No easy choice

Pete asked me this week about dollar-cost averaging after he got a honkin’ big refund from the CRA for moving expenses. “Man, they took forever to respond,” he says, “but now I have this money and wanted to ask you if I should invest it in chunks to avoid making a mistake.”

DCA, of course, is gambling. By withholding money from a portfolio, where it can be doing some useful work, you hold it back in a gamble assets will get cheaper. But if they rise in value you pay more, or continue to sit on cash. So you might win, you might lose. If history is any guide, this strategy’s a fail. Especially lately.

In the past 12 months the Dow has gained 22%, the S&P 500 is ahead 21% while the tech-heavy Nasdaq (despite Facepalm) has surged 29%. Even the laggard market on Bay Street has added 12% since this time in 2017 – which is more than you can say for houses in the same city.

Markets don’t go down just because they go up. The conditions which led to the gains have to change. So far, when it comes to equity markets (especially American ones), no change. In fact this week investors are feeling frisky.

Stocks made new highs on news of the Trump US-Mexico trade deal. As mentioned here yesterday, the betting is Canada will join in. In fact, we have no choice. Failure to do so will result in punitive auto tariffs and tumbleweeds blowing through the empty streets of Oshawa and Windsor as unemployed CAW members shuffle hollow-eyed towards the water. A new NAFTA, called something else, is a done deal.

But the political cost to T2 could be excruciating. Trump has a hate-on for supply management. If Trudeau punts the dairy industry he’s toast in much of Quebec – where a majority of the 75 federal seats went red. This might also fry young Andrew Scheer, who won his Conservative mantle in part with the support of the milk guys (over Max Bernier, who just stabbed him). Losing Quebec means losing government for the Libs. Thumbing Trump, however, is perilous for the entire economy. And the government. No easy choice here. The deplorables are storming the gate.

$    $    $

The latest from Victoria: Sales are down so far in August by 21.5% (over last year). The number of listings is up 32%.

In Calgary sales in August are off 8%, listings are up 22% and the time it takes to sell a house has advanced 24%.

Vancouver is a mess.

$    $    $

“I’m a big fan of your blog – I usually read it out loud each night to my wife before we go to bed,” writes Julius. This worries me.

We are both 30 and sold a home in Ottawa in 2014 when I was transferred to Toronto. We had around $225k in equity after the deal was done and attempted at that time to purchase in the Big Smoke, eventually giving up after losing several bidding wars. We ended up renting a loft (ya I know…millennials) that we thought would just be a holdover for a year or so, but we’re still here 4 years later. We both work downtown and we would like to start a family in the next couple of years and our loft, although great for us now, is definitely not a place that we can raise a baby.

We invested the equity from our house and as a result, have about $350k in accessible investments. Over the last couple of months, we’ve been moving to a cash position on roughly half of that amount to be prepared in case we see something we want to buy (and because of volatility fears due to the orange man in the white house). In addition, my wife has a defined benefit government pension and our gross combined annual income is around $225k/year.

We’d like to buy a house soon, ideally in our neighbourhood (Leslieville/Beaches). We have recently reached out to our agent  (who is a family friend and someone we trust) and started looking for houses. Like our agent, we truly believe the value the of homes in our area is steady and will outpace the rest of the GTA market. I don’t see commuting times getting better and think people will be willing to pay a premium to live in houses near the core (albeit in a tiny semi). Although I religiously read your blog, I can’t help but have a FOMO feeling. Despite trends in the GTA market, when I look at the TREB data for these specific neighbourhoods, prices are continuing to rise with relatively low average days on market and many sell over asking with multiple offers.

We expect that if we do proceed with a purchase, that we would live in this house for at least 10 years – which should give us enough time to ride out any short term correction. But…the price-tag to get something in this neighbourhood (a semi) that will work for us will be in the order of $1.2M. We would put down 20% to retain some of our investments in our TFSA’s (I figure there’ll be about $50k) and feel comfortable with the monthly payments that come with a mortgage of this size.

I know this seems very much like we will be putting all of our money into a singular asset, which from reading your blog I understand is a big mistake…but I don’t think we’re quite as bad as some of the cases I’ve seen you write about. Maybe I’m kidding myself? But if we can’t do it in our financial position, then who is buying these houses? I’d love to know your opinion.

Please feel free to use any or all in your blog.

If you actually recite this blog to your sweetie in bed (A really. Bad. Idea.) be careful. Lysistrata, dude. It’s out there.

First, what’s the motivation for buying, taking on a $1 million mortgage, gutting your investments and morphing into your parents? A baby, apparently. But baby won’t know or care if you live in a loft for a year or two, nor require its own room during that time (or so I’m told). This urgency is totally manufactured.

Is it FOMO then, fear if you don’t buy now you never will?

Illogical, since we know the conditions that created stupid prices – record-low rates, sloppy lending practices and rampant speculation – are now behind us. Do not fall victim to realtor self-interest (and never hire a friend to buy a house or invest money for you). Ignore the media. Use common sense. Do you really want to spend a decade in half a house in an intensely urban area inhaling the neighbour’s pot smoke, raising a young child?

Financially, this could be a disaster as much as a boost. Your wife’s DB pension might go poof if you decide to have a couple of kids and eschew day care. Could you survive – house overhead, a seven-figure mortgage, the costs of raising children while saving and investing for the future – on one income? What about job loss for you? If you have a million-dollar mortgage and less than a hundred grand saved, where’s the Plan B?

The bottom line seems simple. You’re free, earning lots of dough, with growing investments, living in a place you like with no borrowing or responsibility. Your life has flexibility and liberty. Your work sounds full of promise and meaning. If you stayed on the present course your net worth would be at least $4 million by age 60, providing an eternal income of two or three hundred thousand.

But you want a baby, a semi and debt? Ugh.

This is why nobody should ever read this blog in bed.

140 comments ↓

#1 Happy Housing Crash Everyone! on 08.28.18 at 4:58 pm

You useless SHYSTERS sicken me. You know you are useless POS. The Toronto SHYSTER board should be shut down by the government with the whole lot of SHYSTERS arrested .

BREAKING: TREB argues agents can’t publish real estate sold data unless behind a password restricted login.

Threatens to revoke membership and MLS access from agents that do not comply; legal action against non-compliant individuals and service providers.

#ToRe #cdnpoli https://t.co/QPIWWVFeZM

You SHYSTERS objective is to be the biggest Shysters you can be.

#2 HoweStreet.com on 08.28.18 at 4:59 pm

Ross Kay on HoweStreet.com Radio:
Interest Rate Hikes Could Cause Catastrophic Recession.
Blame Politicians for High Rents.

https://www.howestreet.com/2018/08/27/interest-rate-hikes-could-cause-catastrophic-recession/

#3 HT on 08.28.18 at 4:59 pm

Top 3 baby!

#4 blogdog on 08.28.18 at 5:01 pm

I love this blog

#5 Ottawan on 08.28.18 at 5:03 pm

Julius, the solution is easy… Move back to Ottawa!

#6 dakkie on 08.28.18 at 5:04 pm

Bad News For The CRASHING Canadian Economy! – Inflation & Interest Rates Rise

http://www.investmentwatchblog.com/bad-news-for-the-crashing-canadian-economy-inflation-interest-rates-rise/

#7 Smoking Man on 08.28.18 at 5:07 pm

38 Gravy Train on 08.28.18 at 3:32 pm
#123 Smoking Man on 08.28.18 at 9:44 am
“[…] Anyone with an IQ as high as mine realizes this.” Don’t you mean to say ‘an IQ as low as yours’? :)

“[…] I’m thinking Garth is a mistfuos[….]” Smokey, did you mean to write the word mischievous? Or are you writing in the language of the people from your planet, Nictonite? Is the name of your imaginary planet supposed to be an anagram of the word nicotine? (It doesn’t quite work.)

Which reminds me, Smokey: Have you signed up yet as a space cadet for Trump’s Space Force? :.
…….

Haha, I just made 100 bucks in a bet with a colleague . Said teacher gravy train would not be able to resist commenting on my above comment. Even said you would use [ ] The IQ and the faux errors would be too much for you.

Until you can figure out how to build a swap pricer from scratch , an automated fx trading system, you will always be little people to me.
Good code smiths who understand the business inside out are rare.

English majors are a dime a dozen.

Dr Smoking Man
Phd Herdonomics.

#8 Balraj Dhalandar on 08.28.18 at 5:07 pm

Another “30 year old” making $225k per year. Isn’t this getting redundant?

How many 30 year olds make that kind of money? Oh unless you’re a Clerk at Toronto Hydro. Haha!

#9 Willy H on 08.28.18 at 5:08 pm

Had no idea that this blog was bedtime reading for so many folks.

A whole new market for Viagra!

#10 SmarterSquirrel on 08.28.18 at 5:17 pm

I live in a semi in the Danforth area. Very similar to the Leslieville neighbourhoods. Easy TTC access, cafes, grocery stores, banks, restaurants, parks all nearby. And I rent. Have been for years and I rent for a lot less than the carrying cost of buying a semi. Instead of putting all my money in buying a house, I put my money in investments. Those investments pay me enough passive income that when the company I worked for cut my job, I realized I didn’t need to find another job. Now my investments pay my rent and all other expenses and even after paying for it all there’s enough left over to go back into my portfolio so it keeps growing. Had I bought a house instead, most of my money would’ve gone to paying for the house and then after losing my job I’d be scrambling to sell it or trying to figure out a way to keep making payments. Heed Garth’s advice. Financial freedom is much better than taking on $1m in debt for a house you could easily rent.

As for dollar cost averaging. I disagree with Garth. I do a lot of research to find stocks with long term growth potential. Once I find one, though I’m confident in the long term prospects, you never know where the price might go in the short term. So I buy my position in a stock over several purchases. (And I keep a diversified portfolio of stocks never putting too much of my portfolio into any one stock). For example I started buying SHAK around $38 and bought it a few times between $38 and $30 winding up with an average price of about $33. It closed around $58 today. So if a stock has strong fundamentals for the long term to me it makes sense to average out your buy price to take advantage of when the market undervalues a stock. But it’s a lot of work. If you have a small portfolio and little understanding of financial statements and business do as Garth says and stick with ETFs. (My work on figuring out SHAK is explained here…https://smartersquirrel.com/invest/will%20shake%20shack%20do%20to%20burgers%20what%20starbucks%20did%20to%20coffee)

#11 International Fomo on 08.28.18 at 5:18 pm

Hit the nail on the head with:

“who is buying these houses?”

yes they are asking that in New Zealand, Switzerland, Australia – all over the world this question resounds.

#12 Karl on 08.28.18 at 5:19 pm

Garth, I agree with you on this one, mostly because of the house price and location given they want a family.

However, one of your main points against home ownsership (if certain financial circumstances are there) is job loss. Surely people can just sell their home if worse comes to worse. They could even use the equity in their LOCs for emergency. That area probably wouldn’t take long to sell if they absolutely had to.

#13 Fish on 08.28.18 at 5:36 pm

Cannabis firms ‘worth nothing’ right now, portfolio manager war

https://www.bnnbloomberg.ca/cannabis-firms-worth-nothing-right-now-portfolio-manager-warns-1.1129039

#14 Bezengy on 08.28.18 at 5:45 pm

T2 standing beside a gloating Trump declaring victory on the biggest trade deal in the history of mankind, oh what a site? I’m no Liberal but if T2 wants to tell this idiot to go pee up a rope, I’m prepared to eat beans for awhile.

#15 1% Prepper on 08.28.18 at 5:46 pm

It’s people like Julius that keeps me coming back to this blog. I love being front row center for someone else’s train wreck to come. If he claims to be such a regular reader, he must really be stupid to even consider what he’s proposing.

As opposed to Julius, my wife and I make more than they do, and we have 2 DB pensions. And I wouldn’t even DREAM of a $1M mortgage. We refuse to even have a mortgage half that big. We’re renters. You know the modern day lepers of our society. By renting, we are able to pay for daycare for our 2 kids, take 2 expensive vacations a year, fully fund our TSFAs, RRSPs, and RESPs, and I have enough left over to support my classic car hobby. Oh yeah, we live rent free too, thanks to the ever increasing dividends and portfolio growth.

Thanks Garth, your blog has given me more freedom than you’ll ever know.

#16 Dave on 08.28.18 at 5:50 pm

If all we want is for the Real Estate pricing to come down then the simple solution is to UNITE.

Step 1. Everyone on this blog should list their house well below market value and then creatively kill any offers that come to the table. Won’t cost you a cent, real estate agent bares all the costs.

Step 2. Take the house off the market after a couple of months and relist at an even LOWER price. This will force everyone in the market place to do the same. The elite & billionaires used the same strategy in reverse to increase prices. Any time the market stalled they all bought to kick start prices into overdrive – FOMO took over from their and the masses followed. We just need to steer the fear into the right direction.

Step 3. Take the house off the market after a couple of months and relist at an even LOWER price.

I mention this now because the timing NOW is just perfect for a serious market correction. If you agree, post something similar on all your social media accounts. Taking control is the best route for all our futures verses taxing Canada to death.

#17 Wait There on 08.28.18 at 5:52 pm

Methinks T2 will choose tumbleweeds and blame it on the USA. He’ll choose to protect the seats he has in Quebec and take a chance that the rest of Canada will blame the Donald. If he disses supply management two things are for sure. He loses Quebec and he takes down what his father put up. Not going to happen. Without Quebec he is toast.

#18 Renter's Revenge! on 08.28.18 at 5:54 pm

#8 Balraj Dhalandar on 08.28.18 at 5:07 pm
Another “30 year old” making $225k per year. Isn’t this getting redundant?

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

They actually said their combined income is $225k per year. Regardless, why would you expect anything else? What would a letter from someone with low income say?

“Hi, I’m an avid reader of your blog and I love your sense of humour and abs. I rent an apartment in Gastown, and I make $30k after tax, which is completely absorbed by my living expenses. What should I do with my zero dollars of discretionary income? Not buy a house, or not invest?”

#19 crowdedelevatorfartz on 08.28.18 at 5:57 pm

My God.
The amount of people who admit to reading this blog for years and…..

They STILL don’t get it!

Unbelievable

#20 Linda on 08.28.18 at 5:57 pm

Just did a quick search of homes for rent. 11 Parkwood Avenue Main Toronto is a 3 story, 2 bedroom/2 bath house for rent for $3,650 per month. So Julius & his spouse who want a child should look into renting houses & find out if that lifestyle is something they would want to have long term before trying to buy. Yes, they’d be paying rent of $43,800 per annum with the distinct possibility that rent might increase. But a mortgage of say 1.2 million which leaves them with perhaps 50K in their TFSA’s after 20% down, land transfer taxes etc. is not the wisest move, especially if markets are indeed declining. Leslieville may of course be immune to any market decline but this couple can afford to wait & see what happens now that housing stats can be published w/o the realtors being able to obfuscate the data. Even Leslieville might see a price reduction once the blinders are off.

#21 Don't Believe The Hype on 08.28.18 at 5:58 pm

Seriously Julius,do you read this blog “each night to your wife”? You should know the answer already.

#22 All cash for 8 years strategy on 08.28.18 at 6:01 pm

Not sure if I am too late, but after being priced out of a house (or not accepting prices which exceed long-term survival) – during what was supposed to be a transition after the last sell and having to move around to find a good fit home – I have been educating myself on what to do with a pile of cash. It has really gone nowhere in 5 years, while houses and equities have pretty much made big gains making a couple hundred thousand look like nothing.

I actually don’t like cash. Holding onto it makes it seem like worthless depreciating paper. But not having learned more about financials until the past 5 years, I went with what I was told. Save your money in a bank for a rainy day. I have always paid cash for stuff. But saving your money in a bank doesn’t cut it as others leap frog you with wealth growth. Inflation stings. I do however, still think that my money going nowhere in a bank is a better move than buying an overpriced house that I would like to have, but can’t afford and probably never will, which would eventually financially ruin me anyways.

#23 Jean Berry on 08.28.18 at 6:06 pm

As long as Trump and Trudeau are in office, we should expect great returns from the markets I’d say. If the midterms go ot the democrats, then maybe move some of the USA holdings to Intl Markets. That would be about it I’d think..preferreds looking good with upcoming rate hikes.

#24 Danny on 08.28.18 at 6:09 pm

Garth…you clearly are right : “created stupid prices – record-low rates, sloppy lending practices and rampant speculation – are now behind us. Do not fall victim to realtor self-interest ”

How often do people need to read your repetitive message on “stupid prices ” to understand?

Maybe most people are visual learners and need more simple graphics…like a chart that goes back 10 years to show ridiculous and unsubstantiated reasons for housing prices in Toronto to see that it’s the same product only…pushed by emotional need.

The fairly new highest density area in Toronto…around the railway lands and waterfront has a very large unexpected high increase of people over extending their stay in those condos….and yes with babies.

The biological clock keeps ticking and the number of youth of the railway lands is so high that City Planners screwed up in their predictions of future trends that a 2 billion dollars large bridge called a park is being planned over the railway lines….because of the unexpected number of children.

Of course the taxpayers are going to be stuck with this cost instead of the developers who got off easy with not providing park space on the ground instead of basically an overpass which like the Gardiner Expressway….will crumble as all bridges do….and of course will require the tax payer to rescue it.

And Julius……..that real estate friend…… is not equipped with the know how of the degree and cost of repairs for all those things that will need future replacement…and there goes another friendship.

Realtors are taught to be quiet and let the buyers emotions take over….and that is just the first rule of selling or buying someone else’s building! The other rule if they represent the buyer….show them historical comparable…..that are high in price…not the deals.

There are so many more tricks up some realtors sleeve..friend or not.

#25 Zapstrap on 08.28.18 at 6:09 pm

Here you go dawgs … Garth presents another “hoisted on his own petard.” Have at im’ …

#26 Sam the Sham on 08.28.18 at 6:11 pm

“Markets don’t go down just because they go up.”
——————————-
No but they will do a reversion to the mean on a regular basis.

https://www.investopedia.com/terms/m/meanreversion.asp

#27 Jungle on 08.28.18 at 6:13 pm

You sold house in 2014, net 225k. Invested it: now worth 350k. Congrats!

But what did you do with 225k household income between 2014 and now? Shouldn’t you have a least some savings after 4 years?? Especially high income.

For your purchase, don’t bother. Buy in the East end of GTA and get a house half that price. Take the go train in.

1m mortgage is nuts. Shackles!

#28 Jungle on 08.28.18 at 6:15 pm

Is it common to lie about your income? Everyone on the internet makes 100k+, and 200k+ household.

#29 Kootenay Hippie on 08.28.18 at 6:17 pm

Don’t DCA. Market goes up 70% of the time.

#30 Jungle on 08.28.18 at 6:24 pm

In 2008-9, the average toronto detach was around 500k.

It’s now 1.3M

There is a thing called lost opportunity, however there is a thing called new opportunity.

The best time to plant an oak tree was 20 years ago. The second best time is, now.

#31 Reximus on 08.28.18 at 6:27 pm

“We expect that if we do proceed with a purchase, that we would live in this house for at least 10 years –”

Buy it if in Leslieville, but stop reading this blog in bed, your spawn will be a doomer about everything :)

#32 Steve on 08.28.18 at 6:28 pm

Hopefully T2 calls Trump bluff. We cannot have a trade deal with the USA courts resolving disputes! Trump needs congress to approve trade deals, it may not happen without Canada.
The Cons are true cons, trying to avoid discussion about supply management, where poor single mothers subsidize rich farmers. Max had no choice, must be true to yourself.
Given the current leadership, we are screwed!

#33 Wrk.dover on 08.28.18 at 6:34 pm

You can easily pay $1000.00 on your principle 1000 times. A million dollars! Paid down. In full.

Just like you have grown your savings every week?

#34 Happy Housing Crash Everyone! on 08.28.18 at 6:35 pm

I should of mentioned you dirty SHYSTERS are finished. The housing market is going down and real numbers and sales data will still come out. It’s really interesting seeing how crooked and fearful the SHYSTERs are from the truth being revealed.

Happy Housing Crash Everyone! :-)

#35 Totalchaos on 08.28.18 at 6:38 pm

Julius – don’t rush to buy a house because you want a kid. A million years ago, we bought a teensy house that was just right for the two of us. I couldn’t have imagined having kids in it.

25 years and 4 kids later, we’re in the same house. Every time I thought of moving, it was going to take a minimum of 500k + moving expenses.
We considered building too, but that was just as outrageous. All that cash went into our portfolio instead. At this point we choose to work while our friends with similar incomes fret about university costs, rising rates and if they will ever retire. They can’t sell up, because junior lives in the basement.

The added bonus of a small place and large family is there is no room for crazy amounts of toys/stuff. Kids learn to share and not expect a steady stream of stuff. They also don’t plan on living at home in their thirties because at some point, bunk beds just aren’t cool.

This sounds like you are at least two years away from having a kid that is walking, let alone needing their own room. There is no need to even think about buying now.

#36 tccontrarian on 08.28.18 at 6:42 pm

My thoughts on a couple items:

“In the past 12 months the Dow has gained 22%, the S&P 500 is ahead 21% while the tech-heavy Nasdaq (despite Facepalm) has surged 29%.”GT
………..
You don’t drive a car by looking in the rear-view mirror. Investing is the same – you don’t look back to see what’s coming up ahead.
I’m of the opinion that it’s never been more dangerous to jump into the (US) market! I emphatically disagree with you on this one Garth.
There as some bargains in the resource-heavy TSX, but the US market is a short (or just ‘avoid’).

http://www.metalsnews.com/Metals+News/BusinessInsider/The+Business+Insider+The+Money+Game/HEADLINE1230736/The+stock+market+is+stretched+to+double+techbubble+extremes+according+to+one+measure++heres+why+investors+should+be.htm


Markets don’t go down just because they go up. -GT
—-
On the other hand, they can’t actually go down unless they’ve gone up. And they’ve been going up for 9 years!
So, is it different this time??

*****

To the FOMO dude – you’re one step away from ruining your financial life (by succumbing to FOMO). Go ahead, it’s YOUR life.

TCC

#37 crowdedelevatorfartz on 08.28.18 at 6:51 pm

@#30 Jungle
“The best time to plant an oak tree was 20 years ago. The second best time is, now…..”
+++++

Do they really teach these corny metaphors at Realtor school or did you find them in your Grandpa’s joke book?

#38 Darryl on 08.28.18 at 6:53 pm

Hmmmm
Does he lose the two seats in NDP leaning Windsor or the seats in Quebec.
Justin will throw us under the bus if it comes to giving way on the cow thingy .
He’s a drama teacher first and a Quebecer second . Then a woman and then a climate specialist and then a UN wanabee .Canadian is way down his list of priorities .

#39 crowdedelevatorfartz on 08.28.18 at 6:57 pm

@#1 Happy Housing Crash Everyone

“TREB argues agents can’t publish real estate sold data unless behind a password restricted login…….

Threatens to revoke membership and MLS access from agents that do not comply;

legal action against non-compliant individuals and service providers.

++++++

Ahahahahahaha.
Not to worry HHCE.

Apparently TREB doesnt quite comprehend “Supreme Court of Canada” rulings.

Anyone can start posting verifiable stats and TREB can TRY to sue…….
No Court in the land will hear their case.
The “Supreme’s” took their last chance away……

If I may be so bold as to steal a corny “Jungle’ metaphor.

TREB, gasping and flopping aimlessly, like a fish on land.
Unable to understand whats happening…..Doomed to expire.

Happy Housing Crash Everyone.

#40 paul on 08.28.18 at 6:58 pm

#1 Happy Housing Crash Everyone! on 08.28.18 at 4:58 pm

You useless SHYSTERS sicken me. You know you are useless POS. The Toronto SHYSTER board should be shut down by the government with the whole lot of SHYSTERS arrested .

BREAKING: TREB argues agents can’t publish real estate sold data unless behind a password restricted login.

Threatens to revoke membership and MLS access from agents that do not comply; legal action against non-compliant individuals and service providers.

#ToRe #cdnpoli https://t.co/QPIWWVFeZM

You SHYSTERS objective is to be the biggest Shysters you can be.
—————————————————————–
Well at least you were number one tonight. Just wondering how long were sitting with the site open and refreshing every 3 seconds. lol

#41 BS on 08.28.18 at 6:58 pm

If Trudeau punts the dairy industry he’s toast in much of Quebec – where a majority of the 75 federal seats went red. This might also fry young Andrew Scheer, who won his Conservative mantle in part with the support of the milk guys (over Max Bernier, who just stabbed him). Losing Quebec means losing government for the Libs. Thumbing Trump, however, is perilous for the entire economy. And the government. No easy choice here.

Rumor was Trump was willing to overlook the dairy when he flew out of the G7 in the Spring. Gave T2 a verbal deal. Then T2 made his “we won’t be pushed around” speech as Trump was on the plane flying to NK. The guy is dumb.

Of course it is still an easy choice. Getting rid of supply management would make sense even if Trump didn’t want it. It is a tax on Canada food staples where families including the poor pay the tax and the proceeds go to wealthy corporate dairy farmers. Trump gives T2 an excuse. Lets see if T2 is smart enough to take it.

#42 BS on 08.28.18 at 7:02 pm

30 Jungle on 08.28.18 at 6:24 pm
In 2008-9, the average toronto detach was around 500k.

It’s now 1.3M

Within 2 to 3 years those 2008-9 prices will be back. Just hope those hold and we don’t go all the way back to 2003 prices.

#43 kommykim on 08.28.18 at 7:02 pm

RE: “Lysistrata, dude. It’s out there.”

Thanks Garth, that was an entertaining Google/Wiki search. I’ll never look at a cheese grater the same way again.

#44 tccontrarian on 08.28.18 at 7:02 pm

So, how ‘healthy’ are the N.A. markets?
Bubbles everywhere…

NYTimes article:

The Big, Dangerous Bubble in Corporate Debt
By William D. Cohan – a former investment banker and the author of four books about Wall Street.

“The $30 trillion domestic stock market seems to get all the attention. When the stock market sets new highs, we instinctively feel things are good and getting better. When it tanks, as happened in the initial months of the 2008 financial crisis, we think things are going to hell.

But the larger domestic debt market — at around $41 trillion for the bond market alone — reveals more about our nation’s financial health. And right now, the debt market is broadcasting a dangerous message: Investors, desperate for debt instruments that pay high interest, have been overpaying for riskier and riskier obligations. University endowments, pension funds, mutual funds and hedge funds have been pouring money into the bond market with little concern that bonds can be every bit as dangerous to own as stocks.
…”

Careful out there!
tCC

#45 Reximus on 08.28.18 at 7:08 pm

I should of (sic) mentioned you dirty SHYSTERS are finished. The housing market is going down and real numbers and sales data will still come out. It’s really interesting seeing how crooked and fearful the SHYSTERs are from the truth being revealed.

Happy Housing Crash Everyone! :-)

_____________

Show us on the dolly where the realtor touched you

#46 Tony on 08.28.18 at 7:14 pm

Re: smartersquirrel

Dollar cost averaging and ponzi’s don’t go together. Don’t dollar cost average into a ponzi.

#47 crowdedelevatorfartz on 08.28.18 at 7:14 pm

Well…….
Freeland has her work cut out for her.
The US and Mexico have cut a deal.
Mexican auto workers will have to be paid a much higher wage to make US workers/cars more competitive…..
Several items agreed upon were NOT what Canada was willing to sign up for.
Let’s see what sort of banal generalities spew forth as the Liberal Public Relations campaign cranks up….
One thing that may quietly disappear…..Gender Rights….for the simple reason Mexico and the US dont give a $h!t?
OR its hard enough getting trade agreement consensus without tossing the “gender equality” grenade in the room.
Either way.
I’ll be amazed if Canada signs anything except the hotel meal chit this week…..or next week …..or the “weak” after that…..
Will the Canuck buck tumble as the trade talks drag on? Or will a late Sept. “Poloz Pump” do the trick?

Only Butz knows for sure.

#48 Cherry Picker on 08.28.18 at 7:15 pm

You already have the solution and you don’t realize it. Keep romantically reading Garth’s blog to her and you won’t ever have a baby.

#49 NoName on 08.28.18 at 7:18 pm

#11 International Fomo on 08.28.18 at 5:18 pm
Hit the nail on the head with:

“who is buying these houses?”

yes they are asking that in New Zealand, Switzerland, Australia – all over the world this question resounds.

they are nor aksin in Switzerland who is buying what rules over foreign realeste ownership are strict and very well defined.

https://www.bj.admin.ch/dam/data/bj/wirtschaft/grundstueckerwerb/lex-e.pdf

#50 Evangeline on 08.28.18 at 7:26 pm

I’m happy to read that Canada is likely going to negotiate a new deal because a lot of people are discussing the possibility that Trudeau won’t play.

One thing that that I read that I didn’t like is that the US is going to ask that Canada open up to US banks.
If that happens, I wonder if USA banks in Canada would have to obey CDN banking laws, or if CDN banking laws would adopt US standards.

Furthermore, supposedly if Canada says no to US banks setting up in Canada, the USA will retaliate by shutting down Canadian bank branches in the USA.

#51 KLNR on 08.28.18 at 7:31 pm

honestly Julius, renting with a family in TO suuuuckkks.
You and your partner make good coin, buy what you can afford and enjoy your life.

Yes, enjoy owing $1,000,000 in a rising rate environment. What’s not to love? – Garth

#52 Chico on 08.28.18 at 7:33 pm

#23 Jean Berry on 08.28.18 at 6:06 pm

As long as Trump and Trudeau are in office, we should expect great returns from the markets I’d say. If the midterms go ot the democrats, then maybe move some of the USA holdings to Intl Markets. That would be about it I’d think..preferreds looking good with upcoming rate hikes.

———————————————————–

I think Trump is going to end the Afghan war and brings the troops home. Bye bye socialists.

#53 Evangeline on 08.28.18 at 7:35 pm

#41 BS

“Of course it is still an easy choice. Getting rid of supply management would make sense even if Trump didn’t want it. It is a tax on Canada food staples where families including the poor pay the tax …”

I really wonder how middle class famiiies in the process of raising children are managing to keep up with the high costs of dairy products.

#54 Brandon Koepke on 08.28.18 at 7:39 pm

Hey Garth,

I’m probably preaching to the choir but lump sum vs DCA is really about tail protection not average case performance.

For an investor with 10+ years from retirement I would almost always recommend lump sum, but for individuals close to retirement (or who just received a huge inheritance, proceeds from sale of their business, etc) DCA can reduce the dispersion of returns.

I also wouldn’t be surprised if DCA is more expensive than just hedging tail risk directly during the first year… Do you know of any research comparing DCA vs directly hedging?

https://personal.vanguard.com/pdf/ISGDCA.pdf

Someone about to retire has 20-25 years of investment runway ahead. Faulty logic. – Garth

#55 MF on 08.28.18 at 7:43 pm

#28 Jungle on 08.28.18 at 6:15 pm
Is it common to lie about your income? Everyone on the internet makes 100k+, and 200k+ household.

-I like your sarcasm.

Think online dating, where the men add 2 inches to their height and the women take off 10 pounds from their weight.

MF

#56 Ace Goodheart on 08.28.18 at 7:48 pm

Re: Julius:

Lesliville and the Beaches are a transit desert. No subway unless you can walk to the Danforth. Slow, clunky, crowded, unreliable street car service with no dedicated street car right of way. You might as well walk downtown It’d be quicker.

You want a cheap house that has ridiculously fast commute times, a one stop direct airport connection, direct link to both the university and Yonge subway lines by underground rail, a brand new community center with pool and indoor running track?

Want a detached house with parking and back yard for under 800k?

Come to Mount Dennis.

The crosstown transit hub opens in two years.

Direct downtown by UPX with one intervening stop. Will take about nine minutes.

Oh and as for babies well we have experience with that. We made a baby room. Spent months workimg on it. Three months in, baby has yet to spend a night in that room.

#57 yvr_lurker on 08.28.18 at 7:49 pm

Between a rock and a hard spot:

Well, this is far from my domain of expertise, but my sense
is that if we completely knuckle-under to all sorts of demands by Trump about dairy management, sunset clauses, etc.., then when Trump is long gone it will be difficult to renegotiate our way back to what we will have lost in this round with future presidents. We will be at a lower starting point in any future bargaining.

All of this action really goes to show that there needs to be a different mindset in Canada to become a little less reliant on the U.S. and others (i.e. the corrupt Saudi’s) going forward so that we can not be at the whim of our “supposed” friend. Build the pipeline to Atlantic Canada and to the west coast, and facilitate the LNG operation in Kitimat. This is indeed a risk, but we need to cultivate other markets (not just the U.S.), and think of our interests here first. It is a long process, self-reliance is the way to go.

I would never buy the hormone-laced cheap milk from the U.S. anyway. Canadian Consumers can still have some voice.

#58 BobC on 08.28.18 at 7:52 pm

Does Garths rule of 90 still apply to 30 year olds?

#59 Freebird on 08.28.18 at 7:59 pm

Hothouse earth avoidable?
https://youtu.be/1kzQob3LfDg

Biggest barrier to fighting climate change isn’t technology – it’s humans (NSDT)
https://youtu.be/DkZ7BJQupVA

#60 Proctor & Gamble on 08.28.18 at 8:01 pm

How can you say Dollar Cost Average is a gamble because it means holding cash on the sidelines….yet the other side your mouth is telling people to say on the sidelines of the housing market? Isn’t that gambling too because housing could keep increasing?

Both stocks and housing are at all times highs. One of these asset classes will experience a 30% decline at some point in the future. Anyone care to gamble which one?

Buy a house if you can afford one and are able to maintain balance in your life. What don’t you understand about that? As for DCA, it’s gambling, pure and simple. – Garth

#61 KLNR on 08.28.18 at 8:06 pm

@#42 BS on 08.28.18 at 7:02 pm
30 Jungle on 08.28.18 at 6:24 pm
In 2008-9, the average toronto detach was around 500k.

It’s now 1.3M

Within 2 to 3 years those 2008-9 prices will be back. Just hope those hold and we don’t go all the way back to 2003 prices.
_________________________
You honestly think prices in TO will drop 60%+?
Scary times ahead if that happens. (for almost everyone)

#62 jess on 08.28.18 at 8:06 pm

…. about supply management? when trump needs to look in their own backyard

“At $4.79 billion and counting, the Foxconn megadeal is the third-costliest subsidy package in U.S. history—and 39 times bigger than any prior deal in Wisconsin. It’s too many eggs in a risky high-tech basket….
===
his new scary meme “violence”
The President pleads with evangelical leaders for help, saying the midterms are ‘a referendum on your religion’
Trump warns evangelicals of ‘violence’ if GOP loses in the midterms
https://www.cnn.com/2018/08/28/politics/trump-evangelicals-midterms/index.html

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

Green slime oozing from Lake Okeechobee is polluting Florida’s pristine waterways that flow east and west from the lake and eventually south into the bays and oceans. This disaster has caused a dramatic decline in the economy.

https://www.cnn.com/2018/08/28/politics/florida-algae-primary-election/index.html

“The state admits it will take 25 years to break even on its own $3 billion part of that. Betting that a high-tech product will even be here a quarter-century from now is like betting on modems or beepers or MP3 players.

https://www.goodjobsfirst.org/news/releases/good-jobs-first-statement-foxconn-groundbreaking-southeast-wisconsin

https://www.goodjobsfirst.org/news/releases

===========

#63 604’er on 08.28.18 at 8:11 pm

None of these guys read this blog, they just write in hoping Garth will approve their delusions that like everyone else that’s about to put themselves in a terrible position that, “It’s different with them”!

#64 jess on 08.28.18 at 8:15 pm

Author: Pence ready to govern if Trump stumbles

Newsroom
In a new book, co-author Michael D’Antonio says Vice President Mike Pence believes God is calling him to become president.
Source: CNN

https://www.cnn.com/videos/politics/2018/08/28/mike-pence-michael-dantonio-book-nr-sot-vpx.cnn/video/playlists/donald-trumps-potential-vice-president/

#65 Moe on 08.28.18 at 8:16 pm

Dairy farmers no longer rule the country as most folks think.
Not even 11k left in Canada.
http://www.dairyinfo.gc.ca/index_e.php?s1=dff-fcil&s2=farm-ferme&s3=nb

Down from a peak of over 70k a few years, most are quite well off with the average dairy farmer in Ontario a millionaire on the strength of self governed management.

They no longer rule politicians so if T2 is drawing a line in the sand for them, it has to be personal.

They are theoretically important in less than 10 ridings in Canada. Times have changed. But who knows how Quebec would react.

Maybe we will get lucky and be able to reap lower costs on our close to world highs prices in dairy, chickens, cable bills, cell phones and banking costs if Trump takes T2 to the woodshed.

#66 Bigrider on 08.28.18 at 8:24 pm

Talking to Nonno about the state of affairs in Canada. He actually made me laugh today..less serious than usual. Your blog came up Garth. He’s starting to like you.

Quote ” tell dis Garth dat a da stock marcato gonna get a hit lika all a da goons ona Tony Soprano” . ” alla dis a paper he buy and sell .. she mean a nuting”

He went on

“da housa price, she’sa gonna turn around and go uppa lika da firsta tima your nonno see nonna with her clothes off ” (ona da wedding nighta only notta lika u younga people today ahh….you eat for free)

You haven’t convinced nonno of a price decline Garth.

#67 crossbordershopper on 08.28.18 at 8:54 pm

all i know is that the dog is like a canadian looking over the fence at the good food in the usa.
so a couple works and rents and has a few dollars and lives and works in the city. great
they should be first figuring out how to pay less tax, a million mortgage that you cant deduct ya, its the envious dog looking at our american cousins.
at the 750k us dollar limit with the lower tax rates and writing off prop taxes.
what a poor structured country, high real estate prices, no deductions. in the usa he would have everything, house, low taxes and be working on kids already. and us dollars. to boot.

#68 Happy Housing Crash Everyone! on 08.28.18 at 8:55 pm

40 paul on 08.28.18 at 6:58 pm
#1 Happy Housing Crash Everyone! on 08.28.18 at 4:58 pm

You useless SHYSTERS sicken me. You know you are useless POS. The Toronto SHYSTER board should be shut down by the government with the whole lot of SHYSTERS arrested .

BREAKING: TREB argues agents can’t publish real estate sold data unless behind a password restricted login.

Threatens to revoke membership and MLS access from agents that do not comply; legal action against non-compliant individuals and service providers.

#ToRe #cdnpoli https://t.co/QPIWWVFeZM

You SHYSTERS objective is to be the biggest Shysters you can be.
—————————————————————–
Well at least you were number one tonight. Just wondering how long were sitting with the site open and refreshing every 3 seconds. lol

________________________________

Maybe the gatekeeper likes me and bumped me to number one to spite the SHYSTERS?

#69 Mattl on 08.28.18 at 8:58 pm

Rents up 2-5 percent per. Vacancy rates running under 2 points. Have a pet? Piss off. Landlord wants to sell…np, just move your kids to a differernt school.

Not everybody who wants a sfh is a greater fool. Stability is a real thing for us chumps with families. Very easy for folks with no kids and everything that goes with that to recommend renting, and the instability that comes with it. Tired of no kid parents telling people to rent, its an ignorant position.

#70 lefty on 08.28.18 at 8:58 pm

Move back to Ottawa, join the rest of us brain-dead slobs.

#71 Reader on 08.28.18 at 9:01 pm

Garth, job loss is not only a risk for home owners… If you don’t have income how can you pay for rent? So I think your reasoning would be folks that are renting can save more. But that’s not true. Savings depends on the stage in your life and how discipline you are. I know a lot of friends that are home owner have more savings than rental friends cause they are more discipline. Renter tends to go on more trips and go out for drinks more often cause they have the financial freedom. And also if a 30 year old professional can’t find a job in time to cover the mortgage, something is seriously wrong… That would be as bad for a renter.

#72 NoName on 08.28.18 at 9:11 pm

Hello

Libs are feeling prity/very confident that trade deal will be made, both dudes need me thinks deal will be made, especialy it if they want to stay in office.
Whne deal is reached libs will move towards ban on handguns and tighter border.

I think its time to start thinking about going to shit vilage, where i came from, where streets also have noname…
https://www.youtube.com/watch?v=GzZWSrr5wFI

#73 Bottoms_Up on 08.28.18 at 9:24 pm

Way too much mortgage for a growing family.

$1600/mo daycare ( which turns into extracurriculars, clothes, beds, furniture, hockey or dance lessons and equipment or outfits etc.)

$2500/yr RESP

Likely can’t pursue private school or montessori.

Have fun paying yearly property taxes and house upkeep as well.

The people buying those houses are investors/speculators that have more money than you. Or families with better luck.

#74 AK on 08.28.18 at 9:25 pm

” Losing Quebec means losing government for the Libs. Thumbing Trump, however, is perilous for the entire economy. And the government. No easy choice here. ”
=====================================

Interesting times for Canada. No politician dares to discuss Supply Management and Energy East…

#75 LOL!!!!!!! on 08.28.18 at 9:30 pm

30 Jungle on 08.28.18 at 6:24 pm
In 2008-9, the average toronto detach was around 500k.

It’s now 1.3M

Within 2 to 3 years those 2008-9 prices will be back. Just hope those hold and we don’t go all the way back to 2003 prices.

……………….

NOT A CHANCE!!!!

expect higher rents tho. Rent the three floors at our property- amazed what people will pay for a basement apartment. Scary

#76 BoomerKid on 08.28.18 at 9:32 pm

I don’t really understand why so many people think that they need to buy a house when they are “thinking about having kids”. Even without going into how overpriced the markets are in Vancouver/Toronto right now, it’s an absolutely terrible time from a life perspective.

You are about to introduce a major stress to your relationship (new responsibilities, no sleep, no couple/adult time). There will also be lots of new expenses (diapers, strollers, formula, childcare) and possibly reduced income (mat leave). If you’re thinking about having kids, then now is a good time to reduce fixed costs and increase savings (build a nice little emergency fund). You can’t take away the sleepless nights, but you can minimize the financial stress (and the time spent mowing the lawn).

Why do people think it is a good idea to add $1-1.5 million dollar debt, increase your personal stress levels and increase the stress on your relationship? For what benefit? If you’re “thinking about having kids”, then you’re at least 2 years away from a child that is even remotely close to walking/talking. That house isn’t benefiting your kids until they can at least walk around. You can buy in 5+ years when the kid can actually run around and if/when he/she has a little brother/sister.

#77 Dolce Vita on 08.28.18 at 9:50 pm

Lysistrata.

THAT was good (NB. I held back from Oedipus as husband). Who knew, a Classical Garth. Nice.

Garth, same logical conclusion I came to on NAFTA. We got snookered by Trump and not a whole lot we could have done about it. Rock and a hard spot. Tail does not wag the angry dog. ON auto or PQ dairy is what Trump whittled it down to. Add to that, Mexico cut and ran on us.

Trudeau and Freeland looked like deer caught in headlights at the outset. Now we know they were.

Could not agree with you more on the outcome. Let’s hope Trump does not get petty and punish our PT Drama Teacher PM by doing the unthinkable. THAT would be despicable as well.

– – – – – – – – – – – – – – – – –

Oh yes, and to the Übermensch masses scurrying out from their ground level wall crevices into the light and commenting on my Climate Change rant yesterday that had actual facts and figures:

1. I am Italian and not English, we do not wear knickers.

2. Yes, it’s bloody hot in Italia, seems forever and also yes, beach has given way to sojourns in the Alps. Our night time lows = Canada’s so called recent heat wave hysteria. I have A/C, thus, no grey matter affected.

3. Why bother to read the Blog. TOEFL Reading Comprehension: “Very, very occasionally…”. Deconstructionists are irritating.

4. As a species, incl. the Polar Bears, trees, bees, snails, whales, we will get thru this warming period and if it warms more, maybe Canada will make high quality wines as the English did during the Medieval Warming Period, even in Richmond (as opposed to the current ink tasting, looking ferment made in Canada called “wine”, ya, that includes you too BC). Thank God for France & Italy, Spain on occasion, Germany if you like the Coke Zero version of white wine.

There were others but that’s the gen of it all.

Still, thanks for reading my stuff. Either way, you care enough. As I do about this wonderful Blog.

– – – – – – – – – – – – – – – – –

PS: Vendemmia starting in Italia. A wonderful time to be alive.

And yes, I help my cousin pick grapes from his vineyard.

And no, we do not stomp grapes anymore (well, we let the harkening for simpler times Agriturismo US & Cdn. tourists do that, GAP flip flops and all, sandals/white wool socks if they are German, knickers for the English).

Also wonderful because the bloody crush of tourists here beginning to go back home. Less luggage clitter clatter on our millennia old cobblestone streets. A good thing. But hey, we appreciate you coming, Italian GDP in awful need of a bump.

#78 toronto1 on 08.28.18 at 10:04 pm

Garth, think that you are mistaken- logically you are correct that T2 really does not have a choice

US put tariffs on Canada and T2 doubles down and throws out equal tariffs.- silly move

now we are negotiating from a position of weakness with absolute no leverage

T2 said today that we will defend supply management….. he is stuck on looking like a tough guy to protect his image.

i think that tariffs are just about a done deal right now- Canada wont sign by Friday- Trump will put on some tariffs and Canada will be back in 4-6 weeks begging for any deal

T2 has burnt up all the “good will” we had in record time- US offered to do a deal with Canada first, in fact offered it more then once- Trump was going to look the other way on the sunshine clause and even supply management at the G7- then T2 had to look tough and chew out big orange….

#79 ImGonnaBeSick on 08.28.18 at 10:05 pm

I agree with Mr. T when it comes to DCA’ing a windfall or a bonus, etc. Put it right to work. But doing monthly contributions is a form of DCA that everyone should practice.

Also, Garth doesn’t say “don’t buy”, he’s bought lots of houses/buildings… Just don’t gut yourself trying to buy a home that you obviously can’t afford… Buying a semi for 1.2m is the most idiotic thing anyone could do… If I’m spending 1.2m, it’s got acreage, outbuildings and a great big house on it…

#80 R on 08.28.18 at 10:16 pm

You should buy a house when you are 60 and have dementia

Spoken like a child. – Garth

#81 Gaga on 08.28.18 at 10:17 pm

Another government employee making 100k+ and only 30 y.o
U gotta love this country.

#82 Jason on 08.28.18 at 10:34 pm

There’s a common misperception that you average prices when they are cheaper. Paul Tudor Jones who just happens to be one of the greatest traders ever said that only losers average losers. Averaging on the way down is throwing good money after bad. Don’t hold onto losing investments. Cut your losses quickly and average on the way up after price consolidations. Just don’t get too top heavy.

And don’t trade. Useless advice for average people. – Garth

#83 Dolce Vita on 08.28.18 at 10:36 pm

Happy Housing Crash Everyone!

God, you’re funny.

I howl in laughter every time I read your rants.

Keep posting. You say what many of us dare not say yet, read and think vicariously thru you.

One thing for certain, you are not vanilla nor a shrinking wall flower on the subject of Realtors and their Boards.

Consistency and conviction – admirable traits. Being colorful, that more entertaining a read.

I hope a full blown housing crash will not tame your zeal with mission accomplished. That would be too bad.

#84 SoggyShorts on 08.28.18 at 10:45 pm

#55 MF on 08.28.18 at 7:43 pm
#28 Jungle on 08.28.18 at 6:15 pm

Is it common to lie about your income? Everyone on the internet makes 100k+, and 200k+ household.

-I like your sarcasm.

Think online dating, where the men add 2 inches to their height and the women take off 10 pounds from their weight.

MF

*************************
There might be some of this going on, but also a site like this attracts a certain demographic.

I sure as heck wasn’t looking at sites like this when I was busing tables…but I wish I had when I was a waiter.
Also 100K+ household is really not that much- I would expect an Ontario couple working as servers in a half decent restaurant to pull 50K each. I was making over 30K at an EastSide Mario’s, and since then min wage has doubled, and the “norm” for tips has gone up too.

Am I totally off in thinking that earning at least double minimum wage should be the norm after 20 years in the workforce? Serious question, I might be totally out of touch on this.

#85 DDT on 08.28.18 at 10:48 pm

“the S&P 500 is ahead 21%” not according to the charts and returns I’m seeing for the last 12 month?

As of tonight, one-year gain = 20.73%. – Garth

#86 yvrmc on 08.28.18 at 10:57 pm

#45 Reximus ….. OMG that was too funny !!! Love HHCE but that was perfect…

#87 joblo on 08.28.18 at 11:03 pm

“Thumbing Trump, however, is perilous for the entire economy. And the government. No easy choice here. The deplorables are storming the gate.”

Awesome stuff, will look good on Kanada.
Let the vultures eat!

#88 animal lover on 08.28.18 at 11:13 pm

“Lysistrata, dude. It’s out there.”

OMG man, you made me spew my Gruner Veltliner. LOL. Your blog is the best in so many ways.

#89 yvr_lurker on 08.28.18 at 11:30 pm

Wish we had Chretien dealing with Trump. Was a terrific PM, who has at the same time pragmatic, easy to under-estimate, wiley as a fox, good with the one-liners, and did not lead us down the bogus path to Iraq with Bush (like Tony Blair who had such a fall from grace).

https://www.cbc.ca/radio/thecurrent/the-current-for-may-31-2018-1.4684322/trump-and-the-trans-mountain-pipeline-what-would-jean-chr%C3%A9tien-do-1.4684328

Chretien and Martin faced up to the obscene debt level left by Mulroney and were straight with Canadians on what was needed to restore the state of finances…. Trudeau can’t shine their shoes….

#90 yvr_lurker on 08.28.18 at 11:31 pm

Wish we had Chretien dealing with Trump. Was a terrific PM, who was at the same time pragmatic, easy to under-estimate, wiley as a fox, good with the one-liners, and did not lead us down the bogus path to Iraq with Bush (like Tony Blair who had such a fall from grace).

https://www.cbc.ca/radio/thecurrent/the-current-for-may-31-2018-1.4684322/trump-and-the-trans-mountain-pipeline-what-would-jean-chr%C3%A9tien-do-1.4684328

Chretien and Martin faced up to the obscene debt level left by Mulroney and were straight with Canadians on what was needed to restore the state of finances…. Trudeau can’t shine their shoes….

#91 BCC on 08.28.18 at 11:33 pm

#22 All cash for 8 years strategy on 08.28.18 at 6:01 pm

Not sure if I am too late, but after being priced out of a house (or not accepting prices which exceed long-term survival) – during what was supposed to be a transition after the last sell and having to move around to find a good fit home – I have been educating myself on what to do with a pile of cash. It has really gone nowhere in 5 years, while houses and equities have pretty much made big gains making a couple hundred thousand look like nothing.

I actually don’t like cash. Holding onto it makes it seem like worthless depreciating paper. But not having learned more about financials until the past 5 years, I went with what I was told. Save your money in a bank for a rainy day. I have always paid cash for stuff. But saving your money in a bank doesn’t cut it as others leap frog you with wealth growth. Inflation stings. I do however, still think that my money going nowhere in a bank is a better move than buying an overpriced house that I would like to have, but can’t afford and probably never will, which would eventually financially ruin me anyways.

********************************

Cash is a dead horse. You can sit on it, but it won’t get you anywhere. I recently learned the same lesson.

#92 Paul on 08.28.18 at 11:40 pm

#58 BobC on 08.28.18 at 7:52 pm
Does Garths rule of 90 still apply to 30 year olds?
————————————————————————————————
It’s call a rule for a reason ! But what does a 30 year old know of rules, lol

#93 Hawk on 08.28.18 at 11:43 pm

T2 and those who support him, in this senseless feud with Trump will cost Canada dearly, unless by some miracle our elite come to their senses ASAP.

Trump is unlikely to fold. Since the time he came down that escalator announcing his candidacy for president he knows he has won every battle against the most enormous odds. I thought he’d at-least fold on China and even with them he held out. And his support from his base is more fierce and unwavering than T2’s support from the Quebecois.

I said it twice before and I’ll repeat, if we have sense, we’ll cut ourselves a large slice of humble pie, and avert severe economic pain.

#94 Cristian on 08.28.18 at 11:44 pm

“our loft, although great for us now, is definitely not a place that we can raise a baby.”

Seriously?!
We raised our first baby in a one-bedroom rental and she didn’t care a bit. When she grew up a little there are plenty of parks and playgrounds around.
The second baby came when we were renting a 2-bedroom, and she seemed as happy with it as her sister was with the one-bedroom.
Now the four of us live in a 3-bedroom rental, still plenty of parks around, excellent transit, lots of stores and markets close-by, the girls’ school is across the road, my investments pay the rent and most of our monthly expenses, why would I ever buy?
Dude, babies don’t care whether you own or rent!!! Grow up, you are an adult now, or supposed to be!

#95 Roial1 on 08.29.18 at 12:29 am

#17 Wait There on 08.28.18 at 5:52 pm
Methinks T2 will choose tumbleweeds and blame it on the USA. He’ll choose to protect the seats he has in Quebec and take a chance that the rest of Canada will blame the Donald. If he disses supply management two things are for sure. He loses Quebec and he takes down what his father put up. Not going to happen. Without Quebec he is toast.

Better Idea: Offer to do away with the milk board——–IF “Flake Blonde” removes the lumber tariff Bull shit.
Ya Right! he will do it Just to be fair. Ya and the moon is still made of cheez wizz. (or is that “take a wizz”)

#96 Ponzius Pilatus on 08.29.18 at 12:39 am

Garth,
From your last post:
Beyond 2020 may be a bigger question mark, but stocks don’t typically take such a long horizon view and they may consider lower odds of less market-friendly policies,” adds the bank.
————
That what scares me.
Stock markets are myopic.
Reactive rather than proactive.
Shareholders are looking for a quick buck and CEOs are happy to oblidge.
5 year focus should be the norm.
Otherwise, this will not end well.

#97 Smoking Man on 08.29.18 at 12:56 am

So there was an earth quake in SoCal.

Never felt it. Jack I’m thinking. Every night the earth shakes.

#98 Smoking Man on 08.29.18 at 1:45 am

An other 100 buck bet. When James wakes up at about noon. That night shift job.. The Harley rider who braged about punching out the great smoking man at the bay street meet up was a no show.

Will James defend Gravy Train. That the bet. Now that I’ve showed my hand will James use every power of self control and say nothing.

Or just quote 650 street again hoping that SM gets fired in the land of Billionaires and exotic cars.

Got a hundred bucks on this. Come on James say something you bitch.

I know what your going to do.

Dr Smoking Man
Phd Herdonomics.

#99 Stan Brooks on 08.29.18 at 3:48 am

#6 dakkie on 08.28.18 at 5:04 pm
Bad News For The CRASHING Canadian Economy! – Inflation & Interest Rates Rise

http://www.investmentwatchblog.com/bad-news-for-the-crashing-canadian-economy-inflation-interest-rates-rise/

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


Josh Sigurdson talks with author and economic analyst John Sneisen about the most recent news regarding the Canadian economy as inflation hit its highest level since 2011, interest rates skyrocket and Bank of Canada Governor Stephen Poloz gives excuses.

Poloz claims the recent inflation is just transitory and that he saw it coming.

Yes, it will be ‘transitory’ at 8-10 % yearly for the next 20 years.
Nominal wage increases, Official CPI/or whatever bastardized BoC measure will be 2 % (net wage increases at 1.2 % due to taxes) and pension indexed at 1.1 % while incompetents at the federal government will further raise taxes thus shrinking further the economy which they will compensate with more lending so higher prices and lower interest rates….

Circling down the toilet economy with no escape options whatsoever.

One wonders if lil Stive with the small balls is that stupid, incompetent or simply scared and lying.

In my mind to support this useless lifeless economy with the current policy ‘tools’ (lil Steve tools are so small you need magnifying glass to see it) interest rates should not only stop going up but as the delusional deputy of BoC Carolyn Wilkins said they should be deeply negative.

Picture that, inflation at 10 %, official CPI at 2, interest rates at – 3 %.

These people are incompetent, delusional and dangerous. Do you trust them with you money/labour?

I do not.

As Devid Rosenbesr said: BoC is just the small guy with its finger in the dyke, ‘hoping’ that the situation is ‘sustainable’. There is no limit to the amount of lies they are ready to tell you in order to protect their behinds.

Inflation is already horrendous, recognize it and act accordingly.

#100 Wrk.dover on 08.29.18 at 6:29 am

This couple can’t live in that loft with their spawn, yet poor people with out million dollar debts, can raise babies anywhere at all with a roof.

#101 MF on 08.29.18 at 7:05 am

#84 SoggyShorts on 08.28.18 at 10:45 pm

-It’s hard to say. On one hand you could assume this blog attracts a more financially astute, higher income individual. But on the other hand, it could also attract a demographic that is disillusioned and bitter with the whole system because they cannot purchase a home. We get an awful lot of comments from frustrated people on here.

I guess what my comment and others are getting at is that the average 30 year old these days definitely does not make 100k/year. Some do but most don’t. “Moving up” in a company is not as common with most jobs being temp/contract. From what I see, most people cobble together multiple part time jobs to survive. The likelihood of “moving up” in that scenario is diminished.

Those are my thoughts anyway.

BTW, I was a busser in a restaurant in the early 2000’s, and then I became a waiter for a bit too. Great job and fun too. I think restaurant work builds character!

MF

#102 David Hawke on 08.29.18 at 7:24 am

The long-term social benefits of standing up to the orange-haired bully (whose days are numbered) without absolute power to make good on threats, far outweigh any short-term consequences! Just sayin’!

#103 Honest Realtor on 08.29.18 at 7:28 am

TREB’s decision yesterday should produce some interesting news this week. Personally I have always been in favor of more disclosure of sales history info, as long as it does not infringe on a seller’s personal privacy.

#104 dharma bum on 08.29.18 at 7:42 am

“We’d like to buy a house soon, ideally in our neighbourhood (Leslieville/Beaches).”
——————————————————————–

Seriously, dude?

What’s the big deal about “owning” a house (i.e., “owing” a million bucks)?

You can still stay in that overrated sketchy neighbourhood and rent a decent place. Keep your money where it will be liquid and grow it at a rate greater than what a house will return (and carry no debt).

Best of both worlds.

Get it?

What are you? A schmuck?

When you read this blog out loud, next time try listening to yourself!

Mind boggling.

#105 bri on 08.29.18 at 7:51 am

Long time reader and lurker, however today I had to comment after reading up Lysistrata. Learn something new everyday and occasionally have to look up definition.

Thank you for all you do,

#106 the Jaguar on 08.29.18 at 8:13 am

Mad Max is picking up momentum. Barbara Kay and Christie Blatchford both with supportive columns in the Post today. Andrew Coyne always thinks he is ahead of the curve, but never is……….
Get ready conservatives…there’s a new kid in town turning heads and ears.

#107 In Garth We Trust on 08.29.18 at 8:16 am

The bearded mystic, all knowing, all wise, crystal clear sage that writes this pathetic blog is now creeping into the bedrooms of our nations as passionate couples have a menage a trois with our fearless leader, badass Harley riding financial oracle’s advice. You rock Garth!

#108 Nonno Nicola on 08.29.18 at 8:30 am

#66 Big Rider

“You haven’t convinced nonno of a price decline Garth.”

You are a good nipoto Bigga Ridero! You listen to da Nonna and you nevera good wronga!

#109 LP on 08.29.18 at 9:07 am

#88 animal lover on 08.28.18 at 11:13 pm
“Lysistrata, dude. It’s out there.”

OMG man, you made me spew my Gruner Veltliner. LOL. Your blog is the best in so many ways.
*********************************

Good for you; I had to look it up! Now I have to look up whatever it was you were drinking.

F71ON

#110 James on 08.29.18 at 9:54 am

#98 Smoking Man on 08.29.18 at 1:45 am
An other 100 buck bet. When James wakes up at about noon. That night shift job.. The Harley rider who braged about punching out the great smoking man at the bay street meet up was a no show.
Will James defend Gravy Train. That the bet. Now that I’ve showed my hand will James use every power of self control and say nothing.
Or just quote 650 street again hoping that SM gets fired in the land of Billionaires and exotic cars.
Got a hundred bucks on this. Come on James say something you bitch.
I know what your going to do.
Dr Smoking Man
Phd Herdonomics.
________________________________________
Nope, sorry my wife and I are taking my three children out shopping for clothes and supplies for school which starts here next week. Gravy Train can easily defend himself and if I recall old man it rained the night of the meet. I would have figured that you know Harley drivers don’t take their bikes out in the rain unless they get caught off-guard. But then again how would you know, you need balls to ride a Harley old man. Now go take your hundred dollars and get drunk under the bridge by the viaduct.

#111 NoName on 08.29.18 at 9:58 am

Yesterday i was driving home.and on radio they were talking abot sexdoll brothell oopening in Toronto. First thing what went through my mind who wil cleans those robot ladys, what level of biohazard ppe is required to stay safe. Makes silca dust like non event.

https://www.thestar.com/news/gta/2018/08/26/north-americas-first-known-sex-doll-brothel-opening-in-toronto.html

#112 Dissident on 08.29.18 at 10:31 am

Hi Garth, I know you’re saying that all this NAFTA noise with Mexico and Canada is not going to really affect the stock market, but then I go and read these articles on Marketwatch, cause I was thinking of dipping some money in right about now. Bad timing? They claim that it will be the rising interest rates that will make a bull market a bear, and that there will be a tipping point soon with these exuberant numbers…they claim it’s time to take profits, not invest more money…I can’t help but smell some risk. Is it really the interest rates that will kill the bull market that we are seeing now? Is it really too exuberant? I mean, that’s a bold claim. Your buddy just wrote an article about “short-lived” bear markets…coincidence? What say ye?

https://www.marketwatch.com/story/this-is-what-will-stop-the-record-stock-market-2018-08-28

https://www.marketwatch.com/story/the-worst-time-to-be-buying-the-sp-500-is-right-now-says-this-trader-2018-08-29

#113 Shortymac on 08.29.18 at 10:32 am

Seriously, wait a year or two dude and prices would have shrink and stablized a bit and you can have your pick.

I definitely wouldn’t be looking for a 1 million dollar house with a wee baby on the way, you’re going to have to look outside of your Leslieville hood to much cheaper GTA options.

The west end of the city still has accessible enclaves for well under a 1 million now. Mount Dennis, Bathurst Manor, downsview, wilson heights, richview, weston, rexdale, etc.

Cool your heels for a year or two and don’t max out, it’ll be worth it long-term with daycare costs and the like.

#114 R Vanzo on 08.29.18 at 10:41 am

I don’t think home prices are going down in Toronto. They may fall 20% from peak, but that is it. Those who did not buy in early 2010 missed the opportunity of a life time. I used to think that prices would fall and all, but that is looking increasingly less likely. There are 300k people arriving from overseas as landed immigrants and half of those end up in the GTA. At least 20% of those have decent life savings and value real estate in a way that canadians cannot understand (I’m from abroad myself so I relate to them). Real estate, many times, was the sole reserve those people had against government seizure and inflation. That’s why market rationale does not apply. The only way for house prices to go down is to severely reduce the number of immigrants being accepted, but no Canadian politician would do that. House prices may not go up, but they will not go down.

Immigration is less than 1% of the population annually and the median income is less than $35,000 for new arrivals. They are not responsible for $1.16 million average detached prices in the GTA. – Garth

#115 Wrk.dover on 08.29.18 at 11:10 am

#110 NoName on 08.29.18 at 9:58 am
Yesterday i was driving home.and on radio they were talking abot sexdoll brothell oopening in Toronto. First thing what went through my mind who wil cleans those robot ladys…

——————————–

A down on their luck realtor(TM), with some million dollar mortgages, would over qualify.

I heard a deflation pumper here named Mark is looking for work too, there might be some competition for this job (opportunity?) yet.

#116 James on 08.29.18 at 11:30 am

#97 Smoking Man on 08.29.18 at 12:56 am
So there was an earth quake in SoCal.
Never felt it. Jack I’m thinking. Every night the earth shakes.
____________________________________________
You have no idea what a real earthquake feels like. That one was a baby. Back in 2014 when I lived there we had magnitude-5.2 earthquake strike the Los Angeles area We had collapsed walls, rock slides, broken water mains and in our neighborhood cracks in our concrete building walls. You have to wait until the fire department inspects your buildings before you can re-occupy. The epicenter was in Orange County, about 2 kilometers east of La Habra. We had around 60 aftershocks over two days. Even the 5.2 we experienced was mild compared to the SoCal lifers. Don’t let the numbers fool you old man the factors are exponential with relation to intensity as well you need to understand velocity, duration and strata type in your area.

#117 Damifino on 08.29.18 at 11:42 am

#110 NoName

There’s one case where it really does seem better to own than to rent.

#118 Guy in Calgary on 08.29.18 at 11:52 am

A $960k mortgage making $225k combined. Assuming no other debts otherwise you likely wouldn’t qualify.

Just doesn’t seem worth the risk for a semi.

#119 desparately seeking serenity on 08.29.18 at 11:54 am

Math considerations…if half of 1% of Canadian population (target immigration), or 340,000 people immigrate to Toronto, that is significant.

That is about an increase of 6% per year in Toronto. That will affect prices and the demand for housing. This will change the city significantly.

Consistent with past decades. Makes for a great city. – Garth

#120 jess on 08.29.18 at 11:55 am

so cheaper rates based on skill not gender?

Women are better drivers than men, study concludes

Research finds men almost four times as likely to commit a motoring offence than women

Men were found to outnumber women five to one when it came to drink-driving offences, and two to one for driving without tax or insurance.

https://www.independent.co.uk/news/uk/home-news/driving-men-women-better-study-uk-a8512706.html
============
so this man’s reasoning

Texas man accused of targeting and shooting female drivers

On Facebook D’Agostino allegedly “rants and rambles on about female motorists and how incompetent they are and that their sole purpose is to give birth to male children,”
==========

Florida candidate who claims she was abducted by aliens doesn’t want that to define her
https://www.cbsnews.com/news/florida-candidate-who-claims-she-was-abducted-by-aliens-doesnt-want-that-to-define-her/
===========
and they yell TRUMP TRUMP TRUMP

66 hate groups identified in Florida, 5 in Orlando – Orlando Sentinel
http://www.orlandosentinel.com/features/gone…/os-66-hate-groups-splc-20180815-story.ht...

Aug 15, 2018 – Civil rights research group finds Florida to have the second highest amount of … Trolling the internet for news and not news … The census resurfaced and gained traction online on Tuesday after an article was published by .
==================
https://www.splcenter.org/hatewatch
Tennessee man charged with murder for burning black man to death, then using Bible to justify act

#121 gw on 08.29.18 at 12:08 pm

Hes a GOVT WORKER obviously. Garth the ANTI WHITE racist Eskimo HATES white people and promotes his genetics of CHINESE DUDES to fuck up Canada by LAUNDERING all their Criminal Money in CANADUHHHHHHHHHHHH

Balraj Dhalandar on 08.28.18 at 5:07 pm
Another “30 year old” making $225k per year. Isn’t this getting redundant?

How many 30 year olds make that kind of money? Oh unless you’re a Clerk at Toronto Hydro. Haha!

#122 Karl on 08.29.18 at 12:15 pm

#112 Shortymac on 08.29.18 at 10:32 am

The west end of the city still has accessible enclaves for well under a 1 million now. Mount Dennis, Bathurst Manor, downsview, wilson heights, richview, weston, rexdale, etc.

+++++

Those places are all dumps. Go to Mount Dennis for the affordability, stay for the drive by shootings. There is a big reason those places are cheaper.

Who knows 20 years from now, but I wouldn’t raise a family in any of those spots.

#123 Is this person for real? on 08.29.18 at 12:16 pm

#42 BS on 08.28.18 at 7:02 pm

Within 2 to 3 years those 2008-9 prices will be back. Just hope those hold and we don’t go all the way back to 2003 prices.

LOL – is this clown for real? Are you a betting man/woman BS? Care to make a healthy bet that prices for a City of Toronto detached will NOT be back to 2008-9 levels in 2-3 years? Serious question, and serious offer to make a bet.

#124 Mike in Toronto on 08.29.18 at 12:21 pm

#113 R Vanzo

“Immigration is less than 1% of the population annually and the median income is less than $35,000 for new arrivals. They are not responsible for $1.16 million average detached prices in the GTA. – Garth”

That’s a strange comment, as Vanzo raised, 300k new immigrants *is* less than 1%. It affects the GTA more because it is certainly not distributed evenly through the country. New arrival incomes don’t say anything about savings.

Otherwise, yeah, I find it hard to believe that high prices could be solved by curbing immigration… ‘locals’ do it enough.

#125 HowDeepThePain on 08.29.18 at 12:25 pm

Math considerations…if half of 1% of Canadian population (target immigration), or 340,000 people immigrate to Toronto, that is significant.
That is about an increase of 6% per year in Toronto. That will affect prices and the demand for housing. This will change the city significantly.
Consistent with past decades. Makes for a great city. – Garth

++++++

I think the immigration number is consistently around the 300K yearly FOR ALL OF CANADA.

It’s interesting that the number of people leaving Canada never seems to be publicized…or numbers on people leaving Toronto for less expensive Canadian homes.

#126 SoggyShorts on 08.29.18 at 12:30 pm

#101 MF on 08.29.18 at 7:05 am
#84 SoggyShorts on 08.28.18 at 10:45 pm

BTW, I was a busser in a restaurant in the early 2000’s, and then I became a waiter for a bit too. Great job and fun too. I think restaurant work builds character!

MF
****************************
You know how some Euro countries require everyone to either do 9 months military or 12 civil servant?
We should do that with retail/service.
Imagine if everyone knew what it was like to get yelled at by a stranger for something you have no control over.
Maybe in a couple generations people would stop being dicks.
Don’t get me wrong, I enjoyed being a waiter too, but there were moments…….

#127 Long-Time Lurker on 08.29.18 at 12:51 pm

Lysistrata. Is there a vaccine for that?

Aretha Franklin has a gold-plated coffin? I guess you really can take it with you!

#128 Capt. Serious on 08.29.18 at 1:22 pm


#115 James on 08.29.18 at 11:30 am
#97 Smoking Man on 08.29.18 at 12:56 am
So there was an earth quake in SoCal.
Never felt it. Jack I’m thinking. Every night the earth shakes.
____________________________________________
You have no idea what a real earthquake feels like. That one was a baby. Back in 2014 when I lived there we had magnitude-5.2 earthquake strike the Los Angeles area We had collapsed walls, rock slides, broken water mains and in our neighborhood cracks in our concrete building walls. You have to wait until the fire department inspects your buildings before you can re-occupy. The epicenter was in Orange County, about 2 kilometers east of La Habra. We had around 60 aftershocks over two days. Even the 5.2 we experienced was mild compared to the SoCal lifers. Don’t let the numbers fool you old man the factors are exponential with relation to intensity as well you need to understand velocity, duration and strata type in your area.

…. and we’re officially a plate tectonics blog.

#129 Capt. Serious on 08.29.18 at 1:26 pm

Re: DCA, value averaging is better if one can’t imagine investing all at once. All at once is best, usually. Value averaging has you aim for an increasing portfolio value over time, so you’ll add less if markets rise in an interval, more if they decline, a fixed amount if they tread water.
There is a book, aptly named “Value Averaging”, for the interested reader.

#130 Linda on 08.29.18 at 2:11 pm

‘Totalchaos’ makes a good point about use of space. Lots of people buy more than what they will ever need. The house I live in is considered ‘tiny’ as it is under 1,500 square feet. Frankly it is more than enough space for the two of us & should we ever desire or find a need for more space the basement could be developed.

There are many benefits to living in a smaller house, including the ease of keeping it clean. Don’t buy ego, buy smart.

#131 Shortymac on 08.29.18 at 2:25 pm

#121 Karl on 08.29.18 at 12:15 pm
#112 Shortymac on 08.29.18 at 10:32 am

The west end of the city still has accessible enclaves for well under a 1 million now. Mount Dennis, Bathurst Manor, downsview, wilson heights, richview, weston, rexdale, etc.

+++++

Those places are all dumps. Go to Mount Dennis for the affordability, stay for the drive by shootings. There is a big reason those places are cheaper.

Who knows 20 years from now, but I wouldn’t raise a family in any of those spots.

——————————————————–

It’s no where near as bad as you’re making it out to be, I grew up in the States and worked in Trenton, NJ. YOU want to see some REAL poverty and danger, go there. I wouldn’t even walk down the street after 5pm there.

I’ve always felt safe in Toronto, no matter where I was. There’s a few crappy apartment buildings but you’re probably fine in most areas.

#132 LP on 08.29.18 at 3:11 pm

#125 SoggyShorts on 08.29.18 at 12:30 pm
#101 MF on 08.29.18 at 7:05 am
#84 SoggyShorts on 08.28.18 at 10:45 pm

BTW, I was a busser in a restaurant in the early 2000’s, and then I became a waiter for a bit too. Great job and fun too. I think restaurant work builds character!

MF
****************************
You know how some Euro countries require everyone to either do 9 months military or 12 civil servant?
We should do that with retail/service.
Imagine if everyone knew what it was like to get yelled at by a stranger for something you have no control over.
Maybe in a couple generations people would stop being dicks.
Don’t get me wrong, I enjoyed being a waiter too, but there were moments…….
****************************************

In my late teens, back in the dark ages, I worked as a cashier in a large grocery store. It was never the rude, horrible customer who reduced me to near-tears; it was the very next customer who sympathised.

F71ON

#133 jess on 08.29.18 at 3:41 pm

How Spanish flu helped create Sweden’s modern welfare state

https://www.theguardian.com/cities/2018/aug/29/how-spanish-influenza-helped-create-sweden-modern-welfare-state-ostersund

#134 Trevor on 08.29.18 at 4:00 pm

and garth maps out the key to generational wealth again. Imagine if families actually passed wealth down like this (4 mill with 200k life income), life could be so easy for future generations, especially if each generation continued to add to the family nest egg. this is my life goal thanks to Garth!

#135 Michael (in qc) on 08.29.18 at 4:16 pm

Supply management is a dumb commie idea.

As much as I’d love to hate it, as a Quebecer who has been in the AG industry, I know it’s also what allows small family farms (ex: 20 heads) to not only survive but thrive.
A lot of Quebec is bumblefuck nowhere, with no jobs.

Take a drive down to the Gaspésie peninsula and you will see countless quaint dairy farms with barns and machinery older than your grandpa. What would happen to them, I don’t know.

I don’t want anything to do with US produced dairy full of puss, hormones and antibiotics.

I’m quite torn on this subject.

#136 Lee on 08.29.18 at 4:24 pm

#113 R. Vanzo / Garth,

By driving up the demand for rentals they indirectly drive up the price of all housing. Some apartment REITs doing quite well as a result.

#137 KLNR on 08.29.18 at 5:17 pm

@#130 Shortymac on 08.29.18 at 2:25 pm
#121 Karl on 08.29.18 at 12:15 pm
#112 Shortymac on 08.29.18 at 10:32 am

The west end of the city still has accessible enclaves for well under a 1 million now. Mount Dennis, Bathurst Manor, downsview, wilson heights, richview, weston, rexdale, etc.

+++++

Those places are all dumps. Go to Mount Dennis for the affordability, stay for the drive by shootings. There is a big reason those places are cheaper.

Who knows 20 years from now, but I wouldn’t raise a family in any of those spots.

——————————————————–

It’s no where near as bad as you’re making it out to be, I grew up in the States and worked in Trenton, NJ. YOU want to see some REAL poverty and danger, go there. I wouldn’t even walk down the street after 5pm there.

I’ve always felt safe in Toronto, no matter where I was. There’s a few crappy apartment buildings but you’re probably fine in most areas.
___________________________

Just stay far away from toronto public housing and you’re good

#138 KLNR on 08.29.18 at 5:21 pm

@#129 Linda on 08.29.18 at 2:11 pm
‘Totalchaos’ makes a good point about use of space. Lots of people buy more than what they will ever need. The house I live in is considered ‘tiny’ as it is under 1,500 square feet. Frankly it is more than enough space for the two of us & should we ever desire or find a need for more space the basement could be developed.

There are many benefits to living in a smaller house, including the ease of keeping it clean. Don’t buy ego, buy smart.
__________________________________

we’re a family of four + mutt in 1580sqft.
Exact right amount of space for us and we use it all -no lonely dusty rooms. Not to mention the property tax is a 3rd of what we used to pay on 3000sqft. same hood too.

#139 Russ on 08.29.18 at 5:50 pm

#119 jess on 08.29.18 at 11:55 am
so cheaper rates based on skill not gender?

Women are better drivers than men, study concludes

Research finds men almost four times as likely to commit a motoring offence than women

Men were found to outnumber women five to one when it came to drink-driving offences, and two to one for driving without tax or insurance.

https://www.independent.co.uk/news/uk/home-news/driving-men-women-better-study-uk-a8512706.html
==============

I see this as women are better than men at driving on the left hand side of the road.

#140 FLHTK on 08.31.18 at 7:28 am

Wow 4 million, geez! I’d be living in the loft forever! Your right this guys on track, and he wants to blow it because he is getting FOMO, I love this FOMO because I dont have it but seems like everyone else does, so please let the FOMO take over causing my house to rise in value again…..this time we wont sit on the fenceand we will sell