Led astray

As you know, 2018 sucked. But not just for financial markets. Look what’s happening to everybody’s fav investment – their house.

Unlike liquid assets, whose values are published daily and are unassailable, real estate remains a black hole of misrepresentation. No wonder so many people are led so astray. And here’s a little example. On Friday North America’s largest real estate board (in the GTA, natch) published the latest stats. The key message:

Home prices were up very slightly in the City of Toronto and down in the surrounding GTA regions. This dichotomy reflects the fact that the condominium apartment segment, which accounted for a large proportion of sales in the City of Toronto, performed better from a pricing perspective than the detached market segment. The average price for condominium apartment sales across the TREB market area was up by 7.8 per cent year-over-year.

“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint,” said Garry Bhaura.

Well, that sounds benign, doesn’t it? Condos up. Better market conditions. Sales and prices ‘improving.’ But this doesn’t reflect reality, as thousands of commission-less realtors will attest. The market has turned into a wasteland, and anyone who suffered FOMO, buying 18, 12 or even 6 months ago, paid too much.

Average 416 detached plops $280K in 7 months

Look at the gold standard – a detached house in 416. Last month it was changing hands for an average of $1.145 million. The last time this number was seen was about two years ago, which means somebody buying at the start of 2016 and selling today – paying the standard commission – has lost money. In fact, this benchmark Toronto property has shed $280,202 – or 19.6% of its value – since just last May. Ouch. Worse, this home is down by $432,650 (27.4%) from the spring of 2017, when everybody was lubed up and desperate to buy.

By every measure, this is a turkey. Someone who lost $432,000 (plus huge transactional costs) on an investment portfolio of $1.5 million would be looking for their advisor’s jugular. If they levered a mess of that money, the pain would be even more intense as wealth simply evaporated.

Why isn’t the industry being forthright with this information? Duh. Because folks like Mr. Bhaura don’t want you to know. Unlike stocks, bonds, preferreds or REITs, such data is hidden, subjectively diddled in the basement by paid real estate board elfs, then released in misleading dollops to a bankrupt media. No wonder people think investing in property is a no-brainer, low-risk proposition while ‘playing the markets’ means constantly flirting with loss. The fact is that even with 2018’s stock plop and the real estate boom of the past couple of years, financial investors have come out ahead. And no realtor fees, land transfer tax, property tax, insurance, Audis in the driveway, open houses or people pawing through your closets.

But, this isn’t just about Toronto. Similar tales are coming out of many markets across the country. Look at Victoria, for example. Sales last month toppled 19% year/year and were 25% behind those of two years ago. Condo deals crashed while 26% fewer detacheds changed hands. For the year as a whole, down 20%. Prices are flat with a top-end crumble taking place. “The story arc in real estate this year,” says the head realtor, “has been the impact of government influence…” No guff.

And poor, wet, delusional Vancouver. Compared to the GTA’s 16% sales plunk, YVR’s in freefall. Last month’s action was a stunning 47% below that of December, 2017 and a 33% drop from the previous month. For the entire year, it’s the worst performance since 2000 – when you thought Donald Trump was funny. Detached houses shed 8% of their value. The culprits: “high home prices, new mortgage requirements and taxes all contributed to the market conditions.”

Then there’s Calgary, continuing a decade-long slump with a 14% sales reduction in 2018. December saw a 21% fall from year-ago levels, while anxious sellers pushed available inventory up 30%. Prices down again, of course.

Edmonton – sales and prices down in 2018. Ditto in Saskatoon. London saw fewer sales but higher prices. Sales off 28% in Oakville. Fewer transactions in Lethbridge, while they’re still counting in Montreal.

Overall, this is no healthy housing market. We all know why. The stress test. Higher mortgages. Moronic new taxes. And an industry which seems to do everything possible to lose public trust. Families are bombarded with conflicting ‘facts’ about the markets they live in. Just days before hearing of a historic sales collapse in Vancouver, for example, the BC Assessment office told everyone how much more their homes were worth. Huh? Who’s zoomin’ who?

So the advice stands. Buy a house if you need one, and can afford it. But don’t try to justify it as an investment. That ship sailed.

107 comments ↓

#1 Retired in Kelowna on 01.04.19 at 4:58 pm

Hi Garth,
I am in lock step with your financial philosophies and views on Real Estate, Balanced Portfolio etc. and have been for decades.
Yet yesterday we received the BC Assessment for 2019 for our 40 Year old home in Kelowna on a half acre view lot. Increase of $46,000 over last year! Hard to make sense of all this.
Any comments?

#2 Brett in Calgary on 01.04.19 at 5:08 pm

They need your tax money.

=================================
#1 Retired in Kelowna

“Yet yesterday we received the BC Assessment for 2019 for our 40 Year old home in Kelowna on a half acre view lot. Increase of $46,000 over last year! Hard to make sense of all this.
Any comments”

#3 yycnotretired on 01.04.19 at 5:09 pm

Is there any way to change the severe lack of oversight on the RE/mortgage/housing sector? For crying out loud our 100$ a month TV and Phone packages have the CRTC to watch over us, and yet housing/builders/marketers can manipulate stats and spin stories and “guaranteed 10+% profits” with no recourse.

#4 Terrie Rolph on 01.04.19 at 5:09 pm

My latest property assessment is higher, as is widely reported. However, I wonder about two things:
1. Given what we know about how suspect the real estate numbers are and that BC Assessments rely on at least some of that suspect data, can we be confident that the assessment is a true reflection of the average sales?
2. Might official assessments lag current ‘reality’ of property sales by quite a bit?

#5 Finance? No. on 01.04.19 at 5:09 pm

https://www.bloomberg.com/news/articles/2019-01-04/toronto-vancouver-housing-sales-plummet-to-decade-lows-in-2018?srnd=premium-canada

An article by Bloomberg suggesting the reality.

#6 not 1st on 01.04.19 at 5:13 pm

Garth, while Calgary RE has slid, the average home there is just about the same price as the value shed in Toronto. Much more affordable than any place in Canada and much closer to a bottom than the rest of the country.

If we can neuter Trudeau and his gang of misfits then that place is poised to rock.

#7 not 1st on 01.04.19 at 5:23 pm

DELETED

#8 Sask to AB on 01.04.19 at 5:23 pm

Sage advice Garth. Thank you again.

#9 acdel on 01.04.19 at 5:25 pm

Although it has been plus ten or higher for the past three or four days I can tell you that the real-estate market just sucks in Calgary. Loads of snow in the mountains and blue chinook skies in this city.

Great time to buy if you have a job and cash..

#10 gfd on 01.04.19 at 5:26 pm

“. . . . . don’t try to justify it as an investment. That ship sailed.” As Austin Powers would say “that ship has left the station”

#11 Reximus on 01.04.19 at 5:30 pm

which means somebody buying at the start of 2016 and selling today – paying the standard commission – has lost money.

====

who, other than a speculator, would do that?

Life changes. – Garth

#12 Sold Out on 01.04.19 at 5:37 pm

I still wake up in a cold sweat whenever I have that recurring nightmare, the one where I didn’t sell my YVR sfh in 2017. I can’t claim to be prescient enough to have bought my home knowing it would nearly triple in value, but even a dolt like me knew when it was time to sell. Life-changing amounts of money changed hands in YVR in the last few years, but if you owned long-term and didn’t sell prior to 2017 it could be a long wait, and a slow bleed, before you’ll see those sums being thrown around again.

#13 marcus on 01.04.19 at 5:44 pm

Thirteen Canadian citizens have now been detained by the Chinese govt. One of them will be executed. this is in response to Canada arresting the Huawei officer. Where is the travel warning to Canadians (Especially non-Chinese) who are traveling to China? There is a mass exodous of foreigners leaving China from other countries right now. Wake up Canada!

#14 Brian 1 on 01.04.19 at 5:51 pm

Regarding Trump’s wall: The only immoral wall that I know of was the Berlin Wall. Perhaps Nancy Pelosi will tear down the wall at San Diego, which Democrats voted for, or the walls at her home. Walls work at the Vatican, in Israel and Korea. I personally would like a Great China Wall which worked for centuries. I also think Trump doesn’t care if he is reelected or not. Go Trump.

#15 Kurt on 01.04.19 at 5:52 pm

Garth: ” We all know why. The stress test. ” No. Just No. As you have been telling us for years, many of these markets are ridiculously over-valued. Any over-valued market is by definition not healthy. Government action may have revealed the underlying weakness, but it is not at fault. Our democratic institutions are under no obligations to prop up pyramid schemes, which the very title of this blog “Greater Fool” acknowledges is the heart of our real estate woes. It’s fun to blame the government, and gets your readers riled up, but you and I know that it is ultimately the citizens of Toronto, Vancouver and so-on who are ultimately to blame for this mess. Hell, you’ve said so your self, many times over!

#16 Chaddywack on 01.04.19 at 5:53 pm

But even with those drops Vancouver is still unaffordable for even people with high incomes. If only the top 1% can still afford a detached house who cares about a decrease.

#17 crowdedelevatorfartz on 01.04.19 at 5:57 pm

“an industry which seems to do everything possible to lose public trust….”

+++++

“Trust” has nothing to do with obscenely rapacious commission based sales fees…..

#18 Mattl on 01.04.19 at 6:02 pm

Not sure I understand the short term focus this blog takes on RE. The large majority of people that buy a home stay in it for 10 plus years. So ya it sucks to buy high, and if you bought at absolute peak you are down on paper.

Same goes for other asset classes. If you entered a balanced port at peak you are down quite a bit. And 1 year returns are down, 3 years barely beating inflation. Cherry picking market entry is a dishonest way to present returns. Most homeowners stay in their homes and most have made a bucket load (on paper) in RE in Van and the GTA. Who cares if some flipper that bought in June 2017 takes a loss. That guy is much as an idiot as the people moving to GICs now.

And there is a significant cost to having your money managed, you can’t pretend that that 1% per per year is not a factor. 4.5% one time is less then 1 percent per over ten.

You always tell is its not a competition then turn it into a competition. Well if it is, RE, for me anyways, is kicking the crap out of my balanced returns. And for most of us that got in the last decade, that will continue to hold true, no matter how many amatuer flippers or money launderers take baths on short term re turns.

#19 S.Bby on 01.04.19 at 6:07 pm

Every other market except real estate is regulated to the hilt by government entities of some type or other so why not real estate? I can’t see why the one of the most important industries in the country basically left to scammers and charlatans to self-manage. Government types: I see an opportunity there for you.

#20 Dongareff on 01.04.19 at 6:16 pm

The specuvestors have moved to Montreal. This is now the hot area for money.

#21 Dolce Vita on 01.04.19 at 6:21 pm

British Columbia’s Assessment Act requires that every property owner receive a property assessment notice reflecting market values effective July 1 of the preceding year.

-BC Assessment

The assessed values are 6 months old.

What do you do with them?

Tara.

Gone with the Wind (and rain).

#22 Lefty on 01.04.19 at 6:22 pm

Ottawa’s doin’ ok… Even our train might work.

#23 Reximus on 01.04.19 at 6:33 pm

who, other than a speculator, would do that?

Life changes. – Garth

—–

yes that is possible, and would suck. But I hope that would not be why that family/household bought, for quick money…

real estate does not belong on a list of investments that are liquid, not just because it’s not liquid, because it’s 98% non speculative participants. Its shelter.

Bonds/stocks are 100% owned by speculators, and of course, win or lose, you cant live in a etf.

A third of Canadians move every five years, and the majority of net worth is in houses. So, no, real estate is not just shelter. Dangerously, but consistently, people have adopted a one-asset financial strategy. Your argument has no legs. As for retirement portfolios, they are not owned by ‘100% by speculators’. I’m sure you have an RRSP. – Garth

#24 TRUMP 2020 on 01.04.19 at 6:34 pm

Because I can if I want to!!

Because I don’t have to if I don’t want to!!

But I’ll do whatever it takes.

#25 islander on 01.04.19 at 6:37 pm

https://www.macleans.ca/economy/realestateeconomy/this-is-how-canadas-housing-correction-begins/

Huge red flag – iceberg ahead! -sub prime?

“In 2016, mortgages with a loan-to-income ratio of more than 450 per cent—meaning mortgages that are four and a half times greater than annual income—accounted for 21 per cent of all new mortgages. That share has now fallen to 6.2 per cent. The problem is that unregulated lenders have picked up the slack. The bank’s report found that roughly nine per cent of new mortgages in Toronto are now being signed with private lenders. Meanwhile, 20 per cent of refinancings in Toronto in the second quarter were with private lenders, a 67 per cent jump in just two years”

#26 Dolce Vita on 01.04.19 at 6:38 pm

I love chaos.

RE market now a lot like the phases of a big project. RE Market at #2 now. #3 typically fast on its heels and #5, my personal favorite:

1. Enthusiasm,
2. Disillusionment,
3. Panic and hysteria,
4. Hunt for the guilty,
5. Punishment of the innocent, and
6. Reward for the uninvolved.

HINT to Garth:

…they’ll punish you.

I’ll wear my nice underwear. – Garth

#27 Dolce Vita on 01.04.19 at 6:51 pm

I’ll wear my nice underwear. – Garth

THAT was too funny.

Advice:

Wear LDS “magic” underwear:

…a source of protection from the evils of the world.

——————————–

Ya, I know. Buonanotte.

#28 Alberta Ed on 01.04.19 at 7:12 pm

There was an excellent and frank discussion by two veteran realtors on today’s CBC Radio noon show, rather surprising since CBC habitually just regurgitates whatever CREB feeds them. The callers, most trying to unload, revealed not a pretty picture

#29 young & foolish on 01.04.19 at 7:12 pm

Fair enough …. but how about those equity markets? Since 2008 the US economy grew bellow 2.5% annually while the Dow increased buy over 10% per year on average. And since buying stocks is really buying future streams of income from consumers (debt at all time highs) I wonder what we have to look forward to.

So much misconception here. Stocks of companies rise primarily on profits, which have been robust. Current estimate of growth lying ahead is 8.3%. – Garth

#30 For those about to flop... on 01.04.19 at 7:18 pm

Pink Snow falling in Vancouver.

These guys are taking their flip for another spin.

BC assessment just hit these guys where the sun don’t shine.

Actually the sun doesn’t shine on the whole city, nevermind.

The details…

4724 w 6th ave,Vancouver.

Paid 4.4 December 2017

Originally asking 4.98

Now asking 3.99

2017 assessment 4.4

2018 assessment 3.62

So their assessment just got rolled back the best part of 800k.

Back on the market today after downing a packet of Pepto Bismol.

Nausea, Heartburn, Indigestion, Upset stomach, Diarrhea…

M44BC

https://www.zolo.ca/vancouver-real-estate/4724-west-6th-avenue

#31 Blacksheep on 01.04.19 at 7:23 pm

SunShowers # 172,

#167 Blacksheep

“You gonna pay my moving costs? And the increased costs of living to whatever place we move to that is so rife with opportunity?”
—————————-
No risk, no reward.

With a winning attitude like yours, I’m downright shocked employers aren’t beating down your door with
lucrative job offers.

#32 Dwilly on 01.04.19 at 7:32 pm

Hey Garth, would you consider writing a post about Gold, and specifically, under what conditions it might be worth holding a small percentage of your net worth?

I’m not a whacko or doomer or anything close. Besides my house, all of my net worth in currently in a B&D portfolio as you recommend. But it does seem to me that at some point, for higher net worth individuals or families, it may be worth holding a small percentage, like 5% or something, much in the way higher net worth folks tend to diversify into other things. One of your compatriots wrote about collectibles a while back. Similar idea, no? Ie, more like an insurance policy against black swan type stuff than as an “investment”?

So is there ever a situation when you might suggest folks with a larger portfolio (say a couple mil) put some smallish bets in other places? Like gold? Or collectibles, etc?

#33 Anonymous on 01.04.19 at 7:34 pm

Any word about when we will have open, historical RE information in Ontario?

The TREB vs. Competition Bureau case was done months ago and still no new RE upstarts Zillow style.

How come?

#34 young & foolish on 01.04.19 at 7:37 pm

“So much misconception here. Stocks of companies rise primarily on profits, which have been robust. Current estimate of growth lying ahead is 8.3%. – Garth”

Forgive my ignorance, but I assumed profits come after sales.

#35 PGer on 01.04.19 at 7:43 pm

You certainly get the feeling that this is just the beginning of a major housing correction for the major centers (centres?) like TO and YVR. (I remember the painful TO housing crash of the ’90s.) Thankfully, I don’t live in one and can just hunker down and watch the entertainment.

#36 panzard f on 01.04.19 at 7:44 pm

The one anomaly about purchasing real estate is the the “new” economy requires workers to be mobile and ready to move to chase the $. Being tied to a piece of land hurts one’s probability of gainful employment and adapability.

#37 Crawl Clausewitz on 01.04.19 at 7:47 pm

Garth,

I see a major black swan event war in 2019-2020 with Trump, the unelected defender of the free world, battling China for hegemonic control of the the shipping lanes in the South China sea….kind of a re-hash of the Vietnam war, with broader geopolitical participation.

These will be the modern equivalent of “living in interesting times”

#38 Ciokon on 01.04.19 at 7:50 pm

Completely agree, Garth. Housing should be primarily looked at as a basic need to be fulfilled and not as an investment vehicle, at least for more average folks.

#39 TDS on 01.04.19 at 8:04 pm

Dow up 746 points again today. Darn that Trump!

Darn that Powell! – Garth

#40 Fish on 01.04.19 at 8:08 pm

Economic outlook 2019: LNG Canada offsets real estate slowdown

https://biv.com/article/2019/01/lng-canada-offsets-vancouver-real-estate-slowdown

#41 tccontrarian on 01.04.19 at 8:22 pm

“Just days before hearing of a historic sales collapse in Vancouver, for example, the BC Assessment office told everyone how much more their homes were worth.”GT

Fake news?

What anything is worth, is determined by what someone is willing to pay for it. It’s called, “the market”.
Whatever the ‘official assessment’ (based on last year’s reality), today’s reality may be quite different.

Only true way to find out what a property is really worth is to list it. In my neighbourhood, there are at least 3 properties that have been on the market for over 6 months. I’m tempted to make an offer at 50% ask – all cash. Probably will later in the year, if still listed. Who knows?

TCC

#42 Where's The Money Greed-otley? on 01.04.19 at 8:25 pm

Re: #9 acdel on 01.04.19 at 5:25 pm
Although it has been plus ten or higher for the past three or four days I can tell you that the real-estate market just sucks in Calgary. Loads of snow in the mountains and blue chinook skies in this city.

Great time to buy if you have a job and cash..
++++++++++++++++++++++++++++
Buy just in time for Calgary to wallop you with increased residential property taxes that closed businesses no longer pay in that wasteland that is downtown. There has been mention of that for the last 6 months gauging taxpayer backlash.
Residential property taxes are going to explode, they have to get the money for their “public art” and pensions from someone and that is the sucker home owner.

#43 SoggyShorts on 01.04.19 at 8:32 pm

#121 SunShowers on 01.04.19 at 9:54 My wife and I work 2 jobs each, putting in 60-70 hours a week and we’re just getting by, despite my STEM degrees and her trade ticket. If our boomer parents were putting in those hours, their household income would be pushing 6 figures EASILY (before even adjusting for inflation). Not so for us.
My wife and I also live in a tiny house on the freezing prairie, both our cars are used with well over 100k on the odometer (mine’s already paid off, that’s how long I’ve had it), we don’t go away for vacations, we don’t drink, do drugs, gamble, smoke, or have any other expensive habits, and we don’t eat avocado god-dang toast.
*******************************
So what [b]are[/b] you doing wrong?

Multiple STEM degrees and a trade?
If you are going to work 60-70h anyways, just move to Alberta for $15 min wage, and poof: you and the squeeze are making 6 figures.
If you can’t get minimum wage jobs or better with your qualifications, you’re lying.

#44 Vampire studies on 01.04.19 at 8:34 pm

32 Dwilly – here it is

https://www.greaterfool.ca/2018/04/21/mint/

Mrs V likes diamonds. She’s pretty good at grading them. Picked up some “10 baggers” (appraisal = 10X purchase price) on some smaller pieces. More difficult on larger stones as your competing against more knowledgeable bidders.

best advice is do what you enjoy most, and are good at, as you will put the effort in to the research. And of course keep the total invested in check.

#45 STM on 01.04.19 at 8:35 pm

“That ship sailed.”

About what time did it sail? ;)

#46 tccontrarian on 01.04.19 at 8:41 pm

#32 Dwilly on 01.04.19 at 7:32 pm

Hey Garth, would you consider writing a post about Gold, and specifically, under what conditions it might be worth holding a small percentage of your net worth?
****

He already did!

“Look at the gold standard – a detached house in 416. Last month it was changing hands for an average of $1.145 million. The last time this number was seen was about two years ago, which means somebody buying at the start of 2016 and selling today – paying the standard commission – has lost money.” Garth
—–

First time I’ve seen Garth writing about a ‘gold-standard’ – or maybe he’s just softening up!

In any case, speaking of gold…
I read somewhere that gold outperformed the SP500 in 2018. Like I like to say, “there’s a time to buy/hold/sell ANY asset class.” In other words, “don’t fall in love with an asset” – only your significant other, or dog…(the necessary suck-up so I don’t get deleted again) :)

TCC

#47 Drill Baby Drill on 01.04.19 at 8:53 pm

Selfie Boy must be looking over his shoulder at those in his cabinet that might actually want his job. I can easily see that Trudeau may not be on the next Liberal ticket.

#48 45north on 01.04.19 at 9:01 pm

talking about GTA real estate: Look at the gold standard – a detached house in 416. Last month it was changing hands for an average of $1.145 million. The last time this number was seen was about two years ago, which means somebody buying at the start of 2016 and selling today – paying the standard commission – has lost money. In fact, this benchmark Toronto property has shed $280,202 – or 19.6% of its value – since just last May. Ouch. Worse, this home is down by $432,650 (27.4%) from the spring of 2017, when everybody was lubed up and desperate to buy.

okay this is serious. No matter what the real estate board says, real estate has crashed. So far it’s just sales. Or mostly sales. Prices to follow.

The stress test was put in place to protect the banks. It’s a chicken and egg thing – the stress test causes sales to fall which cause prices to fall which cause mortgage delinquencies which cause the stress test. My theory is there cannot be widespread bank repossessions – the social fabric will not support it. So the stress test stays.

#49 45north on 01.04.19 at 9:03 pm

And poor, wet, delusional Vancouver. Compared to the GTA’s 16% sales plunk, YVR’s in free fall. Last month’s action was a stunning 47% below that of December, 2017 and a 33% drop from the previous month. For the entire year, it’s the worst performance since 2000 – when you thought Donald Trump was funny. Detached houses shed 8% of their value. The culprits: “high home prices, new mortgage requirements and taxes all contributed to the market conditions.”

Just days before hearing of a historic sales collapse in Vancouver, for example, the BC Assessment office told everyone how much more their homes were worth. Huh? Who’s zoomin’ who?

BC Assessment is bound to mail the assessment notices to the property owners by December 31:

https://info.bcassessment.ca/Services-products/Understanding-the-assessment-process/Key-dates

But as you say, Vancouver has seen a stunning drop in sales. Which will be reflected in prices. Which will be stunning.

#50 gfd on 01.04.19 at 9:08 pm

It’s not just Vancouver: Property market slump goes global, jolting cities from Hong Kong to Sydney

By Bloomberg News

11 hours ago ·  4 minute read

#51 ImGonnaBeSick on 01.04.19 at 9:30 pm

#18 Mattel – if you want to attack the other blog dogs on here, go right ahead, but it’s pretty ignorant when anonymous internet dude attacks Garth’s opinion and his business. You seem to have no problem coming here for his free advice – which he gives daily. Remember, that 1% includes more than balancing your portfolio, ie. tax planning, account optimizations. All of which GT touches on in his blog. Like having a good accountant, Mr. T’s fee will be well covered through services provided.

Let’s be a bit more gracious to our host in 2019, and if you have issue, how about using some common decency to express it.

#52 Don Carlos Pinatta on 01.04.19 at 9:32 pm

Any moron who believes Canada hasn’t tumbled into recession already needs therapy. I called it six months ago when the ballyhooed announcement of historic hiring didn’t reflect governments significant religious community hiring in freshly imported ethnic ghettos ( after Hussen justified the splurge on ghetto largesse by pointing out that these specific newcomers were “otherwise unemployable”, his words not mine.)and the absence of those hundreds of thousands whose EI had run out and weren’t being counted.

Now we see that the budget won’t balance itself without hundreds of billions in new debt and runaway spending on vote buying.

https://www.bnnbloomberg.ca/less-than-meets-the-eye-canada-adds-9-300-jobs-amid-weak-wages-1.1193524

#53 Ace Goodheart on 01.04.19 at 9:34 pm

So The Donald, giant baby and sadistic a**hole that he is, has found a new group to torture, prod at and cause damage to. 800,000 American citizens, government workers.

The world can breathe a sigh of relief. For the present, anyway, Trumpster is occupied. He only attacks one group at a time. When it was “war on Canada” he hated us and Mr. Dress up, and everyone associated with us. When that was done, he attacked China. Now, he is attacking his own people, 800,000 of them, and he has vowed to keep the war going for “months or even years”.

This is great news.

Keep him occupied.

He’ll leave the rest of us alone. Like a mentally deranged, psychologically damaged child, who likes hurting animals or bullying smaller children, Trump is a one issue man. Once he picks his target, everyone else can relax.

Let’s hope this government shut down lasts for a long while……

#54 Linda on 01.04.19 at 9:53 pm

A house purchase used to be more about a place to raise a family/live in ‘long term’ than ‘financial asset to build family/personal wealth’. As to why so many now see this as the golden ticket to wealth, a quick review of many news articles about property ‘x’ going for ‘y’ over asking explains the belief that RE is a sure thing that will always increase in value.

People purchase lottery tickets in the hope they will win a major prize. Not a few have a major lottery win as their retirement strategy. The difference between purchasing a lottery ticket & purchasing RE is that the chances of selling the RE for ‘more’ are much higher than the chances of winning a major prize.

#55 Remembrancer on 01.04.19 at 9:57 pm

#44 Vampire studies on 01.04.19 at 8:34 pm
32 Dwilly – here it is

Mrs V likes diamonds. She’s pretty good at grading them. Picked up some “10 baggers” (appraisal = 10X purchase price)
————————————————————
That’s 10x on paper, right? How easy to convert back to what was used to purchase them?

#56 georgist on 01.04.19 at 10:10 pm

> They need your tax money.

Agreed. It just scares me that some people are this daft.

#57 Remembrancer on 01.04.19 at 10:11 pm

#33 Anonymous on 01.04.19 at 7:34 pm
Any word about when we will have open, historical RE information in Ontario?

The TREB vs. Competition Bureau case was done months ago and still no new RE upstarts Zillow style.

How come?
———————————————————-
Big RE is throwing money around to silence the startups by buying and crushing them pre-going public, or… there’s no business case yet for aggregating and publishing the data so Madge can see what her neighbours got for their house last week on Kennedy Road compared with 1975 when they bought it…

Zillow for example is first and foremost a media / advertising company – it uses RE listing information to drive eye balls to the top, bottom and side panels and the actual RE for sale…

#58 not 1st on 01.04.19 at 10:15 pm

#52 Ace Goodheart on 01.04.19 at 9:34 pm

—-

Pretty obvious you are snowflake socialist. Trump is a one issue man. Here are the issues he has taken on;

– real tangible border security
– taking the brakes off the American economy
– repatriating business from china
– containing Chinese hegemony
– halting illegal immigration
– curtailing activist judges
– ending foreign entanglements
– encouraging allies to fight their own battles
– détente with North Korea
– reducing foreign oil imports
– removing trade barriers for American products
– lowering unemployment to lowest level in 50 yrs including lowest ever minority unemployment
– calling out the climate change charade
– renegotiate a fair north American trade deal
– trade concessions from EU, Japan, Taiwan, Canada, S. Korea and eventually china.
– halt Chinese espionage
– etc etc

What has the other party done or are you still hoping with Oprah that hope and change will make it all better.

All you know is your are triggered and dont even know why. Kind of like when starbucks screws up your latte on the your way to the pot shop.

#59 georgist on 01.04.19 at 10:19 pm

Quite amazing how people accept realtor “reasoning”.

Montreal has created a lot of jobs and is generally “on the up”. There is a heck of a lot of public investment too.

This alone would account for an increase in land prices.

Each day I come to this blog and search for the phrase “Montreal”, it often does not appear. This blog is primarily anglophone in focus – Garth rarely discusses Quebec / Montreal. That’s fine, no problem there. But it does show that most readers will have zero idea about Montreal.

The idea that investors were willing to pass up a good profit in Montreal prior to Vancouver taxes doesn’t really make much sense. Credit is “on tap” for many “investors”, if they want more they just ask. Would they have foregone profit in Montreal before because they were somehow unable to borrow for Vancouver and Montreal simultaneously? Seems hard to credit, if you pardon the pun.

#60 I’m stupid on 01.04.19 at 10:21 pm

#44 Vampire Diaries

I don’t think the price of diamonds will increase. I think they’ll go the way of pearls.

The price of pearls collapsed one they were being cultured. I think it’s going to be the same for diamonds, unless you have a really rare one.

Just my opinion. My wife’s engagement ring set me back 25k, appraisal of close to 100k, it’s just a number. Every time I look at that ring I feel sick. It just sits there doing nothing. A ring from a vending machine would have done the same job. I honestly think the reason men give women diamond rings is because
1. They’re stupid, myself included
2. To flaunt success, by using the size of the rock as a way of showing off. Just like a fancy car.

The cherry on the cake is that my wife hates her ring. She says it’s too big and wants me to sell it and buy myself a watch. If I did sell it I’d be the ass that sold it to buy a watch. So it sits and sits and sits.

#61 Victor on 01.04.19 at 10:26 pm

Something is not right
https://toronto.listing.ca/detached-home-price-history.htm
shows a similar number of detached homes sold – 334, but the average sold price is 877K, down 157K from the previous month, and much lower than 1145K posted by treb.

#62 MARKETS CRASHING!! (OK, not quite yet) on 01.04.19 at 10:32 pm

Today’s market boost is likely a false flag. I expect a large drop soon, as well as devaluation of the CDN $ this year.

#63 Paul on 01.05.19 at 12:05 am

#52 Ace Goodheart on 01.04.19 at 9:34 pm
————————————————————————————————

Trumps fault wow, just put 3 billion on the table for border sucruity pass the budget and move on.

#64 Detach prices on 01.05.19 at 12:38 am

In Kelowna detach prices are down 17% from BC Assessed values taken in July.

It was right on the front page of the Daily Courier yesterday.

Screw the Vancouver and Victoria numbers. The big crash is well under way in the interior.

“The price of a typical single-family Kelowna home has fallen 17 per cent since then” says the courier.

http://www.kelownadailycourier.ca/news/article_d02f6a9c-0ee6-11e9-baff-eb38f80acd41.html

http://www.kelownadailycourier.ca/business_news/article_4fc0e910-b605-11e8-b4e5-e7bdd1bf44d2.html

#65 BS Assessment on 01.05.19 at 12:48 am

We are sending out early notices of substantial price drops in BC so people don’t sh*t their pants when they get their letter this month.

Oh wait, we only do that (including notifying the all media throughout north America) when prices sky rocket. Because everybody needs that early warning to prepare for a million dollar increase year over year before they get the official letter.

The people of BC will get this scam once their taxes keep rising unabated to where they are paying 10K per year on a simple house.

And don’t worry, Trudeau’s budget will balance itself in 2041.

#66 Enderby, BC on 01.05.19 at 12:59 am

Enderby, BC had the biggest jump in home values in the interior.

Families are moving to where they can afford to raise a family.

A lot of people cashing out of Kelowna and putting pressure on these markets like when people were cashing out of Vancouver a few years back and putting pressure on Victoria and Kelowna and Kamloops.

The gravy flows East to West.

Funny thing is Vancouver dried up, now these secondary areas are dried up.

I am going long trailer parks. No joke.

#67 Smoking Man on 01.05.19 at 1:46 am

Led Astray

The entire attack on easy go Canada will fail.

The freaks and weirdos had a valid reason for taking control of MSM. 40 years ago, they were humiliated and treated like dirt by low IQ people. I can’t blame them.

But like all new power, they just keep pushing it, its addictive, the edge is real, don’t go over it. Big mistake.

Fast forward to today, they are attacking the normies, who don’t even know they exist in the back room. it’s just like something doesn’t feel right here. The orange man makes sense.

It’s all about numbers, the Deplorable’s with great job prospects and wage spikes like never before outnumber virtue signaling compliant sheep who are low in numbers but are projected as huge numbers on TV’s

It’s time to cash in the chips weirdos who I personally like, you have done well. But you can’t stop, Being a gambling man myself I know how hard this is to do.

If you don’t smarten up. 4 more years of Trump, and no T2

#68 Where's The Money Greedeau? on 01.05.19 at 1:55 am

Re: #19 S.Bby on 01.04.19 at 6:07 pm
Every other market except real estate is regulated to the hilt by government entities of some type or other so why not real estate? I can’t see why the one of the most important industries in the country basically left to scammers and charlatans to self-manage. Government types: I see an opportunity there for you.
+++++++++++++++++++++++++++++
I have been looking for a rental for the last year in the Vancouver-Lower Mainland area and cannot believe the amount of scams there are advertised in the Craigslist rental section, seems 2/3rds are scams.
Do not give your phone number out!
Does anyone know of a good publication to find rentals.
It is getting very dis-heartening.
And no, rental prices are not coming down.

#69 Smoking Man on 01.05.19 at 2:10 am

We are here

https://www.youtube.com/watch?v=yh2U6U8-ItQ

#70 Smoking Man on 01.05.19 at 2:23 am

Can’t get Chris out of my heart, He was a god. I’m sad.

https://www.youtube.com/watch?v=oeab5mk7xkA

#71 Ustabe on 01.05.19 at 3:10 am

Death and taxes.
Thoughts and prayers.
Sand and death.
CC and Coke™

#72 crowdedelevatorfartz on 01.05.19 at 5:20 am

@#55 Where’s the money….
“cannot believe the amount of scams there are advertised in the Craigslist rental section, seems 2/3rds are scams….”

****

Yep. A coworker buys and sells on Craigs List, 24hr Bid, etc.

The latest scam…

His phone has been recieving multiple texts from “Telus”( he uses Shaw) or “BC Hydro” (his hydro is included in his rent) or “Visa”( he cancelled his card 12 months ago) is ….

“You have a refund! Just click on this link!”

The relentless sales crap or scams from the internet and “smart phones” is going to kill a lot of businesses.

When was the last time you answered a call from an unknown number?
Unless I recognize the caller…..delete.

Perhaps we should extradite all convicted hackers/scammers to Saudi Arabia and their Whahabbi Law punishment and have the hands of “hackers” surgically removed on a live internet streaming video….?

methinks a few hackers might have second thoughts…..

#73 Frank The Tank on 01.05.19 at 6:54 am

No, RE is not meant for speculation or a get rich quick scheme. Investing is always for the long term and i think RE is an investment, albeit a modest one.

RE is a great asset for families. It’s a home to live and raise your children, it is the best forced savings tool known to man and historically increases in value.

If you don’t stretch yourself thin and plan to own a home for the long term, you’re good.

#74 KLNR on 01.05.19 at 7:36 am

@#52 Ace Goodheart on 01.04.19 at 9:34 pm
___________________

So true.

#75 Steven Rowlandson on 01.05.19 at 7:41 am

“As you know, 2018 sucked. But not just for financial markets. Look what’s happening to everybody’s fav investment – their house.”

Still too expensive. 95% plus discount needed before anything is affordable for sale or rent and that assumes that pay rates remain static.

#76 David Paquette on 01.05.19 at 8:26 am

I thought Calafia Beach Pundit had recent astute observations about the American economy. https://scottgrannis.blogspot.com/ I agree that private sector job growth is what really matters.

He has convinced me to take some money from my gold minor stocks and see what I can find any preferred shares to buy. However, I am not using Helco money as at the end of the day taxes will have to rise for debt interest.

Funny, how this tax business benefits me less than most others. I have no faith in the administration of a carbon tax after watching Rachel Notley’s actions. As someone else said – you don’t want to be a tall sunflower in the field today.

#77 Glengarry Girl on 01.05.19 at 8:50 am

2018 Did not suck for me, it was another great year. I don’t own investments that I worry about their performance. I choose to live a life of adventure and fun and not consumerism. I’m living a Simpe life with my husband of 30 years. We travel full time and have met countless others living the same way. I’ve lived in 1% communities for 20 years, many people were miserable. We raised three Daughters to be fiscally responsible. All are young independent happy and healthy young woman. As a Family when we discuss money, which we do often, it is with confidence not fear. Most have gotten themselves into so much Debt that no advice from investment blogs will help them. For them, learn to live below your income and be happy would be the best advice. My end game goal is not to die with a million in ETFs. It is also not to spend $4000 a month in a nursing home when I am old. These 2 new retirement goals are just the new Fear mongering way to control the herd and profit off of them. Break free, think free, our grandparents never lost a nights sleep over the things we obsess about today.

#78 HowDeepThe Pain? on 01.05.19 at 9:22 am

Whatever happened to the Mattamy hard-done-bys?
https://www.thestar.com/business/2018/04/04/they-bought-their-prebuilt-homes-at-the-markets-peak-now-they-face-financial-ruin.html

Their ‘Community Fairness’ website is gone…did they get a bailout?

#79 crowdedelevatorfartz on 01.05.19 at 9:47 am

@#64 BS Assessment
“Trudeau’s budget will balance itself in 2041.”

****
BS assessment part deux?

#80 crowdedelevatorfartz on 01.05.19 at 9:57 am

…..And as the Economy in China grinds to a halt….President Xi looks around for a nice , soft, easy target to invade to get the populace’s minds off their problems…..Taiwan anyone?

https://www.reuters.com/article/us-china-military/chinas-xi-calls-on-army-to-be-battle-ready-idUSKCN1OZ041

And the president of Taiwan responds…..

https://www.reuters.com/article/us-taiwan-china/taiwan-president-calls-for-international-support-to-defend-democracy-idUSKCN1OZ058

China’s own propaganda cant accept anything less than “owning” the South China Sea and “owning” the “rogue province” of Taiwan……..

Interesting times…
100 years after WW1 ends we get dragged into another?

#81 KLNR on 01.05.19 at 10:15 am

@#76 Glengarry Girl on 01.05.19 at 8:50 am
2018 Did not suck for me, it was another great year. I don’t own investments that I worry about their performance. I choose to live a life of adventure and fun and not consumerism. I’m living a Simpe life with my husband of 30 years. We travel full time and have met countless others living the same way. I’ve lived in 1% communities for 20 years, many people were miserable. We raised three Daughters to be fiscally responsible. All are young independent happy and healthy young woman. As a Family when we discuss money, which we do often, it is with confidence not fear. Most have gotten themselves into so much Debt that no advice from investment blogs will help them. For them, learn to live below your income and be happy would be the best advice. My end game goal is not to die with a million in ETFs. It is also not to spend $4000 a month in a nursing home when I am old. These 2 new retirement goals are just the new Fear mongering way to control the herd and profit off of them. Break free, think free, our grandparents never lost a nights sleep over the things we obsess about today.
________________________________

Agreed. 2018 was fantastic for me and my fam.
Being debt free is key.
Do you own things or do they own you?

#82 dharma bum on 01.05.19 at 10:16 am

#76 Glengarry Girl

I choose to live a life of adventure and fun and not consumerism. I’m living a Simple life with my husband of 30 years. We travel full time and have met countless others living the same way. I’ve lived in 1% communities for 20 years, many people were miserable.
——————————————————————

Congratulations!

You may not realize it, but you are an enlightened Dharma Bum.

Welcome to the club!

#83 millmech on 01.05.19 at 10:30 am

Mattl
Your paying just over .5% for property tax in K Town, add in sewer and water rates, heat, light, power and maintenance and upkeep to maintain your asset I think you would be above 1%.
Remember that your increase in “value’ will cost you more at tax time and to access your wealth will cost you prime plus 2%-5%.
Hopefully you will not have another year of sitting in your asset in the summer due to poor air quality(also the Okanagan area is already concerned about another year of spring flooding again)
Hopefully your house is built on solid ie rock foundation as there are many houses in that area that have foundation/structural issues. This is due to underground springs coming out of dormancy/high water tables which are causing subsidence issues in a number of subdivisions(friend of mine owns a restoration company, very busy guy)

#84 Asterix1 on 01.05.19 at 10:40 am

Frank The Tank on 01.05.19 at 6:54 am
.
… it is the best forced savings tool known to man and historically increases in value.
———————————————————————————————

The best savings plan is the one where you get paid interest, not the other way around.

#85 not 1st on 01.05.19 at 10:43 am

#76 Glengarry Girl on 01.05.19 at 8:50 am

—-

Its easy to look back from your retirement and admonish everyone else. Glad you are comfortable but maybe you should try raising a family now. A lot has changed in the past 20 yrs. Inflation has eaten its way into everything.

#86 Fish on 01.05.19 at 11:08 am

Canadian Housing Reports
Analysis of national and provincial trends in housing affordability and developments in major metropolitan housing markets.

http://www.rbc.com/economics/economic-reports/canadian-housing-forecast.html

#87 Trumpocalypse2019 on 01.05.19 at 11:10 am

#79 crowdedelevatorfartz is correct

China needs a distraction.

Trump needs a distraction.

The probability of major military conflict within 120 days is now over 90%.

Mueller about to drop major bombshells, with the new power of the Dems.

This does not end well.

PREPARE.

OR PERISH.

#88 Nick yyc on 01.05.19 at 11:22 am

My wife and I bought our house December 2017 in Calgary, with only 10% down so we were stress tested. I think the stress test is smart and forces people to spend more within their means. We don’t have large salaries more like average to below for Calgary and even with the stress test they were allowing us to take out a mortgage for $630,000. That is utterly insane and we ended up spending $380,000 and can live fairly comfortably. Our housing is higher then it was renting but it was also kind of a shithole.

#89 Reality is stark on 01.05.19 at 11:27 am

To #59.
That is the saddest story I have ever read.
What I would have done with 25K at that time would blow your mind.
What you should have done:
Take note of the most intelligent thing John Kordic ever did. He bought his future wife a rock worth what she thought was 100K. When things ended she went to cash in she found out it was glass and worth $800.00.
Now you could have pawned your wife’s glass ring and got your watch knowing you invested the rest offshore like I did way back when.
Life is full of lessons.
You can be somebody or you can be somebody’s fool.

#90 Vampire studies on 01.05.19 at 11:28 am

54 Remembrancer/59 You’re NOT stupid. Good morning (pacific time)

Mrs V sold a few smaller pieces basically doubling her money, but that was only a coupla hundred bucks on any one item. Even full retail prices are below the appraised values, so you’re usually dealing in the 10-30% range. She checked at the local pawn shops and they would offer about 15% on the appraised value. The bigger gems are more difficult though she made about $500 on one.

The best deals were had during the GFC as people in the US must have been unloading them. Mrs V stopped buying when she figured she had way more than what she could wear.

I suppose the values could drop considerably (as with any collectible). Even though they don’t “do it” for me, there are still people that crave them. Again, just like any collectible. And the existence of cubic zircons doesn’t seem to have any effect.

Downside is cost of insuring the larger pieces. she was worried about taking them to Vegas. I told her that was probably the safest place to wear them!

Again, the rule was not to go crazy with them. total invested was very small percentage of investible assets.

#91 crowdedelevatorfartz on 01.05.19 at 12:18 pm

@#86 Trumpocalypse2016,17,18,19
“#79 crowdedelevatorfartz is correct…”
++++

hey hey hey.
Dont be plagarizing my research there Trumpy…..
You have to learn to do things for yourself to PREPARE.

#92 LP on 01.05.19 at 12:19 pm

Re the hated diamond ring

Go to a reputable artesan jeweler. Take your wife with you. Have the jeweler sketch out a re-design that your wife loves, give you a quote, hire her/him to do the ring over. S/he may not even use the full value of the stone in which case you’ll get money back. By the sounds of it you could buy a pretty special watch with the rebate.

#93 LP on 01.05.19 at 12:27 pm

Saw this somewhere recently: ” I’d rather have a passport full of stamps than a house full of ‘stuff’.”

#94 MF on 01.05.19 at 1:11 pm

88 Reality is stark on 01.05.19

Finally something you posted that I agree with. The ring, the wedding celebration are a total waste.

Marriage itself I think is necessary to preserve the family
Unit, but the wedding is total crap and a waste.

MF

#95 Frank The Tank on 01.05.19 at 1:12 pm

#83 Asterix1 on 01.05.19 at 10:40 am
Frank The Tank on 01.05.19 at 6:54 am
.
… it is the best forced savings tool known to man and historically increases in value.
———————————————————————————————

The best savings plan is the one where you get paid interest, not the other way around.

—————————————————————

Most people don’t have the discipline to save that much unless forced by mortgage. Hence “forced mortgage tool”. But of course everyone here can do it because they are better than that.

#96 Trumpocalypse2019 on 01.05.19 at 1:14 pm

#37 Crawl Clausewitz

“I see a major black swan event war in 2019-2020 with Trump, the unelected defender of the free world, battling China….

These will be the modern equivalent of “living in interesting times”

Bang on. America and China are rattling sabres and neither has good options otherwise, as the Chinese economy sags and Trump faces indictment.

Don’t forget – Russia is in the corner with its eyes on eastern Europe and Ukraine, with much to possibly gain from a Sino-American War. As soon as the those two start shooting, Russia will move, unimpeded. The EU will be too divided to act, and the USA too involved with China. International treaties will quickly break down. Social chaos will erupt.

There will be nukes.
There will be exodus from major centres everywhere.

Only those preparing now will have a chance for security and survival in the long decades of misery ahead.

#97 crowdedelevatorfartz on 01.05.19 at 2:05 pm

@#92LP
“I’d rather have a passport full of stamps than a house full of ‘stuff’.”

****
Im sure the family that ends housing the penniless, too old to work, I spent it all instead of saving, “world traveller” will love hearing the same stories repeated over and over as Alzheimers sets in……

KD and cat food while flipping through the photos….awesome.

#98 Ace Goodheart on 01.05.19 at 2:08 pm

RE: #57 not 1st on 01.04.19 at 10:15 pm
#52 Ace Goodheart on 01.04.19 at 9:34 pm

—-

“Pretty obvious you are snowflake socialist. Trump is a one issue man. Here are the issues he has taken on;

– real tangible border security (by building a border wall that makes it impossible for American customs agents to see what is going on in the other side….no, wait, we need a fence, not a wall…..but there is already a fence)

– taking the brakes off the American economy (by tariffing everything – no wait, that crashed the stock market, as no one can make money with all the ridiculous tariffs.)

– repatriating business from china (so that US citizens can look forward to low wage jobs in factories, rather than owning those factories – and so US citizens can pay 20x as much for their consumer goods, because everything has to be made in the USA).

– containing Chinese hegemony (by allowing China to take over Taiwan…oh, wait, is Trump not in favour of that, dictators who “take power” rather than being elected?)

– halting illegal immigration (of anyone who is not white….white folks, well we just turn a blind eye to that)

– curtailing activist judges (who rule against his racist xenophobic policies)

– ending foreign entanglements (by simply bowing out – you can do what you like now, foreign dictators. The USA has turned isolationist).

– encouraging allies to fight their own battles (unless those allies are North Korea and Russia, in which case the USA will help out, though secretly)

– détente with North Korea (in which he appears to have offered and delivered on a policy of allowing North Korea to keep their Nukes, reducing military exercises in the Korean peninsula, putting South Korea at risk, and had a good talk with Kim Jong, his new best friend, about possible Trump family real estate developments on North Korea’s beautiful beaches)

– reducing foreign oil imports (by shale oil….oh, wait, that was already there before Trump took power)

– removing trade barriers for American products (this is just not true. Trump has created trade barriers for American products. He has tariffed everyone, and they are all tarrifing back. He now has to subsidize his domestic industries, as they can’t export their products anymore)

– lowering unemployment to lowest level in 50 yrs (if he had anything at all to do with this, which is debatable) including lowest ever minority unemployment (because he banned Muslims, jailed blacks, and kept everyone else who isn’t white, out of the USA. )

– calling out the climate change charade (climate change is real. But yes I get your point. Carbon taxes are not going to work. They will just create rebellion and civil unrest, because they unfairly target the poor).

– renegotiate a fair north American trade deal (this is a joke. If anyone thinks this deal, made with a gun to our heads, is fair, you have to read it again. Fair to the USA maybe, not to us).

– trade concessions from EU, Japan, Taiwan, Canada, S. Korea and eventually china. (tarrifs from all of those countries. And everyone hates the USA now).

– halt Chinese espionage (by falsely having the Huwaie lady arrested by Canada, and then offering to release her if China will sign a trade deal. Meanwhile, Chinese espionage continues)

– etc etc

#99 Jimers on 01.05.19 at 2:21 pm

#57 not 1st on 01.04.19 at 10:15 pm
-Well Said!

#100 KLNR on 01.05.19 at 2:41 pm

@#98 Jimers on 01.05.19 at 2:21 pm
#57 not 1st on 01.04.19 at 10:15 pm
-Well Said!______
_______________________

LOL

#101 Glengarry Girl on 01.05.19 at 3:07 pm

#84 Not 1st

Every generation has their challenges, same principals can be applied to your future. Live Simply, don’t spend money you don’t have, don’t buy a bunch of stuff you can’t afford. Simple pleasures in life can be achieved now just like 30 years ago. No one owes you anything. My kids are 24, 23 and 19. Oldest 2 have Graduated with a job ready career, paid off their small student loans within a few paychecks. They lived lean worked PT, shared housing, didn’t have a car for 3 years, no $1000 phone either. They have supported themselves and paid all their own bills since age 17. One lives in Toronto, Architect firm, works downtown. One just graduated Civil Engineering, started job this week. Don’t tell me how you can’t make it, I don’t buy it. If you can’t make it now, you are in for some hurt on this next recession. If my kids had your attitude, I’d be worried. They live life looking forward to the future. We know endless people that are decades younger than us and have achieved financial independence by being realistic and resourceful and adapting a Simple Life, some also raise children. If I were young and starting again fresh, I would have just as much of a positive attitude about my chances of being where I’m at right now, in fact, I’d have achieved it much earlier.

#102 IHCTD9 on 01.05.19 at 3:10 pm

#95 Trumpocalypse2019 on 01.05.19 at 1:14 pm
——-

Here’s a good vid for you to watch:

https://m.youtube.com/watch?v=4kmDB27eEqg

A man named Selco testifies (not his voice) to his SHTF experience during the Bosnian war while trapped in an urban environment for 1 year. No food, water, gas, electricity, Police, medical, sewer services, basically nothing.

A good real life look into what regular people do to survive when civilization ends overnight.

Any survivors of the Balkan war here on the blog?

#103 Glengarry Girl on 01.05.19 at 3:27 pm

#84 Not 1st

Please disregard my previous post. I’ve just gone back to the comments on this thread and I see that you are quite conflicted. On one hand, you feel sorry for yourself and feel like life is somehow more unfair in 2018, but you are also angry with Ace and call him a snowflake socialist because he doesn’t like Trump, maybe he is a realist. I also see that you believe Trump is a Stable Genius that is going to solve all of the Worlds problems. If I had read this prior, I would not have wasted the energy to try to give you a perspective on how Life is Good and you can be Happy, even in this unfair World.

#104 Linda on 01.05.19 at 4:00 pm

I’m with the ‘they need your tax money’ comment. Case in point, Calgary, aka Cowtown. Apparently the oil patch layoffs are ongoing & downtown assessment values for commercial property have continued to drop. As businesses cry out for tax breaks (& the local government has dipped into various funds to offset tax increases for local businesses for the 3rd year in a row) the assessed values for a rather large swath of residential RE has increased, despite the reported drop in house prices reported by local RE boards. Local government is also considering shifting more of the tax burden to residential from commercial in order to make up revenue shortfalls.

Problem is, quite a few of those residential households are occupied by former oil patch workers. Not sure how someone who was laid off from their high paid job & who may not have found alternate employment is going to be able to deal with a request to pick up the revenue shortfall via property tax increases. Even if those folks have found alternate employment, the amount of household income is probably going to be much less than what they earned in the patch. Less money in their pockets means less money they can spend supporting local businesses.

On the upside, employment numbers have been better than expected in recent months & there are good reasons to believe 2019 may be a good year for the markets. May 2019 be healthy, happy & prosperous for all!

#105 Kevin on 01.05.19 at 7:21 pm

It was all going great until that last paragraph. Did some crazy young FOMO couple just hijack your blog? I’m curious what constitutes “need” LOL

#106 Boomer Bill on 01.05.19 at 7:26 pm

#100 Glengarry Girl
” If I were young and starting again fresh, I would have just as much of a positive attitude about my chances of being where I’m at right now, in fact, I’d have achieved it much earlier.”

In the GTA? You have to be kidding me. I have been a homeowner in Toronto for 30 years. My first home which I still own and is now a rental has appreciated over a million dollars from when I bought it. When my wife and I bought it, we were making almost half of its value in our combined salaries. We were young and just starting out. Today a young couple would have to be making about 700k in combined income to buy that home in the same salary to house value ratio that I bought it at. How many young couples make 700k in combined incomes? Do you not see a glaring difference?

#107 Glengarry Girl on 01.05.19 at 8:56 pm

#105 Boomer Bill

How did you confuse what I said about being able under today’s conditions to build a happy and successful life into buying a house in GTA????