 pm

#91 IHCTD9 on 04.30.18 at 1:58 pm
#26 Craig on 04.29.18 at 7:37 pm

In 2008 oil West Texas crude reached $140.00 a barrell ( it’s $68.00 now) . That’s over double the price of what it is now and the price of gas today is as high or higher than it was back then ? Time for a price gouging investigation.
___

CBC already investigated, and it found all kinds of well worn explanations for the insane prices (except new and increased taxes).

I remember folks lining up to buy 1.40 gas when WTI was 140+ because tomorrow it would be 1.50.

There’s no point asking why. We’re simply getting hosed by over 60%. US averages are about .93 CAD/Litre everything corrected.

Government can’t do anything about it other than lowering the dizzying qty of taxes they have applied over the years. Don’t hold your breath waiting for that to happen.

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


Oh, wait, it will be 3 bucks pretty soon, we are late in the credit/business cycle. Oil and gold could well double from here, maybe triple. (think 5 bucks gas)

Of course the main reason are the oligopolies, the real owners of this place.

They want their profits folks. People rich enough to pay 1.5 mil for a crack shack in Vaughan or 800 k for a glass condo with 2 bedrooms 8 x 7 feet in Toronto should be able to afford 3, even 4 bucks per liter of gas.

No? It looks like a very sound logic to me.

#96 SimplyPut7 on 04.30.18 at 2:16 pm

#65 Bottoms_Up on 04.30.18 at 8:03 am
#80 Ronaldo on 04.30.18 at 11:31 am

I hate condos because of the out-of-control maintenance fees and elevator problems in Toronto. I have a coworker who had all of the elevators in their building were not working one day last week. They are on the 30th floor.

What if there was an emergency in the building, how would the paramedics get you down all of those stairs?

#97 IHCTD9 on 04.30.18 at 2:17 pm

Gas is around 1.38 locally. I don’t mind, it keeps the pile of incentive to fuel my vehicle with something other than gasoline getting taller.

#98 YVRvan on 04.30.18 at 2:22 pm

#1 Burnaby North on 04.29.18 at 4:26 pm

It’s amazing how ressilient the Vancouver preconstruction condo market is even after NDP govt’s announcement on the crackdown of assignment flipping

///////////

that’s because it’s a fully rigged ponzi scheme. the fall will be biblical. Don’t worry, the CRA will be coming for your undeclared profits.

Flipping of condo units by insiders fuels hot Vancouver market

https://www.theglobeandmail.com/canada/article-flipping-of-condo-units-by-insiders-fuels-hot-vancouver-market/

There’s a paywall. Register to support investigative reporting if you can afford it. If not use this link:

https://web.archive.org/web/20180430015335/https://www.theglobeandmail.com/canada/article-flipping-of-condo-units-by-insiders-fuels-hot-vancouver-market/

#99 NEVER GIVE UP on 04.30.18 at 2:22 pm

One of the Elephants in the Lower Mainland Room is the phony Agricultural land reserve.

Its just a way to keep RE prices high.

BC in fact has more irrigable land than most countries in the world!

The Lower Mainland Agricultural Land Reserve is not for Agriculture.

Ok There are a few Blueberry and Strawberry farms.
No real Agriculture to speak of.

Just a way to appease militant environmentalists who oppose anyone else getting a house except them.
NIMBYism at its finest.

Also a way for The RE industry and Tax collectors to keep prices artificially high.

More Fraud that’s all!

#100 SimplyPut7 on 04.30.18 at 2:23 pm

#86 There she blows on 04.30.18 at 12:33 pm

Or install an elevator in your current home, that’s much cheaper than paying the maintenance fees on the shoe box condo in the long run.

Luckily most condos in the GTA were bought by speculators and not boomers.

#101 jess on 04.30.18 at 2:27 pm

34 Andre on 04.29.18 at 8:27 pm
the homogenized
may 8 intergenerational 2 year study in the uk
i read it takes 14 years to save for a deposit in san fran.

climate program Nile Blue

..”Russia’s geoengineering project march 23 1971 -set off three Hiroshima-scale nuclear blasts deep underground in a remote region some 1,000 miles east of Moscow, ripping a massive crater in the earth. The goal was to demonstrate that nuclear explosions could be used to dig a canal connecting two rivers, altering their direction and bringing water to dry areas for agriculture.The nuclear bombs, it turned out, weren’t that effective for building canals, though they did create an “atomic lake” in the crater formed by the blast. But the tests had another lasting consequence, all but forgotten until now: They set in motion the first U.S. government research on climate change — a far-reaching project that has continued into this decade. When the director of DARPA heard about the blasts and their purpose, he had an immediate reaction: “Holy shit. This is dangerous.”
…They set in motion the first U.S. government research on climate change — a far-reaching project that has continued into this decade.
In this installment, Sharon Weinberger shares a story that was left out of “The Imagineers of War: The Untold Story of DARPA, the Pentagon Agency That Changed the World,” recently published in paperback by Vintage.
https://undark.org/article/wilo-imagineers-of-war/

#102 NEVER GIVE UP on 04.30.18 at 2:27 pm

Greenhouses can easily be housed in industrial parks. They are just buildings that efficiently grow food with much more reliability that outdoor growing.

Industrial land is fast drying up and the investors are bidding up the prices faster than a Chinese acrobat can check himself for cellulite!

#103 Jim on 04.30.18 at 2:29 pm

#84 Dead Cat Bounce on 04.30.18 at 12:03 pm

#80 Ronaldo on 04.30.18 at 11:31 am
#65 Bottoms_Up on 04.30.18 at 8:03 am

Condo special assessment in Ottawa–fees going from $700/mo to $1500/mo.

http://ottawacitizen.com/news/local-news/i-cant-afford-it-owners-outraged-after-monthly-payments-double-at-ottawa-condo
—————————————————————
The joys of condo living. One of the reasons I will never buy into these things. Would be safer to rent. Good luck trying to sell those units. Self owned condos are great for developers as they pass on all the problems associated with these dumps onto the people that buy them. Great scam.
——————————————————————
Yes, I agree the new built condos are junk !
I’ve owned and lived in 4 different condos in YVR in last 15 years, 2 older 70’s North Van High rises (normal issues and upgrades done but solid buildings) I live in them and sell and make a little cash along the way, the last 2 units, 1 East Van built in 2008 was a decent build. However the last unit built in 2016 out in Maple Ridge was a total piece of crap. Thankfully I sold and got out, I very much doubt that building will last 10 years as the issues it had in the first 16 months before I sold (1st one to sell btw) were numerous. New builders don’t care and if any of you believe the ‘warranty’ will be there to fix things you are very sadly mistaken. Very much a scam !

M55BC
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Had two units, one mid town Moore Park and the other Dovercourt area. First unit my new car was dinged three times, my parking neighbour claimed not me? The security cameras didn’t cover the area and going to security was like trying to get police information on a crime. They will not give you any information. You have to go to the board. Condo boards are useless. Window seals failed took two years to get the board to replace. One elevator broke (four in building) took 7 weeks to get going. On the 15th floor, slow commute down at 7:30 everyday. Second building the neighbours were wonderful until they had moved out and rented their place. Let me be clear unless you have 2-3 metres of airspace between you and your neighbour you hear everything. The renters were terrible. That was it for us, one year later and we were out. Rent a low rise and its not our problem.

https://torontolife.com/real-estate/condos/condowars-neighbour-vs-neighbour/

#104 NEVER GIVE UP on 04.30.18 at 2:31 pm

If the Okanagan and Nicola valleys were turned into greenhouse operations they could produce more than California. We just don’t have the manpower and the willpower.
It’s easier to sit in a house and make 15k a month than work a business.
That business is finally ending after 18 years.
Thankfully.

#105 NotLegalAdvice on 04.30.18 at 2:32 pm

#5 Reynolds531 on 04.29.18 at 4:49 pm
Am I the only mid forties genx slob who wonders how these millennials all apparently had ROCK STAR guidance counselors in high school?

Seriously, do I need to sign up for trade school? Clown college? Barber academy?

Someone please tell me.

______________________________________

This will explain it all……

https://www.amazon.ca/Wealthy-Barber-Successful-Financial-Planning/dp/0773762167

#106 crowdedelevatorfartz on 04.30.18 at 2:33 pm

@#92 Floppie
“Hey Crowdie,I paid 1.88 a litre in the outback of the Yukon six or seven years ago.
Could be considered cheap soon…”
++++++

Yeah , apparently the pricing is based on Large urban centers.
They said the gas price in Massett Haida Gwaii( Queen Charlottes) is $178.9.

Up up up!

#107 Shawn Allen on 04.30.18 at 2:36 pm

Canadian’s Personal Debt Problems

Always remember that it is Canadians’s personal debt problem. Not Canadians’ personal debt problem. The placement of the apostrophe makes a world of difference.

“We” Canadians don’t have a collective debt problem. Only some of us have a debt problem.

#108 Stan Brooks on 04.30.18 at 2:42 pm

But the good news with $ 3, 4, 5, … gas is that there will be ‘growth’ folks. Everyone will be rich.

#109 Gravy Train on 04.30.18 at 2:54 pm

#82 Fake News Again on 04.30.18 at 11:51 am
“As said earlier, ‘where’ is it written down that ‘household’ means more than one [income] earner? And I stand by my point.”

Do I understand you correctly? Are you saying that each and every millennial household consists of one income earner?

Well, folks, we now appear to be in a post-truth (or Trumpian) world in which we can all just make up our own facts. When did this all happen, BTW? :(

#110 Leo Trollstoy on 04.30.18 at 3:00 pm

Tech booming so hard that Amazon looking to hire 3000

https://www.theglobeandmail.com/canada/british-columbia/article-amazon-to-expand-vancouver-hub-create-3000-new-jobs/

Go git er!

If u think tech isn’t booming u prolly suck. Don’t apply

#111 Stan Brooks on 04.30.18 at 3:03 pm

This insanity grows bigger by the day.

https://ca.finance.yahoo.com/news/trudeau-announces-amazon-bringing-3-173048340.html?guccounter=1

Now tell me who in their right mind will work for 100 k before taxes, 64 after, in a crazy retail culture like Amazon in a city where houses cost 2 mil plus?

T2 will need to subsidize their housing.

#112 PastThePeak on 04.30.18 at 3:25 pm

#94 IHCTD9 on 04.30.18 at 2:14 pm
#2 Fake News Again on 04.29.18 at 4:37 pm
“The average 30-year-old makes $71,000?”
______

In 2019 Ontario, a married couple serving coffee at Timmies will earn 62400.00 before any OT.

That’s the very bottom end household income for two people that work in Ontario full time doing anything. The only way it gets lower for adults is when one refuses/can’t work.

I remember getting out of College thinking that if my wife and I could manage to make 17.00/hr ea. (71K/yr.), we’d be set lol!

It’s incredible, but nowadays – a couple of dropouts working at McD’s 50hrs per week make an annual household income of almost 86K!
++++++++++++++++++++++++++++++++++

I certainly agree in principle. However, no business is going to give employees those hours (otherwise business will say – make the person full time). So employee needs to have two jobs to get those 40-50 hours. Scheduling between the two will be challenging to say the least.

It certainly does illustrate that a go-getter couple with no education and serving in a minimally skilled role can hit the Canadian medium family income. With the advent of kids the income is only partially dented, and after the kids get school age, if one parent works part time, they will make the same or more (depends on # kids).

Not going to cut it in the GTA though…

#113 For those about to flop... on 04.30.18 at 3:27 pm

pm
@#92 Floppie
“Hey Crowdie,I paid 1.88 a litre in the outback of the Yukon six or seven years ago.
Could be considered cheap soon…”
++++++

Yeah , apparently the pricing is based on Large urban centers.
They said the gas price in Massett Haida Gwaii( Queen Charlottes) is $178.9.

Up up up!

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

Hey Crowdie,no doubt,I’m pretty sure we were on a reservation at the time ,and I might have even gotten the Tasmanian Tiger price.

Besides the price, the worst thing about that fill up was the hose wasn’t connected to the nozzle properly and maybe 10% of the gas ended up on the ground.

Upon re-entering the vehicle my wife asked me why I was crying.

I told her I had dust in my eye…

M43BC

#114 Stan Brooks on 04.30.18 at 3:32 pm

#110 Leo Trollstoy on 04.30.18 at 3:00 pm
Tech booming so hard that Amazon looking to hire 3000

https://www.theglobeandmail.com/canada/british-columbia/article-amazon-to-expand-vancouver-hub-create-3000-new-jobs/

Go git er!

If u think tech isn’t booming u prolly suck. Don’t apply

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

No-news/fakenews, these will never be filled by sane people.

#115 232 on 04.30.18 at 3:36 pm

Garth,
Seriously, where do you find these rich kids? These are the top 1%, who had lots of money gifted by their parents, and their schools paid for.

Do you even realize how much schooling costs? Undergrad is worthless nowadays and you’ll be 25 by the time you finish your masters degree. A couple would easily accumulate 100K-150K in school debt. You then need a car to take you to work and back (we don’t all live in downtown TO), and a place to live. How is it possible for a regular person/couple to have the kinds of wealth these late 20s or early 30s yrs old have, while paying their bills? I’m sure you can do math. That’s not possible.

So rather than helping the 1% here (and giving them a pat on their back for accumulating so much wealth gifted by their parents) how about you help the average Canadian? They are the ones most in need of help; not the rick kids that have so much money that they don’t know what to do with them. By average i mean: average household wage coupled with average household debt.

Please share advice on the best way to reduce usual debt for people our age (school loan, car loan, CC loan, etc), and what kind of tax shifts/claims we can do to help us out. Please try to help the 99% of the population; we are the ones that need you the most.

[My better half and myself are both professionals, we drive beat down cars, live frugal, and our only debt is our mortgage. We are having a hard time making ends meet. We can’t even afford to put our kids in sports. I honestly can’t understand how our friends are making less than us, are driving new cars, and live a more extravagant life; I’m guessing their HELOC is getting maxed out…]

Maybe your friends were smart and eschewed the crippling costs of home ownership. – Garth

#116 Jamie Dimon on 04.30.18 at 3:47 pm

Oh hells ya! I effin love moister week! Maybe we can have neck tats and divisified portfolios after all.

#117 Tony on 04.30.18 at 4:14 pm

Re: #114 Stan Brooks on 04.30.18 at 3:32 pm

Both Amazon and Netflix are a sad reflection of the state of the world economy. Retail closing and no one can even afford cable television anymore. The higher these two stocks go the worse the world economy becomes. I just sit here and shake my head as these imbeciles don’t get it at all.

#118 NoName on 04.30.18 at 4:14 pm

104 NEVER GIVE UP on 04.30.18 at 2:31 pm
If the Okanagan and Nicola valleys were turned into greenhouse operations they could produce more than California. We just don’t have the manpower and the willpower.
It’s easier to sit in a house and make 15k a month than work a business.
That business is finally ending after 18 years.
Thankfully.

Toshiba was toying with same idea few years back with their empty space, they were making organic lettuce. Over the time I red few article about utilizing rooftops for greenhouse, but all that is moving at very slow pace. basically it’s all hydroponics setup, buy now days only thing people that are interested in hydroponics are mj growers…

https://www.theguardian.com/sustainable-business/food-blog/2014/oct/23/salad-electronics-companies-indoor-farming

#119 dharma bum on 05.01.18 at 8:34 am

Gnarly. But we may have more to worry about. – Garth
——————————————————————–

https://www.youtube.com/watch?v=BSOESfsNd4w

#120 LangleycondoMill. on 05.03.18 at 11:50 am

#115 232 on 04.30.18 at 3:36 pm

Lol you say we are 1% to have money saved and affordable mortgages? I think your a bit confused… I haven’t received any inheritance nor do I come from a rich family, I do however make the choice to stay at home with my mother or at times with my grandfather. I worked 2 jobs at times and don’t feel the need for shiny things, or credit card debt. I find it hard to believe that two professionals living under one roof and driving second hand vehicles can’t afford to enroll their children into sports. Is it possible that you didn’t use any common sense in regards to your sleeping quarters? Over spending on a nanny? Avocado toasts and Almond milk lattes? It’s not professional to assume, I got lucky that the real estate bubble inflated my condo other than that dont be scared to get your hands dirty and you two can also add some zeros to that mobile bank account.