Evil

Don’t be surprised real estate’s collapsing in BC. Sales have fallen by 40%. Prices in some hoods are down by a third or more. Realtors are retraining as payday loan guys, trying to improve their image. What lies ahead for markets in Van, the LM, Victoria or the Okanagan could be spectacular.

Unique to that troubled province is a government made up of political amateurs, ideologues, socialists, financial illiterates and incompetents. The Dippers, led by Comrade Horgan, have embarked on a campaign to destroy the real estate market because, inherently, they equate property ownership with being rich. And rich is, like, evil.

The trouble is, it’s backfiring. And the biggest mess is about to happen.

On top of a withering 20% anti-foreign buyer tax, the empty houses tax and the big-house tax is a ‘speculation’ tax which has nothing to do with speculating. It’s just a tax on wealthy people who might own a second home, for business or retreat. This affects almost two million residents and covers Victoria, Van, Nanaimo, Kelowna and some surrounding turf. There’s nothing else in Canada like it, forcing people to pay .5% of the assessed value of their property every year. If you happen to live in Alberta or Ontario and have a BC retreat, the hit is an astonishing 2% annually. The message: don’t come here. You’ll regret it.

The majority of people affected are BC residents, however, who already pay income tax, sales tax, property tax and bought their second properties with after-tax dollars. In this wealth redistribution scheme, they’ll now hand over more – $5,000 extra every year on a $1 million residence. It might be a traditional family cottage owned for decades, a condo in downtown Van used for business, or a future retirement home in the Okanagan. No mercy. All taxed.

The NDP logic is nobody should own more than one house, so people with two must be punished, to”help identify speculators and empty homes, allowing the government to crack down on speculation and make housing more affordable.” Seriously. They believe that. Or perhaps it’s just a ruse to raise money.

After all, the BC Assessment Corp. just finished sending out notices across the province indicating a big surge in property values at the same time market prices are falling. And now a tax bill is about to be mailed, based on that inflated assessment. Makes you wonder…

But there’s something else rotten here. This isn’t just a tax. It’s a tax trap.

The Dippers have chosen to use a negative-option implementation, likely for the first time in Canadian tax history. Every single property owner in all of those municipalities will have to pay the assessed tax unless they apply for and are granted an exemption by the end of March. So citizens have to swear their real estate is a principal residence or leased out for at least six months of the year (or they are disabled, or sick or being divorced) in order to escape.

“Good grief! I shudder to think of the huge number of applications that won’t be submitted by the less savvy part of the population wrt gov’t forms and applications,” says blog dog Susan. “I particularly feel this will marginalize the less-well educated and those whose first language is not English. Huge bureaucratic mess.”

You bet. As planned. Negative-option billing has largely been banned in Canada for exactly these reasons (see the federal legislation here). Ontario has strict laws against it. When telecommunications giant Rogers tried to use negative-option marketing a few years ago, it was slapped down and publicly humiliated. This is the sleaziest of methods to force products onto unsuspecting or inattentive consumers. It’s unconscionable to implement a tax in such a fashion.

But, this is BC. Run by people with an agenda, and scant experience and thin ethics. To date the NDP anti-house campaign has toppled property values in more affluent neighbourhoods, done nothing to increase the vacancy rate or reduce rents and  helped make affordable entry-level homes less affordable. With local real estate markets now suffering serious sales declines and a flood of listings about to hit in the next six weeks, falling equity is a threat to middle-class families, many of whom have put all their net worth into those homes.

Now every one of them has to be vigilant to ensure they get the Speculation Tax notice, complete it correctly, submit it on time and gain an exemption – or face a fat tax bill due on July 2nd. Imagine what that will do to the market.

And, even worse, homeowners must go through this exercise every single year, to ‘prove’ to the government the real estate they own is being used for purposes the government favours. Yes, in Canada.

“Vancouver is in full-blown correction mode,” RBC economist Robert Hogue said this week. “Prices are poised to depreciate more — potentially a lot more considering the degree to which they are still unaffordable to average buyers.”

No doubt the Dippers and their eat-the-rich rabble of supporters will cheer this. But forcing a market collapse in a province where a third of the GDP is real estate-related, where the savings rate is negative because people strained their finances to buy, and families have gambled everything on one asset, is not exactly progressive. Nor will it ever mean the average worker will afford the average house in Vancouver. It just means overall economic collapse, in which the little guy always gets squished.

Thank God there are mountains.

224 comments ↓

#1 Don't be so sure ... on 01.17.19 at 3:55 pm

Thank God there are mountains.

The pine beetle crossed them heading east …

#2 Smoking Man on 01.17.19 at 3:57 pm

Ouch!!! Canadian ADP numbers in. -13000 jobs.
How’s Butts going spin this?

#3 not 1st on 01.17.19 at 4:03 pm

Thank God there are mountains.

—–

Garth you might be welcome in Alberta after all.

Now you just need to realize there is another evil force on the east side of Canada too.

#4 Howard on 01.17.19 at 4:06 pm

All sounds good to me.

And btw, rents HAVE come down slightly in Vancouver and with all the new supply coming online in the next few years it is safe to assume they will fall further even with the increased immigration. Condo prices have peaked and now firmly on the back side of the ski slope, so those too will continue to drop. So the measures are working as planned. All that needs to be done is to do as New Zealand has done and ban foreign ownership once and for all. Canadian homes for Canadians, full stop.

#5 what_facts on 01.17.19 at 4:13 pm

Whoa, there big fella. Some of your numbers here are misleading while others are just…wrong.

Affects 1.6 million (not 2) in that they have to file for the exemption. Actual impact of tax is on approx 32,000.

“One of the more surprising pieces of information confirmed by the ministry Wednesday was that only 32,000 homeowners will actually be subject to the tax.

The other 1,568,000 letters that go out later this month will be directed to people who are not actually targets of the speculation tax”

And the 6 months figure is wrong :

“…one of the main grounds for securing an exemption to the tax for secondary properties is to claim the property was rented for at least three months during 2018.”

– Vaughn Palmer’s column today.

(a) It’s 1.7 million people and I said ‘almost two million.’ Within literary bounds. (b) It will affect everyone who doesn’t fill in the paperwork and be approved. (c) The six month figure is correct for 2019 and all years going forward. – Garth

#6 Ponzius Pilatus on 01.17.19 at 4:14 pm

Garth,
I’m confused. You’ve always been against owning and investing in cottages.
Now the NDP are acting to discourage people from putting all their eggs into RE, and you’re all worked up.
Wazzup?

#7 SunShowers on 01.17.19 at 4:22 pm

I see no problem with any of this, except the negative option implementation. That is objectively sleazy.

#8 Wallflower on 01.17.19 at 4:26 pm

The people who I know who own multiple properties in Vancouver live in Grand Cayman.
Not feelin’ it. Stick it.

#9 Sprigg on 01.17.19 at 4:27 pm

R.I.P John Bogle

https://www-nytimes-com.cdn.ampproject.org/v/s/www.nytimes.com/2019/01/17/business/mutfund/john-bogle-vanguard-investment-advice.amp.html?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s

#10 Godth on 01.17.19 at 4:30 pm

i just had to start clipping my dog, his curly-cues were maxed out, his felt undercoat was starting to mat, and he stinks like cheese. i needed to lure him into the garage, so i went in and started getting the clippers ready knowing he couldn’t help but be curious. he’s a clever fellow though, and wary, so he stood by the door knowing he could escape. my next move was to open the freezer as i know that he knows that’s where his food comes from. worked like a charm, he couldn’t help himself and curiosity got the better of him. i closed the garage door and he was trapped. once trapped he knows the game is up and comes when i call him over, no fuss, no muss. he’s about a third clipped now – i take my time.

welcome to domestication.

#11 Mike on 01.17.19 at 4:33 pm

.
Meanwhile in Slurrey and White Rock, sales are bit slow but prices holding very well for SFHs…..Easy 1.1M for home selling 800k in 2015.

People here got lot of extra money and HELOCs to buy more RE….no stress test, no NDP can impact the lower mainland. If people cant sell for 1.1M, they simply wont sell.

Ball is in buyers court to buy a SFH or…just buy a condo.

#12 Figure it Out on 01.17.19 at 4:35 pm

Horgan is the 3rd most popular premier in the country, by the looks of it: http://angusreid.org/premier-approval-dec2018/

It’s worth remembering that the same country which gave us the term “laissez faire” (circa 1681) also gave us “guillotine” circa 1789.

Most times the rich do the eatin’, but sometimes they get et.

#13 Renter's Revenge! on 01.17.19 at 4:42 pm

#128 Shawn Allen on 01.17.19 at 3:23 pm

New Rate Reset Bank Preferred pay 5.2%

TD Bank out today with a 5.2% rate reset preferred with a spread of 3.27% above the five year Canada on reset. Bank of Montreal had same last week. These sold out quickly.

This is good news and bad news.

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

No kidding. Anyone who bought shares in the last issue (Series 20) must feel like a chump now. They just issued it in September at a yield of 4.75% and a reset spread of 2.59%. The shares are down from $25 to $22.65, with the current yield smartly matching that of the new issue.

Why the sudden increase in spread? Any ideas?

#14 Chimingin on 01.17.19 at 4:52 pm

I truly hope that the NDP never wins a federal election. The Liberals are bad enough…but this gang is too terrifying to contemplate.

#15 Millennial Mantra on 01.17.19 at 4:53 pm

Vote NDP. Orange is the happiest colour.

#16 mitzerboyakaQueencitykidd on 01.17.19 at 4:57 pm

i know i have said it before
but its worth repeating

Dogs are great
beer is good
people are crazy

#17 CharlieDontSurf on 01.17.19 at 4:58 pm

Hey Mike @#11

Where do you get your weed from?

#18 Slum Lord Millionaire on 01.17.19 at 5:03 pm

They are dividing, conquering and leading the speculators away from the herd.

#19 Shawn Allen on 01.17.19 at 5:06 pm

Beyond Disgusting, Dippers Will Reap What They Sow

I’m in favor of fair taxation and probably higher taxes for the rich in some cases but this is most unfair.

Apparently, in B.C. the State does have business in the bedrooms of the nation (to see if beds occupied). No truth though to the rumor that there will be a requirement for two people per double bed.

If Canada had property rights in its constitution this would likely be unconstitutional.

“If you happen to live in Alberta or Ontario and have a BC retreat, the hit is an astonishing 2% annually.”

This part is particularly disgusting as it treats other Canadians as foreigners.

Agreed the negative billing aspect is particularly odious.

#20 Paul Allan on 01.17.19 at 5:08 pm

I think you completely miss the mark on this file Garth.

Respectfully, as far as I can tell, you haven’t set foot in Vancouver in ages and you have no first hand experience with the city in recent years. It’s become completely untethered from reality and every single person knows it. Whether you are a property owner or not. BC has been outed internationally as a jurisdiction that has been absolutely ravaged by dirty money flowing through it – tip to tail. The economy out here has always been geared towards fast, loose and easy money. Be it as the epicenter of shaddy stock deals in North America or in recent times shaddy real estate activity. It has become a global poster child for what NOT to do in terms of letting your real estate markets run wild. The current government are acting like adults and have stepped in to clean up the disaster that the Liberals left in their wake. The former Liberals did ABSOLUTELY NOTHING to tame the out of control market and in fact did everything they could to STOKE THE FLAME. Remember Christy Clark’s down payment loans??? Moral Hazard in the extreme…

The developer lobby for the last 30 years was successful in convincing every single person in BC to believe that the only way to get ahead was to speculate on real estate. Well, a new sheriff is in town and they are basically calling it for what it is – INSANITY.

The province needs a wake up call and we finally have it.

Thank god for the NDP.

#21 YVR 60% crash on 01.17.19 at 5:09 pm

Majority of local resident of B.C just can’t get enough of the Honourable John Horgan and Honourable David Eby

The message: Don’t come here! Eat your heart out!

#22 Kilt on 01.17.19 at 5:13 pm

It’s not a collapse. It is a buying opportunity. Just need prices to drop another 30%.
Job well done by the NDP. Now if they can only fix ICBC.

Kilt

#23 Zapper on 01.17.19 at 5:15 pm

Look for a class action lawsuit against the NDP/Green Party for forcing people to fill out form to get their Tax credit.

Those who have to sell will put their homes on the market, all others will sit and wait till the next election which the NDP/Greens will loose. Life in BC will get back to normal with another corrupt, business savey, Liberal government. Thats just the way it is out here in Gods Country.

I sold in August and still sitting on my money but even though I hope there is large price drops in rural BC, I don’t believe it will be overly significant, 5-10%. On the lower Sunshine Coast houses aren’t selling but prices are well above what they paid just a couple years ago.

You can bet there are some nervous developers.

#24 Ponzius Pilatus on 01.17.19 at 5:18 pm

And the survey SAID:
Overall, Average Canadian think they’ll need 700k for retirement. BCers peg it at a cool 1mill.
Good job Financial Advisers and TNLTB.
The good news is, 16 percent say they are not worried, because they will win the Lottery.
Only in Canada. Pity!

#25 Crisis on 01.17.19 at 5:19 pm

We can’t have families of five living in shoes. My kids will need homes of some kind. We don’t all need to be multi millionaires speculating on real estate and winning lotteries either. There are more productive things to be done. The crisis should never have got this far. Greed drove it and now tax dollar greed will end it. Remember if the price isn’t changing then no one is buying and Horgan ain’t getting as many tax dollars. This puppy is going down 50% at least. Banger. And before anyone gets excited I also own.

#26 I love it when... on 01.17.19 at 5:19 pm

…rich people whine about being asked to pay a little more.

#27 R on 01.17.19 at 5:20 pm

“The NDP logic is nobody should own more than one house, so people with two must be punished”

Or is it just that it’s more important for people to be able to afford a single home than for the richer to have an even playing ground in buying extra houses?

#28 Grumpy Cat on 01.17.19 at 5:23 pm

Good!

#29 Dolce Vita on 01.17.19 at 5:24 pm

Robert Hogue a banker and economist that does not obfuscate, imagine that?

YVR locals pondering the “C” word:

http://vanmag.com/city/is-vancouvers-real-estate-market-crashing/

Realtor Ian Watt is forecasting downtown YVR price drops of 30-40% in 2019.

Psychology of doom and gloom in place. We will find out soon enough if it is true BC’s economy driven by RE; that is to say, psychology makes for 1/2 a recession, economy the other 1/2.

What a mess.

Argue all you want 416 RE mavens, you’re next…look at the historical HPI chart since 1980 for Cdn. cities, not even mighty Trauma withstood the onslaught.

After all, misery does love company.

Then there is also such a thing as Garth’s “slow melt”, death by a thousand cuts, theory (which incidentally Garth, has never happened and No, “it’s not different” this time).

Yes, yes Garth…Buonanotte.

#30 Dave on 01.17.19 at 5:25 pm

The financial system has rigged this real estate market, they know to manipulate the masses. The debt result has been systematically planned.
Now the masses are soooo angry and betrayed, they only want blood. Treat some like an animal and the become one.
Most people in BC in favor of anything the NDP will do to destroy the real estate market, regardless of long term consequences.
Consequences will comeup but not for awhile

#31 Guy in Calgary on 01.17.19 at 5:25 pm

It is actually amazing how different Notley and Horgan are when they are both NDP. Generally I would never vote NDP but I have come to like Notley and may vote for her.

#32 Kilt on 01.17.19 at 5:29 pm

Hey Garth, if a persons owns a condo in van does he have to pay 2% tax if he lives in Australia and numbered company owns it? Thx
Kilt

#33 Ponzius Pilatus on 01.17.19 at 5:29 pm

That dog is not evil. The opposite.
By destroying the remote he is telling his owner:
“Get your sorry ass off the couch and take me for a walk.
We both need exercise and need a break from the moldy smell of your basement rental.”

#34 Im Therious on 01.17.19 at 5:30 pm

Garth,

Is your preferred option to have “let the market take care of itself”?

If so, how would that have made prices affordable? Or is that not a consideration.

A blog post on what you think governments all all levels should have been done would be enlightening.

Cheers.

#35 acdel on 01.17.19 at 5:30 pm

Every single Albertan that I know, have sold or are trying to sell there vacation cottage or home in B.C..

These are people who worked very hard, usually owned the property from 20 to 40 yrs, always involved in community affairs, help grow communities, always partook in helping neighbors, supported the local farmers and communities and for what? To be labeled a criminal or a outsider, what a fricken joke! Comrade and his followers deserve exactly what they get! What a shame!

#36 Dolce Vita on 01.17.19 at 5:31 pm

PS:

I howled when I saw that dog image. Too funny.

Evil true (from the perspective of the human holding what’s left of the remote) and I’d say malicious, content and a feeling of accomplishment (from the dog).
—————————–
The Real Buonanotte.

#37 45north on 01.17.19 at 5:33 pm

But, this is BC. Run by people with an agenda, and scant experience and thin ethics. To date the NDP anti-house campaign has toppled property values in more affluent neighbourhoods, done nothing to increase the vacancy rate or reduce rents and helped make affordable entry-level homes less affordable. With local real estate markets now suffering serious sales declines and a flood of listings about to hit in the next six weeks, falling equity is a threat to middle-class families, many of whom have put all their net worth into those homes.

which reminds me a someone who posted here:

Dog in the Fight

except he’s not

the middle class in British Columbia is going to feel threatened. Some will be wiped out. Along with the Dippers.

#38 Dolce Vita on 01.17.19 at 5:37 pm

#2 Smoking Man

Easy.

They’ll Seasonally Adjust them to +35,000 jobs (just like “5 Loaves & 5 Fishes” StatCan does).

OK, I lied about Buonanotte but I couldn’t resist…

#39 Ponzius Pilatus on 01.17.19 at 5:37 pm

#22 Kilt on 01.17.19 at 5:13 pm
It’s not a collapse. It is a buying opportunity. Just need prices to drop another 30%.
Job well done by the NDP. Now if they can only fix ICBC.
——————
Don’t worry ICBC will soon be profitable again.
In a few years, the roads will be so congested that there will be mostly fender benders to fix.
And injuries caused by road rage attacks and shootings are not covered by ICBC.

#40 Ponzius Pilatus on 01.17.19 at 5:42 pm

#22
and I forgot to mention that Christy, whose government siphoned billions from ICBC into general revenue, is no longer around.

#41 Lame on 01.17.19 at 5:45 pm

If you’re going to assess things from a provincial level it would be nice if you’d provide recommended solutions instead of picking at what’s been set up.

Applying for a tax exemption is nothing new; people in bc have been doing it for years when claiming their home owner grants. The ‘marginalized’ and ‘less educated’ will likely figure out how to tick box to claim the exemption – just like they’ve already been doing. If you were unsuspecting that the government was going to ask you for tax money, you’ve got bigger problems than you know.

#42 yorkville renter on 01.17.19 at 5:46 pm

The garbage I hear from NDP supporters about “an honest day’s work” ensures I’ll NEVER vote NDP. Ever.

Do we need a social safety net? Absolutely. Should we ever tax income more than 50%? Absolutely not.

#43 tccontrarian on 01.17.19 at 5:46 pm

“…Realtors are retraining as payday loan guys, trying to improve their image.” – GT
******

Haha, but only because it’s true for many of them.
Thanks for the laugh!

I have my eye on a couple properties listed for $1.4-1.6 out here in Langley, BC. Nice but still over-priced, as far as I’m concerned.
I’ll wait till sub-Million, 2-3 years out methinks. Let the dippers do what they do best … but this was going to happen anyway – just not as fast.

TCC

#44 La-Sack on 01.17.19 at 5:47 pm

correction It’s .5% for Canadian residents and 2% for foreign owners and satellite families.

#45 Island Rock on 01.17.19 at 5:47 pm

What #20 Paul Allen said

#46 AJ on 01.17.19 at 5:52 pm

A friend of mine was telling me yesterday how he will be “far ahead” with his house purchased 5 yr ago that had appreciated about 60% (Lower Mainland – where else).

Even with a 30% drop in prices he will make money – says he.

NOT EVEN CLOSE my friend.

No, you are not making money, you are actually losing your shirt and I showed him some simple math (purchase price rounded for simplicity):

purchased for $1,000,000
appreciated 60% to $1.6

if it falls 30% with the commission and fees it comes down to $1m again.

Even if it falls just 20% with the renos+maintenance+taxes paid he barely breaks even.

Now if you consider the opportunity cost of his sizeable downpayment, mortgage overpayment compared to renting a similar house in the same neighbourhood even a 10% drop puts him close to the water level…and btw I think it is way past this point…

Did I tell you that this same friend has 2 more houses in similar situation?

Oh man, people are so delusional…

#47 Dazed and CONfused on 01.17.19 at 5:54 pm

“…..Negative-option billing has largely been banned in Canada for exactly these reasons (see the federal legislation here). Ontario has strict laws against it…..”
—————————————————

Let’s not be giving the ethically bankrupt Drug Fraud any new ideas.

#48 not 1st on 01.17.19 at 5:55 pm

#20 Paul Allan on 01.17.19 at 5:08 pm

Thank god for the NDP.

——

OMG, I spit out my cornflakes when I read this. Seriously dude. Why don’t you get smart and elect a conservative govt into that hellhole and get it cleaned up right. I am sure Ford would be glad to help you out of your socialist predicament.

#49 kommykim on 01.17.19 at 6:01 pm

If you think about it, the BC homeowner grant is already “negative billing” where you are charged an extra $570 if you do not claim it.
This new tax is more honest in that it’s actually called a tax.

#50 Trump Rules on 01.17.19 at 6:04 pm

in the USA, similar homes go for 25% or less than in Canada. Homes are for living in…not investing and profiting especially by outsiders. NDP is doing the right thing….the long term will prove this!

#51 Goop on 01.17.19 at 6:10 pm

This post is alarmist partisan nonsense.
You’re better than this, Garth.
Rich Vancouverites are still rich and house and condo prices are still removed from reality… and rents are dropping here.
Whoever is here in the LM feeding you this stuff should be fired.
The brand new 12 tower Oakridge development by Westbank is selling at $2300 per sq. ft. and is mostly sold! It’s not locals buying those units.
Stop with the NDP hate! It’s petty hyperbole.

Feel free to correct any factual errors. – Garth

#52 kommykim on 01.17.19 at 6:11 pm

Funny that someone already has bought the domain name:
http://scrapthespeculationtax.ca/

Now scroll to the bottom of that page and see who’s really upset about this. The list says it all.

#53 Millmech on 01.17.19 at 6:16 pm

Waiting for the wineries to go on sale in the Okanangan,so many of them scraping by year to year.
With slowing economy and less cash people cut back to the cheap wines, going to be a grape opportunity to get into the business!

#54 Figmund Sreud on 01.17.19 at 6:22 pm

… Or perhaps it’s just a ruse to raise money.
_________________________________

Of course it is a grand deception! Let’s face it, they truly subscribe to the idea the provincial government will use this money more productively than the multi-house-wealthy: e.g., by funding much-needed infrastructure projects or simply by turning around and giving them through tax credits to low-income households who would immediately spend them, putting them into the local economy with much greater multipliers than, … say, buying one more leisure property still, or maybe even a small private island in the gulf.

Cheers,

F.S. – Calgary, Alberta.

#55 islander on 01.17.19 at 6:24 pm

#20 Paul Allan
“BC has been outed internationally as a jurisdiction that has been absolutely ravaged by dirty money flowing through it – tip to tail. The economy out here has always been geared towards fast, loose and easy money.”

Well said and let’s keep repeating it. Enough of rampant money laundering, real estate speculation and drug trafficking in BC.

https://globalnews.ca/news/4658157/fentanyl-vancouver-real-estate-billion-money-laundering-police-study/

https://globalnews.ca/news/4658158/fentanyl-kingpins-canada-big-circle-boys/

“There are so many players we identified in B.C. But this is all directed from inside China,” an international policing expert said. “At the very top they are insulated. It’s government officials.”

“ Canadians would be stunned to learn how many of Vancouver’s homes have been built on drug money since the 1990s, when heroin from Hong Kong and China started flooding into Vancouver and Toronto”

“the crime network…..is a fluid coalition of hundreds of wealthy criminals in Metro Vancouver, including gangsters, industrialists, financial fugitives and corrupt officials from China.. involved in drug import and production schemes, casino money laundering, real estate money laundering, prostitution, and financial crimes”

I don’t know if the NDP will ever be able to control money laundering in BC.
Where is the federal government in all of this?

God forbid we should vote the Liberal (Socreds) back in power in BC. They turned a blind eye to money laundering and facilitated this disgusting situation for decades. Casinos anyone?

#56 FINALLY on 01.17.19 at 6:29 pm

“But, this is BC. Run by people with an agenda, and thin ethics.”
Perfect description of the former “Lieberal” government in BC.
……………

“To date the NDP anti-house campaign has toppled property values in more affluent neighbourhoods, done nothing to increase the vacancy rate or reduce rents and helped make affordable entry-level homes less affordable. With local real estate markets now suffering serious sales declines and a flood of listings about to hit in the next six weeks, falling equity is a threat to middle-class families, many of whom have put all their net worth into those homes.’

First off, it takes time to change things around….but they are certainly changing.
So, after years of encouraging people not to put all their money into overpriced real estate, you are now concerned that they have not followed your suggestions and are about to feel some pain? What about all those who have followed your advice and are FINALLY seeing a drop in prices. They have potentially missed out on a capital windfall by being so patient. Shouldn’t there have been some concern shown for the prudent saver on the pathway to today?

#57 april on 01.17.19 at 6:31 pm

#17 – Yeah that’s what I’d like to know…. not just “a bit slow” not moving….

#58 Ex-Cowtown on 01.17.19 at 6:33 pm

BC would be a great place to live if it was run by Albertans.

#59 Ronaldo on 01.17.19 at 6:40 pm

”Unique to that troubled province is a government made up of political amateurs, ideologues, socialists, financial illiterates and incompetents.”
——————————————————————
Brings back memories of the early 70’s don’t it?

#60 yvrguy on 01.17.19 at 6:44 pm

best quote I’ve heard on BC… for you Ozark fans:

“You know that Netflix show Ozark, about laundering drug cartel money?” said an expert, who could not be identified because of ongoing investigations in B.C. “I always think that if those characters came up to Vancouver, they could launder all their cash in just one day.”

https://globalnews.ca/news/4658157/fentanyl-vancouver-real-estate-billion-money-laundering-police-study/

Garth, if you haven’t figured it out, part of having people “declare” anything, is to flush these filthy crims out, so RCMP and CRA can cross-reference and build a case.

Go NDP! Go Eby!

#61 EB on 01.17.19 at 6:46 pm

#55 islander on 01.17.19 at 6:24 pm – Surprising exactly nobody who has spent their life here.

But BC has always had a peculiar criminal underside that everyone just shrugs at. This is only the latest chapter in that story.

#62 IHCTD9 on 01.17.19 at 6:52 pm

Some folks take longer than others to learn something new. Some even require a personal crisis before a message can be delivered.

There’s no way this won’t become a mountain range of trouble. It’s just the beginning, just the tip of the iceberg. When this one’s over, a fat slice of BC’ers won’t have a pot to piss in.

This is what you get when you send in government to fix a problem.

Unintended consequences are fast approaching. I’m stocked up on popcorn and headed for the couch.

#63 Chelsea on 01.17.19 at 6:53 pm

Excellent post Garth, as usual. Had to laugh in regards to NDP “ethics”. Have to remember the BC Liberals started this horrific mess with the real estate and economy, like squeeze the hard working woman or man out of every cent they own. The BC NDP have begun cleaning up the Liberal’s mess, and giving back to the citizens of B.C.

Real Estate prices still remain unaffordable in B.C., although some seem to have money lying around to buy a $1+million home. And, yes the seller’s are still in denial of any price reduction, thanks to the sly realtor.

The hype of slagging home sales in just a con job by the Realtor Association, it is much worse. One just has to check the housing prices on any web site, and notice there a quite a few empty homes, not a stick of furniture, why is this? Perhaps, foreclosure? Anyhow, the listing detail doesn’t mentioned if it is a foreclosure.

Open homes, not selling, still listed, and new listings are few at that. Will be an interesting Spring, when a flood of homes are up for sale. And, often they are re-listed at the same prices, unaffordable, then panic sets in……

#64 Fortunate One on 01.17.19 at 6:54 pm

Thank you for the heads up Garth. I just contacted the BC Speculation Office (who knew) and was informed that sometime mid February they will be mailing their Speculation Vacancy Tax Declaration Packages out. Nice, our fabulous tax dollars at work…not.
Thanks again Garth you seductive and irresistible blogger you.

#65 Shawn Allen on 01.17.19 at 7:02 pm

Rate Reset Preferred Share Yields and Prices

#13 Renter’s Revenge! on 01.17.19 at 4:42 pm

asked about my post at 128 yesterday

No kidding. Anyone who bought shares in the last issue (Series 20) must feel like a chump now. They just issued it in September at a yield of 4.75% and a reset spread of 2.59%. The shares are down from $25 to $22.65, with the current yield smartly matching that of the new issue.

Why the sudden increase in spread? Any ideas?

****************************************
Probably many reasons why the market spread rose. Higher available rates on GICs could be one reason. Fear is certainly part of it.

Investors kept getting burned on rate rest preferred so now you have to pay them 5.2% to invest. It is what it is.

As for the TD at 4.75% witha capital loss. Unfortuante but we really need to stop judging ALL investments STRICTLY on capital gains / losses.

If the 4.75% was bought for tax advantaged income it is delivering as promised. There is a good chance it will return to $25 at some point. In any case it will pay its promised yield. In what scenario would this 4.75% issue if kept for 20 years (and resetting at unknown rates) turn out terribly? I suppose it is a terrible investment for those who believe inflation is and will be 5% plus or whatever while the five year Canada stays at 2%.

It’s hard or impossible to predict where the market spread will go. But 3.3% is probably near a record high for rate resets. Chances are you get capital gains from here by buying discounted rate resets. But there is never any guarantee.

#66 Samuel on 01.17.19 at 7:04 pm

So, to avoid the speculation tax, instead I will stay at more Airb&b rentals when getting away instead of owning a second property. Thereby increasing the demand on short term rentals which displace long term tenants and pushes up rents. Makes sense.

#67 ON->AB->BC on 01.17.19 at 7:04 pm

>If you happen to live in Alberta or Ontario and have a BC retreat, the hit is an astonishing 2% annually. The message: don’t come here. You’ll regret it.

Let’s be honest, as a transplant originally from Ontario, who then lived in Alberta, and then BC, British Columbians love to hate on and look down on people not from their province.

Despite tourists pouring millions of dollars in to their province, often in places were natural resource industries and manufacturing have long packed-up and left, “Fuckin’ Albertan Drivers” and the associated “Red Plate Rage” or full on rants about rich transplants from “Out East” and how they’re buying up all the real estate are core values and fundamental aspects of the British Columbian identity and mindset. The BC NDP are doing exactly what their voters want them to and the locals are loving it. If BC ends up shooting itself in the foot over these policies and it hurts British Columbians, they only have themselves and their militant nativism to blame.

#68 AB on 01.17.19 at 7:09 pm

#35 Acdel
We have sold our recreational BC property too. Non residents of BC already pay more taxes, even without the added insult of new “ speculation” taxes. Locals apply for a rebate called a government “ grant” so it just appears the tax bill is even across the board.

#69 Jonathan on 01.17.19 at 7:10 pm

What if I as a speculator/numbered company person that’s leaving my downtown condo empty (or just short-term rentals) choose to ignore the tax bills? I’m not living here in BC I say I never got those bills. Would I then at the time I am selling the condo be forced to give out some of that proceed to CRA? But how will CRA know I’m selling? My realtor rats me out? If CRA finds out after I got my money and goes after me, then it’s same challenge again where I’m not living here and never saw that bill…

Can’t be this easy, can it?

#70 A true pioneer on 01.17.19 at 7:14 pm

Only allowed to own one home per family which is all that is needed for those who buy a house to actually live in – afforded to those who are local and pay local taxes / redistribute money within the local economy?

What a novel concept.

The fear mongering surrounding this and the coming ice age due to house prices dropping is entertaining. This the equivalent of a boomer screaming “Noooo!”

#71 IHCTD9 on 01.17.19 at 7:14 pm

#42 yorkville renter on 01.17.19 at 5:46 pm

The garbage I hear from NDP supporters about “an honest day’s work” ensures I’ll NEVER vote NDP. Ever.
———

I think I’ve heard the same type of assertion:

“an hour’s work is an hour’s work”

as in:

“it doesn’t matter how much gets done, it’s the time put in that counts”

!

#72 Out Of Work CEO, Will Travel on 01.17.19 at 7:15 pm

Ten years ago Kelowna had very sparse rentals and the rents were close to Calgary rents but checking out the rents now show Kelowna is much more pricey than Calgary. Kelowna has a very small economy and with so many newer condos for rent at such big rents …not sure socialism will be the fix. It’s the sort of town where you get a job in retail and it can be your career. You won’t get rich in Kelowna in that scenario.

#73 PastThePeak on 01.17.19 at 7:19 pm

The Commies are out in full force tonight!

Garth, BC’ers have EXACTLY the government they deserve…

#74 Samuel on 01.17.19 at 7:20 pm

Also, every owner on title needs to apply for the exemption separately. So if I help my son or mom buy a house and I am on title then 1 owner would get the exemption and 1 owner would not? How does that work? Or would the second owner need to say it is “rented out”? The cost to administer this mess will be huge.

#75 Dunlop on 01.17.19 at 7:21 pm

Yup, we owned a Vancouver apt. and a townhouse in Penticton. Sold Penticton to cut down to one primary residence in Vancouver. Neighbour contaminated it with mould and forced us to rent while we sued him (CRT) and clawed our way by remediating mould and getting our apt. back. It took two years!
Know what? Vancouver City charged us with empty homes tax because it was empty (mould, remember?). It took 8 months to make them realize we couldn’t reside there. CRT took two years and gave us $2000 costs. Told us no allowance for our rental costs outside our apt. because we could have rented it to someone else while the court case dragged on (apt was polyethylened in with a hole in the firewall). THAT’S WHAT TO EXPECT FROM BC GOV’TS AND LEGAL SYSTEM HERE. YOU JUST GET SCREWED!
(good news it we sold it and now we’re just renters – never again will I own property). We’re done.

#76 acdel on 01.17.19 at 7:22 pm

Off Topic Garth; but just a warning to the dawgs/Felix’s out there as to what is happening specifically in the Toronto region.

https://www.cbc.ca/news/canada/toronto/taxi-fare-scam-debit-1.4981593

#77 Sean on 01.17.19 at 7:24 pm

Did you not know that we (in BC) have had to apply for the primary residence property tax reduction for as long as I can remember?

#78 Heather Hallam on 01.17.19 at 7:26 pm

I assumed my assessed value would go down here in the Okanagan but it didn’t. It went up by about 7%. I contacted the assessment people but I got a very vague answer. Frankly, I think this system is rigged. I thought that for awhile. My sister lives in Westbank and will be affected by this latest tax thing. And she is not savvy on the computer. I will have to make sure it gets done because she might just throw the notice in the garbage. I don’t live in any of the areas that are affected by this tax. Lucky me.

#79 crowdedelevatorfartz on 01.17.19 at 7:26 pm

@#20 Paul Allan

Total agreement.
The NDP may be “dips” but the absolute stench of corruption during the last years of Liberal rule were unbearable.
I held my nose and voted for the NDP.
There was absolutely no way we could have suffered through another 4 years of Christy Clark and the den of thieves that surrounded her.
4 years of Dipper rule to get rid of 20 years of Liberal corruption was the price we have to pay.

#80 saskatoon on 01.17.19 at 7:27 pm

if taxation is morally wrong at one level…it is ALWAYS morally wrong.

to think otherwise is irrational.

the degree of force applied matters not.

#81 David Eby is a Canadian patriot on 01.17.19 at 7:28 pm

He should be the leader of BC or Canada. He believes in rule of law.

I love it when Garth blogs about BC. You see it in the comments. People are well versed on how much criminal activity there is in BC. The brain drain in Vancouver is well underway. The province is a circus.

It is so criminal in BC that P.German who is about to release another watered down report in March (this time on the dirty money in BC real estate) has been found out to have conflict and be in bed with the rats involved in the criminal acts. You want to talk about draining a swamp?

I already voted at the site setup online for a public inquiry and I hope Eby (like he said if people are not satisfied after this latest report due out in a couple of months – because you know it is going to be watered down) will pull the trigger on a public inquiry into the corruption.

The crime in BC is truly staggering and it is this (not dropping home prices) that hurt working families in BC.

#82 palebird on 01.17.19 at 7:29 pm

#59
Unique to that troubled province is a government made up of political amateurs, ideologues, socialists, financial illiterates and incompetents.”
——————————————————————
Brings back memories of the early 70’s don’t it?

Absolutely. If anyone really believes the NDP are going to save them they are completely delusional. How would I know?? Spent quite a few years living in a place ruled by NDP.
BC had been ruled by Social Credit or NDP for 50 years until Gordie Campbell got in (another special guy). Kind of explains the “special” tastes that BC has.

#83 Musty Basement Dweller on 01.17.19 at 7:32 pm

Garth with all due respect you’re sounding like a real drama king regarding the process for speculation tax. Even the global news reporter guy filled it out in 10 minutes. Same process as the empty homes tax, which even my pothead neighbor, who didn’t have his own computer, figured out. For those with nothing to hide it’s a simple 10 minute process, it’s the only way to properly administer it if you examine alternatives. By the way, home prices are coming down here in Vancouver and clearly vacancies are up , these Comrade Horgan policies are actually working. I know socialist policies are like nails on a chalkboard to you but I honestly think the commies are on the right track and things are working. (for some of us)

#84 Figmund Sreud on 01.17.19 at 7:35 pm

#58 Ex-Cowtown on 01.17.19 at 6:33 pm
BC would be a great place to live if it was run by Albertans.
________________________________

You think? I spent about two years in Comox Valley recently – Point Holmes, BC – surrounded by a raft-full of ex. Albertans, … Albertans who mostly have family members who still commute to work in Alberta by YQQ. Every one of them voted NDP – so they said, in the last provincial election! Winner:
https://www.leg.bc.ca/learn-about-us/members/41st-Parliament/Leonard-Ronna-Rae

Best,

F.S.

Best,

F.S. – Calgary, Alberta.

#85 Godth on 01.17.19 at 7:38 pm

#58 Ex-Cowtown
because 40 yrs. of conservative rule really did wonders for alberta. pull your head out of your arse already.

if the government declares a free for all for banks and business criminality you whine, and if they clamp down you whine – if you really got what you want, which a no regulations environment on your ability to profit you’d complain that the river is on fire in front of your mcmansion and the fire department has to come and save you. are you paid up with the private fire department?

#86 Deplorable Dude on 01.17.19 at 7:39 pm

Oh my sides…..

the BOSS literally waits until Pelosi and crying Adam Schitt are on the bus to the airport for a little jollie….and then cancels their military flight…..

Pelosi…..”I’m cancelling the State of the Union Address…what ya gonna do Trump.”

Trump…”Hold my Big Mac”…….

#87 PGer on 01.17.19 at 7:43 pm

I love it when you talk about the BC dippers, Garth. It makes me feel all warm and fuzzy. But don’t worry, the socialists are piling up one failure after another and will soon be gone. Then we can go back to the Liberal Socreds – no middle ground in this wacky province.

#88 acdel on 01.17.19 at 7:43 pm

#62 AB

Well, hopefully you sold because you wanted to not for the fact on how you were treated.

The point that I was trying to make is when my colleagues purchased a cottage or a second home it was never about Provincial politics at the time. It was an opportunity as a Canadian to enjoy the great outdoors and meet fellow Canadians, they became friends, helped each other, supported the community and now we are being told that we are no longer Canadians just Provincial ( )????
This so called country has lost its ways!

Goodnight all!

#89 expat on 01.17.19 at 7:44 pm

Just wait until the rest of the provinces use these methods because you see – governments are broke. Entitlements in the billions and the coffers are emtpy.

All it takes is one communist government to deploy a new revenue stream, then the rest join suit in their own time.

“”Look how well the 2% tax worked in BC we will hear.”” Affordability people!!!!

This is why many wealth creators and hard working people left Canada.

We saw the writing on the wall when the teacher got elected. Many of us who built wealth in Ablerta were wiped out or nearly wiped out the father. We knew what his election meant.

You should have learned when he cried when Castro died. You will learn with the carbon tax what wealth destruction means.

Turn the lights out when you leave please. Assuming you are smart enough to so before all your wealth is stolen.

It’s great out here – get on board

#90 Blacksheep on 01.17.19 at 7:44 pm

Based strictly on current RE ownership in BC, John Horgan’s days are potentially numbered. Sure, this is largely an anti RE blog, so many on here want RE to crash.

But you do not represent the average working stiff.

It’s all in the math.

70% already own RE.

https://www2.gov.bc.ca/gov/content/housing-tenancy/owning-a-home

If RE value declines, start personally affecting said average working stiff’s net worth, it wont matter how much free day care he gives away, Horgan will be tossed out on his ass.

#91 Keith on 01.17.19 at 7:48 pm

Garth the “thin ethics” of the NDP stand like a skyscraper next to those of the B.C. Liberals, and the Socreds before them. You must be familiar with the scandal a week reality of B.C. politics in the last forty years. To criticize the ethics of this government is laughable to any native British Columbian, you have no idea of how politics works out here.

The old Socreds and B.C. Liberals always had anything from a whiff to a stench of corruption, but never seemed to run clean. And the NDP, well far too many of those folks literally could not run a hot dog stand. You don’t live in B.C. for the quality of governance, no matter what party is in power.

#92 crowdedelevatorfartz on 01.17.19 at 7:49 pm

@#127 KLNR
“only folks upset are the ‘VOCAL MINORITY’.”
+++++
Nah , its mostly Men annoyed with the Gillette ad.
Perhaps thats why you dont understand the anger……?

#93 espressobob on 01.17.19 at 7:51 pm

# 9 Spring

Unfortunate loosing John Bogle. The grandaddy of index investing many pros exercise today. It is ironic that so many amateurs think they can produce alpha over the long haul while the vast majority fail.

His investing approach was unique. What a legacy.

#94 Smartalox on 01.17.19 at 7:52 pm

It’s not all bad for those real estate taxes. The super wealthy have ways of avoiding paying these Real Estate taxes.

Look at Meng Wanzhou, Canada’s favourite political prisoner: she’s come up with a way to avoid paying the ’empty house tax’ on her $5.6M home by occupying it while out on bail pending her extradition hearing.

Crafty, that!

#95 Blacksheep on 01.17.19 at 7:55 pm

Horgan also has this to worry about:

https://vancouversun.com/news/politics/recall-campaign-revs-up-against-speaker-darryl-plecas

Plus this:

https://nanaimonewsnow.com/article/606165/nanaimo-homeowners-must-file-declaration-avoid-being-hit-speculation-tax

Which leads to this:

https://vancouversun.com/news/local-news/ndps-speculation-tax-balloons-into-byelection-issue

#96 crowdedelevatorfartz on 01.17.19 at 7:55 pm

@#75 Dunlop
“never again will I own property). We’re done….”
++++
Your only mistake was owning a condo or a townhouse.
God only knows who your neighbors are and what they do in their side of the same building…..

Detached dwelling….. or rent.
Either way is a win win.

#97 canuck2.3d on 01.17.19 at 7:55 pm

#77 Sean – Exactly. Every year property owners here have to fill out their property tax forms and declare their principal residence in order to receive that tax discount. Secondary residences don’t qualify. Why the duplicate requirement. I suppose it would be too efficient to expect otherwise.

#98 Victoria Dave on 01.17.19 at 7:56 pm

You say: “If you happen to live in Alberta or Ontario and have a BC retreat, the hit is an astonishing 2% annually.”

I believe the BC government reduced the spec tax for other Canadians starting this year to 0.5%.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/tax-rates

#99 AACI Home-Dog on 01.17.19 at 8:12 pm

I am with the dog.
Kill the TV.
cheers…

#100 Gondp on 01.17.19 at 8:40 pm

The Liberals were robbing bc blind.. selling Vancouver to foreigners with dirty money. You cant make this stuff up. Everyone here in BC whos not a realtor, mortgage broker, developer, or landlord seem to be happy with ndp measures.. even all the trades guys who are stuck renting at crazy prices.

#101 acdel on 01.17.19 at 8:41 pm

#92 crowdedelevatorfartz

I am a guy, sorry dude, you just do not understand. The Gillette add was perfectly orchestrated to piss off the young guys who would rather grow a beard in which they will continue to do so, sales are down.

Recognizing that it is the ladies out there that do most of the shaving, grocery shopping, etc, KLNR and others are spot on.

It is a brilliant marketing plan and by reading the posts on this blog, it worked! Ladies and gentlemen, stop allowing them to play us against one another. We work better as one.

#102 Nonplused on 01.17.19 at 8:49 pm

Anybody following the Gillette ad controversy? I was, but then it dawned on me. That commercial wasn’t for men. Men don’t buy razors anymore.

Here’s what Wilkinson did years ago:

https://www.youtube.com/watch?v=_9JZWpZS6-g

#103 KLNR on 01.17.19 at 8:57 pm

@#92 crowdedelevatorfartz on 01.17.19 at 7:49 pm
@#127 KLNR
“only folks upset are the ‘VOCAL MINORITY’.”
+++++
Nah , its mostly Men annoyed with the Gillette ad.
Perhaps thats why you dont understand the anger……?
____________________________

lol, if you’re offended by that ad then you are the problem. Judging by most of your commentary on here I’m not surprised. I know you’re an older fella but you come off like a petulant child.

#104 DON on 01.17.19 at 8:58 pm

“It’s just a tax on wealthy people who might own a second home, for business or retreat.”

Yes, this should be allowed if you can prove it for business but and cottage cabin near or on a lake. But we all know that’s not what happened in most of BC. The former BC Liberal Finance Minister owned 9 investment properties. All across the lower mainland and the Chinese Executive has two properties within minutes of each other. Tony Harris the BC Liberal Nanaimo by election candidate is a realtor/developer who said he loved real estate speculation, but removed that statement when the by election was announced. (There is proof). Turns out all his properties are high end but somehow he is going to make things affordable. He doesn’t even build houses to match local incomes, not one. He is free to do what he wants all but lie.

We know they are not going after people that aren’t doing any wrong.

Same method as the CRA, Home buyers grant, empty house tax.

The big deal is being made by corporate media who are in love with realtor/developer ad revenue and will parrot anything the pro developer BC Liberal Party tells it to. Seriously it is that blatant, as blatant as bags of money in BC Casinos.

Listen up @ Not 1st – The BC Liberal Party who ran the Province from 2001 – 2017 are a coalition of Harper Conservatives/Federal Liberals/and BC Socreds – Their name used to be The Social Credit Party and rebranded after scandals in the late 80s. BCs former premier Christy Clark attends federal conservative conventions. It was recently in the news that she had planned to politicize constituency offices to partake in partisan activities to take down the NDP (when they first took power). That is why the current legislative speaker (former BC Liberal MLA) left the BC Liberal Party and sits an an independant and has been chastised by the corporate media and BC Liberal Party. Oh yah the oil and gas lobbyists from Calgary held a fundraising event in Calgary for Christy Clark prior to an election.

And to the poster who asked where we get our weed in BC? ALBERTA! Alberta leads the country in opening the most stores thus far.

As far as prices not coming down yet. My family member is looking to buy in Qualicum/Parksville and is now seeing houses in the 379K range down from the 500-600K+ for the same shotty properties. Things are coming down naturally as affordability is the main variable given our current environment. In the 80’s prices didn’t shoot to the moon like they have recently.

And the HELOC situation doesn’t help anyone, even if the next recession is shallow and short.

People are starting to get it. No real estate chatter like there used to be. Silence. you have 5 senses for a reason…survival.

#105 akashic record on 01.17.19 at 8:59 pm

#92 crowdedelevatorfartz on 01.17.19 at 7:49 pm

@#127 KLNR
“only folks upset are the ‘VOCAL MINORITY’.”
+++++
Nah , its mostly Men annoyed with the Gillette ad.
Perhaps thats why you dont understand the anger……?

Either this, or Gillette targeted the wrong audience with the wrong message for decades.

Maybe both.

#106 Reality is stark on 01.17.19 at 9:03 pm

The losses to the economy due to the negative wealth affect from falling house prices will affect everyone in B.C. forcing the NDP to borrow like drunken sailors.
All NDP governments try to borrow their way to prosperity and it never works. Then they try to resurrect the economy by overpaying government employees which makes things worse.
Their policies are pure insanity. Rewarding mediocrity never works.
Expect much higher property taxes as the NDP will have to extort the money from the only sector left with any value.
The real pain will be felt by the people on the way down.
A lot of 30 and 40 year olds about to learn misery and their children to understand poverty.

#107 Godth on 01.17.19 at 9:07 pm

#89 expat
please become an american citizen and leave us be, you’ve got the lingo down pat: entitlements, communist – good to go. pay for your own health care already, like rand paul. https://www.youtube.com/watch?v=xWV2BnT91M0
a few days ago you had an equally ignorant, unhinged tirade about creeping socialism and i bit my tongue but i’d like you to back that up after 40 yrs. of neoliberal market fundamentalist milton friedman globalization. facts matter. gender neutral toilets don’t.
https://www.ntu.org/foundation/tax-page/how-have-the-top-and-bottom-income-tax-brackets-changed-over-time
https://taxfoundation.org/federal-tax-revenue-source-1934-2018/
https://www.theguardian.com/inequality/2018/jan/22/inequality-gap-widens-as-42-people-hold-same-wealth-as-37bn-poorest
your ideological, ignorant horseshit doesn’t pass a glancing sniff test cowboy. you are where you belong in the usa, stay there please, permanently. i’m sorry our education system let you down so badly. https://www.youtube.com/channel/UCNBG27S1kuMrx0oO19QUMPA/videos

#108 45north on 01.17.19 at 9:09 pm

David Eby is a Canadian patriot:

The crime in BC is truly staggering and it is this (not dropping home prices) that hurt working families in BC.

let’s call the poster Canadian Patriot

Real estate in Canada is not looking good. There’s the stress test and there’s rising interest rates. On top of that, in BC, there’s the Dipper taxes. Canadian Patriot, the poster, didn’t read the intro:

Don’t be surprised real estate’s collapsing in BC. Sales have fallen by 40%. Prices in some hoods are down by a third or more. Realtors are retraining as payday loan guys, trying to improve their image. What lies ahead for markets in Van, the LM, Victoria or the Okanagan could be spectacular.

Canadian patriot doesn’t take real estate statistics in January seriously. Most people don’t. Let’s see what he says in May when sales are down 50%, across the board. Let’s see what he says when prices are down a third, across the board.

I’ll tell you what he says: nothing.

There’s another aspect to this. The banks do take real estate statistics in January seriously. They’re pretty sure, sales are going to be down 50% in May. Prices are going to be down a third. They don’t expect an upswing. Which means if you’re delinquent, they’re going to demand payment. So let’s see what he says when he sees working families wiped out.

I’ll tell you what he says: nothing.

#109 Long-Time Lurker on 01.17.19 at 9:13 pm

https://www.greaterfool.ca/2019/01/17/evil-2/

Evil by Garth Turner
January 17th, 2019

…No doubt the Dippers and their eat-the-rich rabble of supporters will cheer this. But forcing a market collapse in a province where a third of the GDP is real estate-related, where the savings rate is negative because people strained their finances to buy, and families have gambled everything on one asset, is not exactly progressive. Nor will it ever mean the average worker will afford the average house in Vancouver. It just means overall economic collapse, in which the little guy always gets squished….

>The crashing of the BC housing market will be followed by a recession just like it has elsewhere. All you BC housing crash cheerleaders can kiss your jobs and @sses, goodbye.

http://stateofworkingamerica.org/great-recession/

The Great Recession

The Great Recession—which officially lasted from December 2007 to June 2009—began with the bursting of an 8 trillion dollar housing bubble. The resulting loss of wealth led to sharp cutbacks in consumer spending. This loss of consumption, combined with the financial market chaos triggered by the bursting of the bubble, also led to a collapse in business investment. As consumer spending and business investment dried up, massive job loss followed. In 2008 and 2009, the U.S. labor market lost 8.4 million jobs, or 6.1% of all payroll employment. This was the most dramatic employment contraction (by far) of any recession since the Great Depression. By comparison, in the deep recession that began in 1981, job loss was 3.1%, or only about half as severe…

…The job loss during the Great Recession has meant that family incomes have dropped, poverty has risen, and adults as well as children have lost health insurance. The bursting of the housing bubble and the drop in the stock market has meant that family wealth has dropped dramatically, as well….

>Corrupt, incompetent or inane: BC’ers get the government they deserve because they voted for them.

I concur with IHCTD9 on people and the government — and what to do about them.

#110 Basil Fawlty on 01.17.19 at 9:19 pm

If assessments go up, mill rates come down to adjust taxes paid to increases based on the inflation in Municipal operating costs. There will be tax grab.

In addition, this diatribe against the current BC Government completely ignores how real estate prices were pumped to such extreme levels, long before the NDP was elected.

This analysis ignores massive money printing, money laundering and interest rates at the lowest levels in world history. The NDP had nothing to do with this epic incompetence. Yet, they are receiving all the attention here. I have rarely seen such political bias.

#111 Nobel Laureate on 01.17.19 at 9:24 pm

Just let the developers build more properties and all housing shortages will go away. The solution if you can’t “build out” is to “build up”. If Hong Kong and New York can do it so can Vancouver. They are intentionally creating this problem. “They” being the government.

#112 fishman on 01.17.19 at 9:43 pm

Doesn’t matter in B.C. ;commies or capitalists. Back & forth, thats the way we do politics out here. People will never stop coming from everywhere, forever, unstoppable It will be the the most powerful province because it is the most strategic geographic area in North America. One big reservoir. Those big Pacific Lows just keep dumping & filling it up every winter. We got what everyone needs now & forever. Inexhaustible & Renewable.
We go through these cycles with the Dippers because locals want to put up a wall ( metaphorically speaking). They can’t stand the plunder & pillaging. But that too will pass & its back to business as usual.
If your young get out here. Good time to try & make the top team when management is in some disarray. No place for poor old men.

#113 BigAl (Original) on 01.17.19 at 9:52 pm

#71 IHCTD9 on 01.17.19 at 7:14 pm
#42 yorkville renter on 01.17.19 at 5:46 pm

The garbage I hear from NDP supporters about “an honest day’s work” ensures I’ll NEVER vote NDP. Ever.
———

I think I’ve heard the same type of assertion:

“an hour’s work is an hour’s work”

as in:

“it doesn’t matter how much gets done, it’s the time put in that counts”

!
===========
Sort of like when con artist privateers get a billion tax dollars for NOT building a gas plant, or 750 Million for building essentially a normal apartment building that only really cost 30 Million (pan am games), or the stupidity of the 407 hundred year lease, or the Feds gifting a 450 Million contract to megacorp telecom for just changing their web addresses from x.gc.ca to x.canada.ca with the megacorp just subbing out the work for less than 50 Million, or privateer winter road maintenance contractors penny pinching by not salting roads on time, killing some drivers in the process, being fined for it, ignoring and not paying the fine, and then having their contracts renewed. After
all, a contract’s a contract. But Yeah, I get your point about those sleazy lazy-a** everyday folks who I see by the thousands each day get up, get them and their families ready, trudge off to work in cars, trains, buses to “put in time” (your words) only to trudge back home and do it all over again…. I can see how they’re all just conspiring to defraud YOU in their working lives. And how the megacorp execs along with their hookers and yachts are the moral force keeping them honest.

#114 rknusa on 01.17.19 at 9:55 pm

re: But, this is BC. Run by people with an agenda, and scant experience and thin ethics.

any worse really than the previous criminal government run by the Liberals under Clark who allowed BC to be a money launderers and speculators dream squeezing out the middle class in the process

would rather have these guys than the previous admin

#115 DON on 01.17.19 at 9:58 pm

#90 Blacksheep on 01.17.19 at 7:44 pm

Based strictly on current RE ownership in BC, John Horgan’s days are potentially numbered. Sure, this is largely an anti RE blog, so many on here want RE to crash.

But you do not represent the average working stiff.

It’s all in the math.

70% already own RE.

https://www2.gov.bc.ca/gov/content/housing-tenancy/owning-a-home

If RE value declines, start personally affecting said average working stiff’s net worth, it wont matter how much free day care he gives away, Horgan will be tossed out on his ass.
**************

The BC Liberals and their media connections are blowing this up. You won’t be charged the tax if you declare. Or should they just go on the honour system and lets local speculators self declare? BC is in a crisis. (Young friend just got a public sector job, contemplating leaving it as Victoria is unaffordable on his wage.)

This is politics and do you actually think there is no more dirt on the BC Money Laundering Party? They did the same thing with the BC Legislature attacking the ethical speaker. I see an election coming all parties want one. People have been aware of the speculation tax for quite a while now…only ones to revolt were the developers/realtors/brokers and those who owned multiple properties in the same city, town, village for of course retreat purposes.

Yes house prices will go down, hence an early election. Remember this is affecting young families from entering the market and realtors from making commissions. Lots of young people who never voted before will has a reason to vote. New Millennial voters vs. dwindling Boomer generation. And the Millens are more pissed than the boomers.

It’s all about political strategy at this point, we are just the pawns.

BANG all political parties…”well nothing would get done” Perfect! We can vote on projects, policies, and legislation via referendums. Cheaper than corruption.

#116 acdel on 01.17.19 at 10:00 pm

#112 fishman or woman or gender neutral; I am trying to be politically correct; honest!

Facetious I hope; if not, then I have no hope for you!

Hey, I am going back to the Russian blog of the other day/night and going to enjoy a Vodka or two, this is getting too twisted.

No place for this poor old man! :)

#117 ImGonnaBeSick on 01.17.19 at 10:01 pm

#26 I love it when… on 01.17.19 at 5:19 pm
…rich people whine about being asked to pay a little more.

————–

What a comment… Rich people already are the ones that pay for everything you donkey…

#118 yvr_lurker on 01.17.19 at 10:01 pm

Are we on this topic yet again??? I agree completely with #4 Howard. If the liberals had not allowed a free-for-all for 10 years with no oversight of the market, and caring not a whit about vast swaths of the population either being priced out of rentals, or being chortled by outrageous mortgage debt, due to to spiking of house prices, we would not be in the pickle we are in today. I am happy as punch that prices are coming down at all levels (now condos as well), and that these measures have been introduced to make speculation less attractive from both overseas and locals.

They should outright ban the purchase by non-resident aliens of ANY of our housing stock, and close all the loopholes on purchases by numbered companies that seek to skirt the rules.

In a few years from now if the trend continues, we will have a much more balanced market for LOCAL people, and most importantly for the next generation of LOCAL people who can hopefully enjoy the same benefits as we did.

#119 RealDeal on 01.17.19 at 10:01 pm

Funny how no one talks about:
– Quantitative easing – 15 years of near zero interest rates
– immigration (demand)
– Massive exodus of money from oppressed societies – Chinese, Iran in particular in Vancouver
– High Community Amenity Contribution model in Vancouver
– lack of land in lower mainland
– highest property taxes in Canada
– CRA incompetence (they should literally be arrested)

and lastly David Eby and his cohort of Marxists who are dead seat on wealth re-distribution and making homeowners “pay”. The fact that he is targeting Canadians for the folly of past governments and loose monetary policy is a disgrace.

#120 DON on 01.17.19 at 10:08 pm

#37 45north on 01.17.19 at 5:33 pm

But, this is BC. Run by people with an agenda, and scant experience and thin ethics. To date the NDP anti-house campaign has toppled property values in more affluent neighbourhoods, done nothing to increase the vacancy rate or reduce rents and helped make affordable entry-level homes less affordable. With local real estate markets now suffering serious sales declines and a flood of listings about to hit in the next six weeks, falling equity is a threat to middle-class families, many of whom have put all their net worth into those homes.

which reminds me a someone who posted here:

Dog in the Fight

except he’s not

the middle class in British Columbia is going to feel threatened. Some will be wiped out. Along with the Dippers.
*******************

Thank God I am a strategic voter who understands how BC got in such a unmitigated disaster.

WHO allowed this to happen, who encouraged homeowners with a down payment helper. Short memories? Who fired the Casino investigators. Who allowed rampant foreign and local speculation. Who owns multiple properties in the same municipalities.

FFS!

#121 DON on 01.17.19 at 10:12 pm

#14 Chimingin on 01.17.19 at 4:52 pm

I truly hope that the NDP never wins a federal election. The Liberals are bad enough…but this gang is too terrifying to contemplate.
*********************

I am a conservative and even I know the Harper Conservative were not any better or are memories really that short?

#122 Toronto Rocks!!!!!!!! on 01.17.19 at 10:13 pm

The Leafs beat the best team in the NHL and the Raptors win as well!!! Toronto Rocks!!!!!!!!!!!!!! Go crawl back under your rock Toronto hater, you pathetic loser!!!!

#123 Bobby Bittman on 01.17.19 at 10:14 pm

Hey Albertans! Why so glum? I heard prices are down on Sylvan Lake swamp-fronts. There ain’t no more entitled than an Albertan five years ago when oil ruled. Just ask Phoenix residents!

#124 Smelly on 01.17.19 at 10:16 pm

Garth, what is your opinion of the government severely restricting land supply around major cities with their greenbelt? All the developers and builders say most of the housing cost is land cost.

I see why socialism fails, every time the government interferes in the free market it creates havoc.

#125 yvrguy on 01.17.19 at 10:21 pm

One of the 4 methods a government can HOPE to achieve a beautiful deleveraging… according to the master Ray Dalio is, get this…

Wealth Redistribution

I suggest watching the video below.

How The Economic Machine Works by Ray Dalio

https://www.youtube.com/watch?v=PHe0bXAIuk0

I don’t believe Dalio is a comy. All four methods must be used to balance the deleveraging.

Unless you run a billion dollar hedge fund, and have studied and written books on macroeconomic cycles, good luck arguing his position.

#126 Bobby on 01.17.19 at 10:22 pm

I think they should have a tax on idiots. There certainly are enough nut bars at all political levels here on the west coast. Imagine the monies that would be collected.

#127 joblo on 01.17.19 at 10:25 pm

Alberta, gettin screwed by this kinda EVIL.
Rockyfellas, Nutley and Trudope, Butz too?
Researcher exposes money trail behind U.S.-based campaign to kill the oilsands

https://calgaryherald.com/news/local-news/corbella-vivian-krause-should-become-a-household-name-across-canada

#128 Ex-Cowtown on 01.17.19 at 10:25 pm

And I rest my case: Godth is a perfect example of what ails BC; cognitive dissonance, making crap up, mind reading and it all someone else’s fault. Sad… so sad…

All that’s missing is an ad for the Communist Party of Venezuela!!!
+++++++++++++++++++++++++++++++++

#85 Godth on 01.17.19 at 7:38 pm

because 40 yrs. of conservative rule really did wonders for alberta. pull your head out of your arse already.

if the government declares a free for all for banks and business criminality you whine, and if they clamp down you whine – if you really got what you want, which a no regulations environment on your ability to profit you’d complain that the river is on fire in front of your mcmansion and the fire department has to come and save you. are you paid up with the private fire department?

#129 DON on 01.17.19 at 10:28 pm

#35 acdel on 01.17.19 at 5:30 pm

Every single Albertan that I know, have sold or are trying to sell there vacation cottage or home in B.C..

These are people who worked very hard, usually owned the property from 20 to 40 yrs, always involved in community affairs, help grow communities, always partook in helping neighbors, supported the local farmers and communities and for what? To be labeled a criminal or a outsider, what a fricken joke! Comrade and his followers deserve exactly what they get! What a shame!
*************

You do know that many of the traditional vacation property area cabins/cottages on lakes are exempt from the spec tax. For instance, even the Regional District of Nanaimo and the Guld Islands are exempt from the tax which is where the most cabins/cottages are.

But don’t let the facts get in your way. Figure it out! FFS!

My last post

#130 IHCTD9 on 01.17.19 at 10:32 pm

#102 Nonplused on 01.17.19 at 8:49 pm

Here’s what Wilkinson did years ago:

https://www.youtube.com/watch?v=_9JZWpZS6-g
——-

Trim the “hedges” (and “mow the lawn”)!

That leaf blower/statue bit was classic lol!

I have a running joke with a guy at work about “mowing the lawn” (heh) but we’re not really talking about… ah, nevermind it’s 2019.

#131 crowdedelevatorfartz on 01.17.19 at 10:32 pm

@#103 KLNR
“lol, if you’re offended by that ad then you are the problem. Judging by most of your commentary on here I’m not surprised. I know you’re an older fella but you come off like a petulant child.”
+++++

Nah, the ad is like all the other endless male bashing ads pounded out on the MSM.
Gillette’s just poured more money into it’s production…
As for my “petulant childishness” ….it’s my pathetic attempt at recapturing my youth….
And your excuse is…… youthful inexperience?
Or an overly inflated ego…..only your mom knows for sure.

#132 Figure it Out on 01.17.19 at 10:32 pm

You know that classic advice they give to writers: Write what you know.

So what’s with you, Garth? You’ve been writing, on and off, about BC real estate for years. Hundreds of commenters have written thousands of comments trying to explain to you their actual lived experiences in the thick of building, buying, selling and renting BC property. The Globe and Mail and the South China Morning Post have done some great investigative journalism work. Horgan’s doing pretty much what was in the platform he ran on. A plurality of BC voters (including many homeowners) agreed. PEI rebates residents 0.5% of assessed value off their residential property taxes — has done for years. And you keep writing this stuff. “Comrade” Horgan? Puhleez.

If nothing else, a little more respect for the actual, lived experience of many of your BC readers might be nice to see.

#133 DON on 01.17.19 at 10:32 pm

What will people say when the CRA comes a knocking. It will happen as Trudeau needs the revenue. There will be no sympathy from the CRA if you misstated your income or housing investments.

#134 DON on 01.17.19 at 10:38 pm

#54 Figmund Sreud on 01.17.19 at 6:22 pm

… Or perhaps it’s just a ruse to raise money.
_________________________________

Of course it is a grand deception! Let’s face it, they truly subscribe to the idea the provincial government will use this money more productively than the multi-house-wealthy: e.g., by funding much-needed infrastructure projects or simply by turning around and giving them through tax credits to low-income households who would immediately spend them, putting them into the local economy with much greater multipliers than, … say, buying one more leisure property still, or maybe even a small private island in the gulf.

Cheers,

F.S. – Calgary, Alberta.
*****************

LOL. Just like the Alberta Heritage Fund for a rainy day?

Chuckling…sorry couldn’t resist – last last post. ha ha ha

#135 crowdedelevatorfartz on 01.17.19 at 10:41 pm

@#101acdel
Yeah I had thought about the plethora of “bearded Millenial” generation and Gillette’s ad strategy focussing on ……leg shaving wives/mom’s and feminists(thats quite a target audience).
Either way. I really dont care.
I’m sick and tired of the endless male bashing ads from everywhere.
Boycott the product.
Lets see how Gillette’s stock does over the next year or two.

#136 crowdedelevatorfartz on 01.17.19 at 10:44 pm

Speaking of boycotts…….

Where’s FLOP??????????

#137 the Jaguar on 01.17.19 at 10:55 pm

It’s on full display here tonight. Lots of howling about the necessity of these measures due to previous corrupt governments, blah, blah, blah. So why didn’t you do something about it a long time ago? Why did it go on for so long if it was happening right under your noses? Because you’re all morally bankrupt out there. Have been for as long as anyone can remember. Thank god indeed for that mountain range.
Poster #67 ON->AB->BC has it exactly right.

#138 arfmoocat on 01.17.19 at 10:57 pm

Don’t die in Surrey

#139 Yanniel on 01.17.19 at 11:02 pm

It is up to the voters in BC to bring the NDP down. All these taxes and issues can be reversed in no time by a different government.

#140 Puzni on 01.17.19 at 11:03 pm

Hi Garth,

I live in Vancouver, and to hear you describe and have such a strong worded opinion about NDP local government is understandable as you do not live here.
I think you bit misrepresented negative option billing. It started with cable companies that offered free stuff and than charged you when you didn’t cancel after agreed period. Bottom line : there is no line up of realtors returning Audis and Benz anywhere in Vancouver. Although NDP approach isn’t fitfor all models it’s there for longer term, not just overnight feeling.

Currently BC is experiencing a brain drain and its not to the USA. More young people are leaving BC than coming in. Apparently the millennials(at least some of them) learned to see what 500K mortgage will do to their future.

#141 Russian Vodka on 01.17.19 at 11:17 pm

https://www.dailymail.co.uk/news/article-6603399/Bill-Gates-63-photographed-waiting-line-local-Seattle-burger-shop.html

#142 Adrian on 01.17.19 at 11:22 pm

People didn’t buy their second homes with after-tax dollars. They didn’t have to save and defer gratification. Instead, people bought with money borrowed from private banks – and created from thin air as a balance sheet operation – which increased the money supply and inflated prices. Come on, Garth…

#143 Ronaldo on 01.17.19 at 11:22 pm

#111 Nobel Laureate on 01.17.19 at 9:24 pm
Just let the developers build more properties and all housing shortages will go away. The solution if you can’t “build out” is to “build up”. If Hong Kong and New York can do it so can Vancouver. They are intentionally creating this problem. “They” being the government.
————————————————————-

And this is how it’s being done in New York. Imagine an 800 foot tower on a 50 foot lot.
https://blogs.wsj.com/developments/2013/05/22/small-footprints-tall-towers-skinny-condos-take-manhattan/

#144 Al on 01.17.19 at 11:26 pm

Vacancy rate in Victoria is up an astounding 71%!! https://www.timescolonist.com/real-estate/greater-victoria-vacancy-rate-rises-slightly-as-rents-jump-7-5-per-cent-1.23512403.

Pro marketing tip: Use relative percentages to make small absolute changes like huuuge.

#145 Christopher on 01.17.19 at 11:28 pm

I agree that we should also ban foreign ownership here as well,just like New Zealand and Australia.
It is time to level the playing field and ban foreign ownership and allow Canadians to only purchase homes,unless they are newly built.
The next generation has been priced out of their own country.

#146 Barb on 01.17.19 at 11:29 pm

“…government made up of political amateurs, ideologues, socialists, financial illiterates and incompetents.”

—————————————
So like the people that voted the NDP in.

#147 45north on 01.17.19 at 11:32 pm

Basil Fawlty: In addition, this diatribe against the current BC Government completely ignores how real estate prices were pumped to such extreme levels, long before the NDP was elected.
This analysis ignores massive money printing, money laundering and interest rates at the lowest levels in world history. The NDP had nothing to do with this epic incompetence. Yet, they are receiving all the attention here. I have rarely seen such political bias.

Comrade Horgan and his Dippers are big boys, and girls. They could’ve said they’re not responsible for money laundering. They’re not responsible for the lowest interest rates in history which were held there for so long. Nobody stopped them from saying exactly that but what did they say? They said “We are going to save BC with our Dipper Taxes. Dipper Taxes which will save all that is good and pure about British Columbia.”

If you can’t stand the heat stay out of the kitchen

#148 Al on 01.17.19 at 11:37 pm

Abbotsford vacancy rate is up 500% !!!
Vancouver is also up by 11 %
https://www.citynews1130.com/wp-content/blogs.dir/sites/9/2018/11/28/rental-market-reports-abbotsford-68967-2018-a01-en.pdf

https://www.citynews1130.com/2018/11/28/vacancy-rate-rents-metro-vancouver/

#149 VICTORIA TEA PARTY on 01.17.19 at 11:39 pm

#21 YVR…

BC…THE NEXT FLY-OVER “COUNTRY”

Kommissar Johnny H. is riding high right now, on a cloud of left-wing dreams, and therefore may think that things are “all good” here.

Like hell.

This latest speculation tax-twist is another tax outrage and the people of this province will pay…dearly and soon.

“Homeowners”, so-called, are the new “cannon fodder” for this government’s experiment in the current construction of the brand new BC Socialist Utopia.

Of course, any thinking individual will know that exploting British Columbians in yet another chapter of class warfare will bring only tears.

Too bad that we have so many “useful idiots” dwelling here who believe that our “dear leader” either knows what he’s doing (a nightmare) or he doesn’t have a clue (also a nightmare).

Who drives his bus?

Environmental-god Andrew Weaver, of Greenie party fame, who’s still looking for a way into power, or is it a backroom cabal in the premier’s office whispering in his ear?

Over the years I have spoken with some of these NDP players and I’m disappointed but not amazed at the outcomes so far. Naming names is unfair as I’m not tarnishing them all.

This simply is an expression of a general lack of confidence in what one might wish to describe as talents, competencies or, by some miracle, both.

THE OTHER BIG DEAL…

The $40-billion LNG pipeline and processing plant project for northern BC will be the largest private sector project in Canadian history, if it gets off the ground.

Financed by largely offshore money, from various Far East sources, it’s being closely watched by the project’s principals, future customers and debt ratings agencies. In other words the Heavies…are waiting…

If the various tribal rivalries hold up this project for months; if the feds cannot help resolve this dispute in a timely fashion; if the BC government caves into the Greens, who don’t want this line, then it’s potential disaster time here.

Should that happen, BC becomes flyover country for many a long day to come.

My suspicions are that Big American Environmental is financially backing this protest as it has so many others in the past here.

They say they’re trying to save the planet, which is bunk.

They are really trying to sequester our resources for future use by the American Empire.

ANOTHER ISSUE

Meanwhile a UN agency is now bitching about our Site C dam project on the Peace River, saying it violates land claims issues of local indigenous folks. This project is still opposed by the environmentalists and they want a victory here, too.

Will BC eventually lose this project as well?

If so, where will the juice come from to power the electric cars that Kommissar Horgan has mandated will be replacing piston-pounders about 20 years from now.

Careful what you may wish for there you useful idiots.

#150 groovin123 on 01.18.19 at 12:11 am

I’m good with it. What’s happened to Vancouver in the last 20 years is a travesty.

Time to blow-torch some insects.

Let’s get this show on the road.

#151 Ca$h money on 01.18.19 at 12:36 am

The liberal’s had over a decade to cause this mess and yes all our housing issues are the liberal’s fault. It will take the NDP years to fix the damage caused. The rising rents are due to a lack of supply in new builds 5 to 10 years ago. They are NOT caused by any polices made in the last 12 months.

#152 Fat Tony on 01.18.19 at 12:37 am

All socialists are idiots. BC is insane to keep voting for the left. What is the learning curve for figuring out that socialism cannot work.

#153 Victoria Housing Reset Needed on 01.18.19 at 12:41 am

I’m almost speechless. How did housing prices escalate so out of control? I was in a local mall this week and saw a group of 70ish folks looking at the real estate billboard and overheard them talk about how they each paid about $5,000 for their homes in the 70’s and figure its time to sell. They then began talking about how they could not have survived today if they were starting out as young adults in Victoria. The Agent indicated the market was holding steady and a great time to sell and buy as there would be no new interest hikes this year. I couldn’t believe the pitch…just wow!!!That comment got me reflecting on a recent conversation I had with a single Mom who is raising two preteens and renting a townhome at a ridiculously high monthly rent coming to the realization that they will have to move away (out of province)to afford a home. People…Real estate are homes and should not be more than 4C one person’s average annual income. For those who can, invest in a business or the stock market or r&d and stop speculating in the real estate market. A 75 percent drop is in order. The NDP and the largest cohort the Millenials (not the zoomers ,boomers, Gen X…) will fix the situation.

#154 Puzzled on 01.18.19 at 12:56 am

Getting the feeling Canadian’s now cheer the impoverishment of the middle class. That, in itself, is frightening. The NDP is the canary.

We are pooched here in the lower mainland.

#155 Yellow Vest on 01.18.19 at 1:07 am

Nonplused on 01.17.19 at 8:49 pm
Anybody following the Gillette ad controversy? I was, but then it dawned on me. That commercial wasn’t for men. Men don’t buy razors anymore.

Here’s what Wilkinson did years ago:

https://www.youtube.com/watch?v=_9JZWpZS6-g

That commercial gave me an erection.

#156 Home Grant on 01.18.19 at 1:10 am

Are you absolutely sure about your facts?
Please provide a link.
Are you confusing the grant that has been in place for years? In other words when you receive your tax bill you tick off the box that you own the house and you receive a discount on the property taxes, same goes if your over 65 you get a rebate. This has been in place in BC for years. Unless you are referring to something new.
Provide a link please or eat crow.

#157 Damifino on 01.18.19 at 1:32 am

#90 Blacksheep

Sure, this is largely an anti RE blog, so many on here want RE to crash.
———————————–

This blog is not and never has been “anti RE”. In recent years, the host himself has purchased and redeveloped two historical properties. (The Belfountain Store in Ontario, and the old BMO bank in Lunenburg, NS).

This blog is and always has been against the wasting of capital and the assumption of excessive risk on insanely overpriced residential properties in the throes of emotional speculation.

Why is that so hard to understand?

#158 rookie57 on 01.18.19 at 1:55 am

The reality of BC’s situation can be blamed on any number of things. It is getting that “thing” right that I am interested in. I am not too sure that either the NDP or the Liberals get anything right.

For those that want RE to collapse, “Be careful what you wish for”. People spend when they feel wealthy and cut back when things go sour financially. Cut backs on the public’s personal spending will have serious consequences for jobs and economic health. Who will buy RE then? Gov’t finances will also suffer.

#159 Dolce Vita on 01.18.19 at 2:07 am

#83 Musty Basement Dweller

“…you’re sounding like a real drama king regarding the process for speculation tax…even my pothead neighbor, who didn’t have his own computer, figured out.”

THAT was too funny.

You have to love these “Salt of the Earth” observations which have zero statistical sample size validity BUT are, oh, so, entertaining.

You have a cadre of talented comedians that post here regularly Garth, I’d be proud.

Of course the creator of this Blog is no slouch nor shrinking violet himself when it comes to humor; thus, encouraging a like outlook about the vagaries of life from acolytes.

What a Blog!

Buona Mattina.

#160 Stan Brooks on 01.18.19 at 2:10 am

Feel free to correct any factual errors. – Garth

I posted some factual information here yesterday on real rent inflation – in double digits for 17/24 big Canadian cities, 15 % + in GTA on annual bases; it somehow did not make it.

Too much for the poor sheeple to swallow, I guess.

https://ca.finance.yahoo.com/news/rents-rise-double-digits-17-182700505.html

also on the RBC mortgage rate cut, implying we are at the BoC rate top at 1.75 % at the moment and the rates can only go down from here.

With commodities suppressed there is nothing left except housing, they will milk this dead cow for as long as possible.

Also on the topic:

https://ca.finance.yahoo.com/news/canada-rate-hike-conviction-withers-hike-not-seen-141119085–business.html

Inflation is tame in Canada despite a hot job market that is not expected to cool any time soon. Economists are puzzled, as they are elsewhere, as to why the lowest unemployment in more than 40 years is not generating much upward wage pressure.

‘Hot’ job market with minimum wages, people taking on 2nd and 3rd job to pay the mortgage and ‘economists’ wonder why there is no wage inflation?
I don’t. I guess that does not make an ‘economist’.

The same article explains why TSX is and will remain suppressed, no investment money available apparently.

#161 Dolce Vita on 01.18.19 at 2:16 am

#112 fishman

“One big reservoir. Those big Pacific Lows just keep dumping & filling it up every winter. We got what everyone needs now & forever. Inexhaustible & Renewable.”

Obviously, you have never gardened in YVR:

https://www.coquitlam.ca/city-hall/news-media/news-media/2017/05/16/watering-restrictions-in-effect-may-15

https://vancouversun.com/news/local-news/vancouver-introduces-stricter-water-restrictions-on-may-1

#162 Smoking Man on 01.18.19 at 2:17 am

Evil

Evil = SJW

the cowards, the none risk-takers who live in moms basement.
Trained by mind fkd UN teachers who never took a risk, frightened little birds. they get together around bonfires plotting to steal from the risk takers. They have no concept a risk taker will go to the edge and over it giving no fk about consequences.

They are ruled by the word consequences. Me.
Brining it dip shits. I fear no man or God, Hollywood celebs = Losers and a few pedos.

Soros is the head of the beast. His days are numbered.

Dr Somking Man
PhD Herdonomucs

I was diagnosed to be dead 5 years ago. Alcohol and Nicotine are under rated.

Have a happy Davos DM.. Idiot.

#163 jufterzap on 01.18.19 at 3:06 am

#13 Renter’s Revenge! on 01.17.19 at 4:42 pm

#128 Shawn Allen on 01.17.19 at 3:23 pm

New Rate Reset Bank Preferred pay 5.2%”

Can these be bought through an online broker? Do you know what the stock code is or how to find out?

Thx

#164 Axl Rhodes on 01.18.19 at 3:50 am

Bah…. BC will always be special. It’s the only place in Canada with a climate that’s almost bearable if you don’t mind hardly seeing the sun.
I tell all my expat friends from other countries that as soon as they get too much dough to hide all they gots to do is sink it into BC real estate, no worries with full complicity from all levels of the bureaucracy.
Too big to fail, folks.

#165 Happy Days on 01.18.19 at 4:30 am

Dear John Bogle
You were the most ethical man in financial services.
You spoke the truth without regard for the consequences. A rare creature indeed.
Thank you for visiting.
Travel in peace dear Sir!

#166 NEVER GIVE UP on 01.18.19 at 5:09 am

I guess if ESL people cant read the forms then they should also not have to pay income tax. Those forms are much more onerous!.
If I were to buy a rental or a residential property in Japan I would be sure to be on top of all the rules and regs. Ignorance is no excuse.
I agree with New Zealand. If you are not a reasonable resident paying income tax and contributing to the local economy then you should have no stake in our precious land resources.
The biggest squawkers are those that want to keep the bubble alive and their sick overvaluations so they can cash in on the heavily distorted market. All at the expense of our young who cannot afford homes!
I see nothing wrong with the tax. But the better way would be to ban non resident foreign ownership outright.

#167 Ustabe on 01.18.19 at 6:12 am

All you experts pontificating about Gillette or stating that their share prices will plummet, etc. should really look it up before committing to print.

The shares, since the ad, have bounced up and down within a couple of bucks. Overall, YTD, they are up 1%. Looking at historical data, that seems to be where they are at.

Recall all the yelling about Nike and Colin Kaepernik…up, up, up.

As for the BC thing, answer is simple…make BC your principle and hold your second house(s) in Alberta. I did that for years and it worked out very well for me.

Lastly, I identify as an old school conservative…as in Progressive Conservative. As such I no longer have a political party that represents me. But I’ll toss my hat in the ring as one who supports the current government. Are they and will they have missteps? Sure. But if you aren’t making mistakes you aren’t moving. Its how they adjust and modify that will be the pudding. Allowing the criminality of Clark and her lackeys to continue is off the table now and I support that 100%.

BTW, my daffodils are just starting to peek through the mulch. All the woody perennials are budding and my water feature thing hasn’t had a skiff of ice all winter. Soon, very soon I’ll be moving my shorts to the upper drawers and digging out my sandals.

Enjoy your polar vortex.

#168 Steven Rowlandson on 01.18.19 at 7:24 am

“The Dippers, led by Comrade Horgan, have embarked on a campaign to destroy the real estate market because, inherently, they equate property ownership with being rich. And rich is, like, evil.”

It isn’t richness that is evil Garth. Evil is creating conditions of life that require one to be rich in order to live properly and have a family. It is also genocide under article 2 section c and d of the UN genocide convention. This is what real estate profiteering and investment does. It screws over the poor and working class and stops them from living properly and reproducing….. It probably isn’t good for the middle class either or for main street business concerns as there is little or nothing left after taxes, shelter and vehicle costs are dealt with. Food is a may be.
Garth how long can you go without decent pay and the necessities of life? A day, a week, a month, a year, your whole life?

#169 Godth on 01.18.19 at 7:31 am

#128 Ex-Cowtown
how’s the weather in mogadishu? are you sitting by the pool reading the fountainhead again? is that an uzi in your speedos cowboy or are your boots on too tight?

#170 Stan Brooks on 01.18.19 at 7:50 am

It seems the carbon tax is working.

https://globalnews.ca/news/4851800/polar-vortex-ontario-quebec-winter-storm/

Double it and save the planet.
Triple it and save the universe.

#171 Howard on 01.18.19 at 7:55 am

#166 NEVER GIVE UP on 01.18.19 at 5:09 am

If I were to buy a rental or a residential property in Japan I would be sure to be on top of all the rules and regs. Ignorance is no excuse.

——————————————

Excellent point. I wonder if China is sympathetic to foreigners without fluent Mandarin trying to navigate Chinese administrative procedures? Never mind buying property there since, oh yeah, China does not allow RE purchases by foreigners.

#172 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 01.18.19 at 8:01 am

“When telecommunications giant Rogers tried to use negative-option marketing a few years ago, it was slapped down and publicly humiliated. This is the sleaziest of methods to force products onto unsuspecting or inattentive consumers.”

Heehee, and that’s exactly why Toronturds have twice elected former Rogers CEO, John Tory as mayor. He totally bungled the attempted cleanup of that mess, ruining that brand’s reputation. He has still made millions from Rogers. Just like the Make Believes have destroyed sport in Toronto through their incompetence and sucked millions from the pockets of deluded losers.

https://www.thestar.com/opinion/commentary/2014/08/06/three_biggest_blunders_of_john_torys_career_hepburn.html

https://nowtoronto.com/news/john-tory-doesnt-seem-to-understand-conflict-of-interest/

Tells you a lot more about the real character of the GTA and its leaders :(

#173 Remembrancer on 01.18.19 at 8:08 am

#6 Ponzius Pilatus on 01.17.19 at 4:14 pm
Garth,
I’m confused. You’ve always been against owning and investing in cottages.
Now the NDP are acting to discourage people from putting all their eggs into RE, and you’re all worked up.
Wazzup?
————————————————————–
I’d say reading this, he’s more against capricious money grabs based on flawed government agendas and dubious policies aimed at Canadians that already own said cottages, downtown work condos etc. for the purpose of thinly veiled extra revenue extraction out of sheer jealousy which btw does nothing to reduce affordable housing costs…

He never said invest either…

#174 Remembrancer on 01.18.19 at 8:21 am

#20 Paul Allan on 01.17.19 at 5:08 pm
The province needs a wake up call and we finally have it.
————————————————————–
Great, if there needs to be adult supervision and a new sheriff in town then Elliot Ness the crap out of the place with either enforcement of the existing financial laws or using their legislative powers to introduce new laws to clean the illegals mess up. i.e. where are the perp walks of these alleged money launderers or their agents?

Carpet bombing the place with new taxes just puts a price on the poor behavior and hits the legit owners as much. It smells more like get a piece of the action / eat-the-rich envy fueled populism then good order and government…

#175 not 1st on 01.18.19 at 8:30 am

#167 Ustabe on 01.18.19 at 6:12 am

Soon, very soon I’ll be moving my shorts to the upper drawers and digging out my sandals.

——-

Don’t forget to check for mold first. And if you actually do see that a big yellow ball in the sky, that’s called the sun.

#176 Katie P. on 01.18.19 at 8:49 am

Garth, real estate in BC is not in trouble. Real estate goes up and down — mostly up — unless it is being used for rampant flipping, speculation, money laundering or exclusion. These “strategies” are all schemes for sabotaging the free market response to supply and demand. What the NDP has done in BC is to nudge the market back toward “free marketNor should impending retirees be punished for trying to a” conditions, which I thought you, of all people, might consider appropriate. I agree that cottagers and other Canadians who would like to own more than one dwelling because of business travel, impending retirement or family holidays, should not be penalized for this. The BC government needs to refine the regulations to accommodate the difference between normal, non-inflating/inflaming real estate commerce and pernicious dodges and scams that totally disrupt the economics, and leave Canadians bereft of both housing and affordability far out of scale with local economic conditions.
What the approach of the NDP in BC lacks is nuance. Much of this problem could be mitigated by applying the new regulatory landscape to non-resident, foreign buyers of real estate. Only Canadian citizens and legal residents should have an unfettered right to own or trade Canadian real estate. Wealthy or cash-heavy criminal foreign buyers should not have the right to distort, bully, inflame, manipulate or criminally misuse our real estate market to pump wealth out of the country. In the end, the NDP’s measures have cooled the flames a bit, and your un-nuanced, rather panicky “hollerin'” isn’t really helpful to the process. It feels more like arguments for enabling massive inequality, enriching the real estate industry, shifting wealth abroad and encouraging increased homelessness.
Think more, calm down, and maybe come up with some reasonable proposals for bringing the intent of BC’s policy more in line with the effects on the ground. That’s what I will be lobbying for: a message to speculators that we have rules and disincentives for unacceptable hanky-panky with our domestic property economics.

#177 dharma bum on 01.18.19 at 8:52 am

Here is some secretly taped footage of Comrade Horgan and the rest of his henchmen meeting and scheming in the BC legislature.

Really, just a bunch of modern day extortionists.

https://www.youtube.com/watch?v=OdR9sDI9K0g

#178 Renter's Revenge! on 01.18.19 at 9:08 am

#26 I love it when… on 01.17.19 at 5:19 pm

…rich people whine about being asked to pay a little more.

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

Yeah, what’s the problem? It’s just a little more… and then a little more… and then a little more… and then a little more… and then a little more…

#179 dharma bum on 01.18.19 at 9:10 am

#145 Christopher

I agree that we should also ban foreign ownership here as well,just like New Zealand and Australia.
——————————————————————–

Whatever happened to the saying: “It’s a free country.”

Sheesh.

https://idioms.thefreedictionary.com/It%27s+a+free+country!

#180 You can tell it's going to be bad on 01.18.19 at 9:25 am

How’s about a poll of how many dogs have second investment properties. We need to know what we’re up against. The bc tax is going to sting much like a red light jump fine. The only difference is that it is fully predictable, much bigger, on an annual basis and on a dropping asset value for years to come. Most will rent and then realize selling would have been better. By that time values will be half. It should never have got this ugly. The notion that everyone needed to win the re lottery made no sense in the first place. Yay for all the kids that may be able to work hard and afford a home in future.

#181 Last of the Boomers on 01.18.19 at 9:41 am

@#166

Agree with you fully. The people that live and work here in B.C. and are taxed on all of their income must have the ability to establish a stable home in their home province and not be displaced by outside speculators and suspect “placeholders”. Here’s to the current government that has the guts and integrity to try to stop the destruction of those that care the most about our province and it’s contributing people.

#182 Renter's Revenge! on 01.18.19 at 9:53 am

#163 jufterzap on 01.18.19 at 3:06 am
#13 Renter’s Revenge! on 01.17.19 at 4:42 pm
#128 Shawn Allen on 01.17.19 at 3:23 pm

New Rate Reset Bank Preferred pay 5.2%”
Can these be bought through an online broker? Do you know what the stock code is or how to find out?
Thx

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

You can’t buy them yet.

The new issue is Series 22:

http://td.mediaroom.com/2019-01-17-TD-Bank-Group-to-Issue-NVCC-Preferred-Shares

According to the news release, the deal doesn’t close until Jan. 28.

It’s not on their Preferred Shares webpage yet, but the symbol will probably be TD.PF.L (or some letter higher than K in the alphabet):

https://www.td.com/investor-relations/ir-homepage/share-information/preferred-shares/preferred.jsp

#183 Lillooet, BC on 01.18.19 at 10:05 am

Is Garth interested in a road show like this one?
https://kevin.onwealth.com/yt/?mg=MG190218-VANC&LC=GA-SR-RS-build-wealth_ad1&gclid=Cj0KCQiAj4biBRC-ARIsAA4WaFigLeF1FCf0npa_M5w-v13J9gDz5qr7ErCMQFf67CDf2LPVT-FvuB0aAtH2EALw_wcB

Just don’t ask him how to run a mutual fund. – Garth

#184 Lillooet, BC on 01.18.19 at 10:08 am

#136 crowdedelevatorfartz on 01.17.19 at 10:44 pm
Speaking of boycotts…….

Where’s FLOP??????????

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

discouraged by realtors/haters …

#185 SimplyPut7 on 01.18.19 at 10:13 am

I love all the experts who pretend they warned everyone not to spend too much on housing and are now telling people to diversify into equities and pay down debt just as the rest of the payment for the investment condo that is about to be completed is due.

Is too much of your wealth tied up in the housing market?

https://globalnews.ca/news/4844683/housing-market-wealth-investment/

#186 Fish on 01.18.19 at 10:15 am

pretty simple, communicate

then don’t, you use just speak.

OK Roger that, over, done is done.
Authentication done is done 2011-2015 /2016

surprised how things got anyway 2019 / 2020 could a replay,

Mixed messages, and guessing doesn’t work
Example red maybe blue?

Please try to be clear so people understand what Exactly you are trying to say Thankyou

Most definitely in my retirement days it will be what I want

#187 MonsterBox on 01.18.19 at 10:24 am

As a famous economist (Friedrich Hayek) once concluded, artificially low interest rates not only cause investment to be artificially high, but also cause “malinvestment”—too much investment in long-term projects relative to short-term ones, and the boom turns into a bust. Hayek saw the bust as a healthy and necessary readjustment. The way to avoid the busts, he argued, is to avoid the booms that cause them.

I think the property market pretty much sums up what’s been happening. Hang onto your hats, the bust is coming.

#20 Paul Allan and all you B.C. ‘dippers’, perhaps a lesson in liberty would do you some good (‘though I doubt it)

https://www.youtube.com/watch?v=muHg86Mys7I&t=263s

#188 Godth on 01.18.19 at 10:27 am

it’s always fun to be put in a double bind.
free market fundamentalist milton friedman neoliberalism causes an epic capitalism meltdown. the fix is dropping interest rates to record lows causing housing bubbles around the globe in mature economies. complain endlessly that there’s a housing bubble and that governments are causing it, enter a government that’s trying to deflate it and complain about that too.
on top of that by all means fail to recognize it as a systemic failure and instead dump all the responsibility on individuals.
Wolff on Boom Bust: Breaking Down Global Debt Levels
https://www.youtube.com/watch?v=e6-B21KEfdo
Wolff on Boom Bust: Analyzing Expanding Personal Debt
https://www.youtube.com/watch?v=Or27DiwrNf4
madness. complete lunacy.

#189 Fish on 01.18.19 at 10:42 am

I meant to add … for the average family look at the housing, most are Dumps you need the inspection,, rip down start over or rent ,

majority need repair and again inspection Done.

And with legislation of pot it makes it even HARDER to find a location witch you feel comfortable to live,

#190 El Joko on 01.18.19 at 11:01 am

I’ll never understand Garth.

Vancouver property is going crazy for years. He keeps saying it’s overvalued, to wait for the bust.

NDP triggers a bust.

Garth starts insulting NDP, because apparently the market is always right and government always bad?

¯\_(ツ)_/¯

#191 Mattl on 01.18.19 at 11:05 am

Good post. The end result of all these taxes and property devaluation will be consolidation. Small time investors / specs will get killed, the bigger companies and individuals that own multiple properties in cash will gobble up excess inventory. Rich will get richer and it will still be affordable to own in YVR.

There is no putting this cat back in the bag. Homes in Van and the suburbs will decline but what does a home in Port Moody going from 1.5Mm to 1.1Mm really do for the average schlub? Nothing of course, and when you consider any correction will come with tightening of credit, more expensive money and possible a recession who is the real winner?

Everyone loses, and the doomers will still be renting basement suites in North Burnaby listening to the landlord fart in the bathtub upstairs.

#192 crazytown on 01.18.19 at 11:23 am

friend, as always you are on the side of the fat cats. Things are much worse out here than in rural markham where you live and you can still get a house for under 500k.

If someone has multiple properties, they are rich. if someone has one property, they are rich. When houses start at 1million+, by definition, someone who owns a house is a millionaire! and therefor rich.

Don’t like the new rules? sell your “investment” condo and let your renter purchase it for 1/3rd the price you paid. You investors have gambled and lost and now you are wanting us who have to work every day to bail you out? Forget that!

NDP is doing exactly what we wanted. Cracking down on the out of control housing market and finally starting to turn the ship. We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing. I for one, welcome our new eat the rich overloards. The rich are nice and fat and will make a good supper for my starving kids.

One family, one house. This is fairness, sorry you fat cats don’t like equality!!! you might want to ask yourselves why you think having money makes you better than others. Here is a hint, it does not.

#193 lorne sellick on 01.18.19 at 11:29 am

amen

#194 Russ on 01.18.19 at 12:17 pm

Watch Nanaimo.

The little city has been an NDP stronghold since before there was a thing called Huggies (but we still played with our toes). A long-standing MLA named Leonard Krog was dissed by the current NDP thugs and not given a caucus seat. He quit and become the Mayor of Nanaimo, in a landslide.

The B.E. {bi-election (sic)} is at the end of the month and will tell the mood out there.
The Libs (old So-Cred party) and Greens are running candidates with legacy family names. Large car dealerships and past Mayor/R.E. developer.
Poor old Sheila was resurrected from the Feds to help out the NDP. A Hail Mary, so to speak.

Word on the shop floor at the local factories is not favourable to NDP. It different when it’s okay in Vancouver but not in your own back yard eh.

Cheers, R

#195 Smoking Man on 01.18.19 at 12:30 pm

#191 crazytown on 01.18.19 at 11:23 am

friend, as always you are on the side of the fat cats. Things are much worse out here than in rural markham where you live and you can still get a house for under 500k.

If someone has multiple properties, they are rich. if someone has one property, they are rich. When houses start at 1million+, by definition, someone who owns a house is a millionaire! and therefor rich.

Don’t like the new rules? sell your “investment” condo and let your renter purchase it for 1/3rd the price you paid. You investors have gambled and lost and now you are wanting us who have to work every day to bail you out? Forget that!

NDP is doing exactly what we wanted. Cracking down on the out of control housing market and finally starting to turn the ship. We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing. I for one, welcome our new eat the rich overloards. The rich are nice and fat and will make a good supper for my starving kids.

One family, one house. This is fairness, sorry you fat cats don’t like equality!!! you might want to ask yourselves why you think having money makes you better than others. Here is a hint, it does not.
,.., ……….

Whoa! Communism alive and kicking. Got some news for you sunshine.

People get rich by taking risks. Only cowards stay poor and have a fantasy about steeling risk takes loot.

With your mind set you are doomed to life long poverty. Enjoy the crumbs.

#196 Rexx Rock on 01.18.19 at 12:36 pm

Tough measures for tough times.The Liberals did everything under the sun to spike the housing market.The NDP are trying to fix up their mess and its trial by error.Lower income people are getting slaughtered by the high cost of living.
One co worker of mine said he feels like a slave because he has nothing let over to save for retirement.I said you live in the most desirable city in Canada ,what do you expect?

#197 IHCTD9 on 01.18.19 at 12:49 pm

#191 crazytown on 01.18.19 at 11:23 am

We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing.
____

There’s your problem. Political terms aren’t 15 years long in Canada. Your fellow BC’ers obviously loved the Libs and whatever damage they were doing.

All you can do is vote – but think smart before you do it. If your fellow voters won’t do the same – you have 2 choices: 1. Leave 2. Alter your spending habits to reduce your tax remittances – then they can do whatever they want.

We had the same ~15 years of Libs in Ontario, and the damage done can’t be repaired as it is mostly debts/cost increases/taxes – none of which will be going away. When Canadians voted in our current balloon head PM with a majority – I chose #2 within the year.

I could bitch with the hope things will change to suit my tastes, but we all know it won’t. These days I make sure that Canadians could vote a troop of baboons into office – and it still would have little effect on my prospects.

You want a change that provides peace of mind, increased personal wealth, and still sends a strong message? Then look inwards and ignore the rest, make a plan and execute, get slippery and let those who vote without a care pay the bill instead of you.

#198 Ogopogo on 01.18.19 at 12:55 pm

I’ll be brutally honest and go right ahead and say that anything that helps to crash housing in BC is fine in my books. I’ve never been fond of the NDP, but they are now the pin with which to prick this bubble.

Let it crash.

#199 Enjoy the crumbs crazytown on 01.18.19 at 1:15 pm

Smoking Man U could of not said it any better lol

#200 PastThePeak on 01.18.19 at 1:15 pm

#181 Renter’s Revenge! on 01.18.19 at 9:53 am
#163 jufterzap on 01.18.19 at 3:06 am
#13 Renter’s Revenge! on 01.17.19 at 4:42 pm
#128 Shawn Allen on 01.17.19 at 3:23 pm

New Rate Reset Bank Preferred pay 5.2%”
Can these be bought through an online broker? Do you know what the stock code is or how to find out?
Thx

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

You can’t buy them yet. The new issue is Series 22:
….
According to the news release, the deal doesn’t close until Jan. 28.

It’s not on their Preferred Shares webpage yet, but the symbol will probably be TD.PF.L (or some letter higher than K in the alphabet):
++++++++++++++++++++++++++++++++

Why buy a new issue at $25, when there are (or at least were back in Nov/Dec) many better deals for older issues on the market, where are you purchasing at well below $25 (many were down in the $16-$19 range, for rate resets at 2.5% or better).

The yields were well over 6% (which you would have for a few years) for many, and still should be over 5% even if reset at a low level. And you have the downside protection of a loss as they were already well discounted when purchased.

Also to remember – if the new issue is at a high rate, it is far more likely to be called at its reset date, if a new issue could be done at a lower rate (why continue the 3.5% reset, if you can issue new at 2.8%). So you will get that 5.2% for 5 years, but it might not go any further. And if called, and you paid $25, then you get no upside on the capital appreciation.

Garth might not agree, but to me preferreds are better purchased individually in Canada. You can build a diversified portfolio across different industries, with strong companies that are unlikely to ever cut dividends to preferreds, or go bankrupt, and achieve 5.5% or better yields (especially when you grab the sales which come by ever few years…).

#201 jess on 01.18.19 at 1:15 pm

Microsoft Pledges $500 Million for Affordable Housing in Seattle Area …
https://www.nytimes.com/2019/01/…/technology/microsoft-affordable-housing-seattle.ht…
2 days ago – Now Microsoft, arguing that the industry has an interest and responsibility … workers, but also for teachers, firefighters and other middle- and low-income residents. … The loans could go to private or nonprofit developers, or to
https://eig.org/news/what-to-know-u-s-treasury-announces-proposed-guidance-on-opportunity-zones

#202 Mattl on 01.18.19 at 1:18 pm

#142 Adrian on 01.17.19 at 11:22 pm
People didn’t buy their second homes with after-tax dollars. They didn’t have to save and defer gratification. Instead, people bought with money borrowed from private banks – and created from thin air as a balance sheet operation – which increased the money supply and inflated prices. Come on, Garth…

————————————————————–

So much wrong with this. Jealousy much?

You had all the same opportunities other Canadians did to get into RE, and buy multiple homes. If you would have bought a home or two, you would be paying interest on those homes and your payments would be coming from after tax dollars. And HALF of Canadians have NO MORTGAGE. So at least half of Canadians have buckled down and paid off properties – your inability to save and buy a home is not our problem.

You doomer weirdo’s act as if the greatest buying opportunity middle class Canadians will ever see didn’t just pass you by. Now you want everyone else to suffer for your inability to act. Well guess what pal, when the big correction comes you will still be on the sidelines. You aren’t fooling anyone, you are not going to buy a house at 2012 or 2008 prices. You already passed at those prices when borrowing was easy and money was cheap.

That’s the point all the doomers miss – there is no turning back the clock, no scenario where homes in Kits, the Westend or North Van all of a sudden become affordable. The run up was so massive that we would have to have a full on great depression version 2.0 for the “average” family to buy into these places.

I get it, we are realists and moved out of YVR. Should have leveraged everything and bought house in Burnaby in 2010.

Our family income is top 1% and today we are not even close to being able to afford the cities we’d like to live in, without taking on massive debt. Oh well, tough luck, you move on and figure it out. I’d never wish for those that did buy to get crushed. We make our own breaks.

#203 Mattl on 01.18.19 at 1:39 pm

#191 crazytown on 01.18.19 at 11:23 am
friend, as always you are on the side of the fat cats. Things are much worse out here than in rural markham where you live and you can still get a house for under 500k.

If someone has multiple properties, they are rich. if someone has one property, they are rich. When houses start at 1million+, by definition, someone who owns a house is a millionaire! and therefor rich.

Don’t like the new rules? sell your “investment” condo and let your renter purchase it for 1/3rd the price you paid. You investors have gambled and lost and now you are wanting us who have to work every day to bail you out? Forget that!

NDP is doing exactly what we wanted. Cracking down on the out of control housing market and finally starting to turn the ship. We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing. I for one, welcome our new eat the rich overloards. The rich are nice and fat and will make a good supper for my starving kids.

One family, one house. This is fairness, sorry you fat cats don’t like equality!!! you might want to ask yourselves why you think having money makes you better than others. Here is a hint, it does not.

———————————————————

Serious question, what is the end game for a guy like you? Do you really think that you are going to buy your landlords condo at a 70% discount? If a crash like that occurred it would result in economic devastation, are you not worried you’ll lose your job at the mall? I mean you say your kids are starving now, and the economy has been rolling for the past decade, you really think a recession is going to help your situation?

#204 Blacksheep on 01.18.19 at 1:45 pm

Don # 115,

“The BC Liberals and their media connections are blowing this up. You won’t be charged the tax if you declare.”
——————————–
I was pointing out this is Horgan’s problem, specially with a potentially election triggering, Nanaimo by-election looming.

“Yes house prices will go down, hence an early election.”
———————————–
So we agree, good.

“Lots of young people who never voted before will has a reason to vote. New Millennial voters vs. dwindling Boomer generation. And the Millens are more pissed than the boomers.”
———————————
Did you look at the link?

https://www2.gov.bc.ca/gov/content/housing-tenancy/owning-a-home

The math is undisputable. 70% of BC residents currently own RE of some form, meaning other gens beyond Boomers (Gen-x to Mill’s) must also own RE.

This divisive stance of, Millennials VS Boomers on RE, gets eliminated as soon as anyone purchases RE. At that point they ALL just become ‘home owners’ with a common vested interest of paying off their mortgage, while attempting to build equity in what is the biggest financial investment in most peoples lives.

But hey, people can keep waiting for the 50% crash if they like. I have enjoyed the last 5 years of my life in my family home, focusing on making my business more profitable and traveling.

I find myself posting here less all the time as the group think is strong and I’m really not looking to ‘save’ anyone…

#205 Shawn Allen on 01.18.19 at 1:47 pm

How to Buy 5.2% rate reset preferred shares

#163 jufterzap on 01.18.19 at 3:06 am
#13 Renter’s Revenge! on 01.17.19 at 4:42 pm

#128 Shawn Allen on 01.17.19 at 3:23 pm

New Rate Reset Bank Preferred pay 5.2%”

Can these be bought through an online broker? Do you know what the stock code is or how to find out?

Thx

*****************************************
Yes, you can buy in discount broker account.

The TD one was sold yesterday by TD Direct and others and the BMO one was Monday. These two are sold out.

To get new ones register online to get alerts about new issues from your discount broker.

Once these start trading and you can buy like any share but they may no longer yield 5.2% (depends on the price they trade at).

Meanwhile there are lots of bank rate reset preferred shares out there and some probably yield 5.2% or more at their current prices.

To find them maybe the best idea is to look on investor relations website of each bank and look for preferred shares.

Here is the link for TD

https://www.td.com/investor-relations/ir-homepage/share-information/preferred-shares/preferred.jsp

There are 11 issues listed with symbols A through K. And a link to the prospectus. Hopefully a summary page in the prospectus gives what you need.

Let’s look at TD.PF.H

It was issued at 4.85% in August 2016 when the 5 year Canada bond was down around 0.6% so a massive spread of about 4.25%. It will reset at a spread of 4.12%. That would be great since at the current five year that would be about a 6% yield at $25. Problem this is likely to be an above market spread and TD may call them in at $25.

These trade today at $25.26 to yield 4.8%. Given that they might be recalled October 31, 2021 this does not look as good at the recent 5.2% issue. (Unless they let it keep trading and it resets to 6.0% on $25).

Check each of the TD resets and look when they will reset, what their current price is and what would be the yield at reset. This varies a lot depending on the spread and yield they were issued at.

I would look for issues trading down at $20 or lower. Or sign up for alerts about new ones coming out at 5.2% on $25.

If you want to buy a new issue you have to see the alert an act pretty much instantly. They tend to sell out in an hour or so.

#206 jess on 01.18.19 at 2:05 pm

renting out your facebook profile
“Amirrezvani, who works as a security researcher with Novetta, will present an overview of ad laundering at the ShmooCon security conference Friday. He shared some of his findings with BuzzFeed News, which was able to document additional websites, YouTube videos, and message board threads where people are being promised as much as $500 a month to let someone use their Facebook account to run ads.

Some ad launderers even send people a free laptop if they sign up. The laptop comes preinstalled with software that enables the launderers to run ads from the user’s Facebook account, along with potentially engaging in other invasive and risky behavior.”

https://www.buzzfeednews.com/article/craigsilverman/facebook-account-rental-ad-laundering-scam

#207 Stan Brooks on 01.18.19 at 2:17 pm

#201 Mattl on 01.18.19 at 1:18 pm.

What a pathetic thinking. Whoever joins the insanity is a winner, whoever does not is a loser. And there is no coming back, the ship has sailed, the train left the station,… right. You work your behind, knowing that you never will be able to afford a home… Sure.

This is what bankers and corrupt politicians count on. Stupidity. I will enjoy every moment of this economy going down. Because of idiots like you.

You surely will enjoy that RE ownership in an economic wasteland. And the higher property taxes, congratulations. I am voting T2. Hope french villa guy rips open your wallet. Then your pensions fund.

Prices will crash, there is no way around it, but debt will stay. With no economy to support it. Japan declined by 70 %.

As I said countless times: just convert whatever you can in liquid assets and fly/diversify away.

Or live to pay the rent or the mortgage, nothing more.

#208 jess on 01.18.19 at 2:18 pm

Nepal’s Largest-Ever Leaks On Illegal Wealth Shows 55 Nepali Business People Laundered Billions Of Dollars Across Several Countries
Read More..

Centre for Investigative Journalism-Nepal

The International Consortium of Investigative Journalists (ICIJ) leaked the Panama Papers in 2017, exposing how a vast amount of dirty money hidden by offshore companies in tax haven countries is finding its way to various countries as Foreign Direct Investment (FDI).

After the biggest ever leak of secret financial documents, the Centre for Investigative Journalism (CIJ) Nepal began investigating whether Nepal is also receiving suspicious FDI from tax haven countries. Our investigation has revealed how suspicious FDI is being channeled into Nepal’s cement, betel nut and tobacco industries and hospitality sector from tax haven countries

The Nepalis Who Deposited Their Suspicious Wealth in Swiss Banks
Nepali companies are bringing suspicious Foreign Direct Investment from tax haven countries
How Illegal Funds Are Channeled Into Nepal In the Name Of Foreign Direct Investment
How Nepali Companies Have Used FDI To Whitewash Dirty Money
How 55 Nepali Business Elites, Defying Their Country’s Laws, Invested In Offshore Companies

#209 BillyBob on 01.18.19 at 2:24 pm

#191 crazytown on 01.18.19 at 11:23 am
friend, as always you are on the side of the fat cats. Things are much worse out here than in rural markham where you live and you can still get a house for under 500k.

If someone has multiple properties, they are rich. if someone has one property, they are rich. When houses start at 1million+, by definition, someone who owns a house is a millionaire! and therefor rich.

Don’t like the new rules? sell your “investment” condo and let your renter purchase it for 1/3rd the price you paid. You investors have gambled and lost and now you are wanting us who have to work every day to bail you out? Forget that!

NDP is doing exactly what we wanted. Cracking down on the out of control housing market and finally starting to turn the ship. We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing. I for one, welcome our new eat the rich overloards. The rich are nice and fat and will make a good supper for my starving kids.

One family, one house. This is fairness, sorry you fat cats don’t like equality!!! you might want to ask yourselves why you think having money makes you better than others. Here is a hint, it does not.

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

When did the people of the country of my birth become such shrill, bitter, envious simpletons?

I dearly hope that not a lot of non-Canadians read the comments section of this blog. It’s an embarrassment of ignorance and embracing of failed ideologies.

In happier news, very much enjoyed my first NBA game last night, an exhibition game played at the O2 Arena in London. (The real one.)

#210 Stan Brooks on 01.18.19 at 2:25 pm

It was a bubble in 2010

https://www.macrobusiness.com.au/2010/09/canadian-housing-another-debt-fuelled-bubble/

Brace for impact, thin thingy hitting the fan.

#211 PeterfromCalgary on 01.18.19 at 2:57 pm

At least once they ruin their economy they may become more welcoming to the jobs created by building pipelines.

#212 fishman on 01.18.19 at 3:08 pm

Dolce Vita, as a matter of fact I do garden in Vancouver. The top of my building. I have 5 stations, 5 timers set concurrently for 5 minutes twice a day. Thats for the 6 weeks or so in the summer when there’s no rain. This is water from the Capilano Reserve. Chump change.
I’m talking about the Fraser’s 12,000 cubic metres/second coming by our front yard in a spring freshet or the mighty Colombia, which, by the way the treaty runs out on 2024.
Maybe I could give a religious analogy for the secular challenged. If the mountain won’t come to Mohamed; then Mohamed must come to the mountain.

#213 Shawn Allen on 01.18.19 at 3:18 pm

The Alberta Advantage

My latest natural gas bill $147 for a winter month with some real cold spells. Three bedroom house of about 1700 square feet plus a heated sun room with gas stove running a lot. Furnace, gas stove, plus gas fireplace and gas water heater.

Energy cost $32 most at $1.68 per Giga joule. That is $1.68 for one billion joules of energy! I used a total of 20 billion joules in a month! Another $18 for transaction charge based on energy so really $50 fore the gas at $2.50 per billion joules.

Carbon levy $30 (Oh the inhumanity!) My young adult kids will get this back anyhow. Plus if my use of energy is affecting the environment it is fair I pay for that.

Delivery charge $57

Admin charge $4.50

GST $7.02 (Again the inhumanity they charged a tax on on the carbon tax. So what.)

Provincial sales tax: Ah, zero!

Anyhow the point being that this house in Nova Scotia where gas is mostly not available would cost I don’t know $600 or more to heat with fuel oil in winter. That’s probably low.

What would it cost with electricity in Ontario? At least $600 for the heat part plus delivery of those kWh?

The Alberta Advantage is still a real thing.

#214 Lost...but not leased on 01.18.19 at 3:18 pm

Garth:

FYI…re BC Real Estate and assessments

SFH have experienced a DECLINE in assessed value(of course, these valuations were made as of JULY 1 2018.

However, strata etc has experienced double digit assessment increases attributed to the predictable buyers herding into this option. Many of these owners are already stretched and complaining re: property tax increases.

Gonna get interesting…

#215 Shawn Allen on 01.18.19 at 3:22 pm

The Canadian Economy is On the Move

Rail car loadings are up bigly these first two weeks versus the last three years. Intermodal (consumer goods) way up. Petroleum off the chart up. Automotive only slightly down, everything else either up or relatively flat. Sorry doomers.

TSX up…

#216 not 1st on 01.18.19 at 3:31 pm

#202 Mattl on 01.18.19 at 1:39 pm

Serious question, what is the end game for a guy like you?

—-

That’s just the thing. Todays socialists and SJW don’t care about a crash. In fact they want one as payback to everyone else who has what they don’t. Socialists always figure they will get theirs even if it has to be taken from the countrys debt which is happening right now.

Evidence a pipeline project who would have added $15B to Canadas GDP. Slam dunk right?, nope socialists and envirowhackos kill it dead and then beg for handouts.

Its a twisted culture of greed, envy self loathing and destruction all rolled into one. Its Stalin and Lennon (not John) on steroids. And you think Trump is scary.

#217 James on 01.18.19 at 3:31 pm

#194 Smoking Man on 01.18.19 at 12:30 pm
#191 crazytown on 01.18.19 at 11:23 am

friend, as always you are on the side of the fat cats. Things are much worse out here than in rural markham where you live and you can still get a house for under 500k.
If someone has multiple properties, they are rich. if someone has one property, they are rich. When houses start at 1million+, by definition, someone who owns a house is a millionaire! and therefor rich.
Don’t like the new rules? sell your “investment” condo and let your renter purchase it for 1/3rd the price you paid. You investors have gambled and lost and now you are wanting us who have to work every day to bail you out? Forget that!
NDP is doing exactly what we wanted. Cracking down on the out of control housing market and finally starting to turn the ship. We had 15 years of liberal leadership who did jack shit except let prices increase and allow investment in housing. I for one, welcome our new eat the rich overloards. The rich are nice and fat and will make a good supper for my starving kids.
One family, one house. This is fairness, sorry you fat cats don’t like equality!!! you might want to ask yourselves why you think having money makes you better than others. Here is a hint, it does not.
,.., ………………………………………………..

Whoa! Communism alive and kicking. Got some news for you sunshine.
People get rich by taking risks. Only cowards stay poor and have a fantasy about steeling risk takes loot.
With your mind set you are doomed to life long poverty. Enjoy the crumbs.
________________________________________
Words of wisdom from the bottom of the bottle Old Man?
The world is full of different people Old Man.some are risk takers and some not, you for example are one of a kind, just a crusty drunken vengeful mean old man. Jesus your definitely a downer, go and get some Zoloft, Lexapro or Prozac and start to :) for a change.

#218 Blacksheep on 01.18.19 at 3:32 pm

Damifino # 157,
————————
#90 Blacksheep

“Sure, this is largely an anti RE blog, so many on here want RE to crash.”
———————————–
“This blog is not and never has been “anti RE”.

Sorry, I gotta call bull shit on that one. This blog has taken a pretty constant negative view on RE investment because the correction is just around the corner, other than the odd suggestion that this may be an ‘OK’ time to buy if you can adhere to the rule. Garth’s rule of 90 is great advise for those with the capital, but many of us have to pick one or the other, RE ownership or a decent DBP, especially at these elevated prices.
———————————–
“In recent years, the host himself has purchased and redeveloped two historical properties. (The Belfountain Store in Ontario, and the old BMO bank in Lunenburg, NS).”
———————————–
Garth’s a successful dude with the capital / knowledge to invest, but he does not represent the average wealth, of the readership here.

In reality most here are upper middle class working stiffs, like myself. After starting my business, owning a single residence and living well, I simply don’t have the spare funds (or desire) to put 100’s of thousands in a DBP.

#219 frank gruber on 01.18.19 at 3:33 pm

I read the article…and pretty much agreed with every point made….then I clicked on the comments, and the first 10 I read all thrashed the piece….and it reinforced my opinion of this province…..that is the majority of people want free stuff, and screw the consequenses..gimme, gimme gimme…I have no plans to vote again as my candidate (conservative) finished last by thousands of votes…I realize the majority of readers here will cheer that decision….but it is a sad commentary of the way things are to where they were or could be….I suppose we are getting what we deserve :(

#220 n1tro on 01.18.19 at 3:43 pm

#101 acdel on 01.17.19 at 8:41 pm
#92 crowdedelevatorfartz

Recognizing that it is the ladies out there that do most of the shaving, grocery shopping, etc, KLNR and others are spot on.

It is a brilliant marketing plan and by reading the posts on this blog, it worked! Ladies and gentlemen, stop allowing them to play us against one another. We work better as one.
——————————–
Have to disagree on most of the points you mention.

Women may do most of the shaving(?) – really? Women shave more than men? Shaving what? :O

As for women doing most of the shopping, I’m surprised no one got “offended” but let’s assume it is fact, this commercial is not targeting the people doing the buying because if it did, it would have done it in a way to increase sales. A woman who sees how sensitive Gillette is now, isn’t going to increase her man’s razor purchases for the week. Imagine the conversation at home….

Husband: “Why are there 5 box of razors this week?!”
Wife: “Well dear, Gillette just showed me how evil all men can be so I decided to support them to by buying more razors for you.”
Husband: “Go back to the store and return them before I give you the back of me hand!”

LoL. But seriously…the commercial is pure virtue signalling made and approve by people who forgot the 4 Ps of Marketing.

Product – People – Place – Promotion

I’m surprise they didn’t run this ad in Saudi Arabia to screw up the remaining Ps.

#221 Centre-Right? on 01.18.19 at 4:30 pm

Let’s look at the exempt regions for the speculation tax:

Municipalities within the Capital Regional District. This excludes Salt Spring Island, Juan de Fuca Electoral Area, and the Southern Gulf Islands

How nice that comrade Horgan exempted his very own electoral district. So thoughtful.

#222 Chinese Dude on 01.18.19 at 4:39 pm

The Dippers are also in power on the other side of the mountain… LOL…

#223 acdel on 01.18.19 at 5:37 pm

#219 n1tro

Huh, seriously?

It is not about women buying products for men, it is about them buying it for themselves. Last time I heard in my age group guys do not usually shave there legs or armpits or other areas, to each there own.

Enough with the rhetoric, facts are facts and you are just a miserable sh*T!

#224 the Jaguar on 01.18.19 at 9:54 pm

God I love Fishman. O.k., I will bite Obi-Fish-Kanobie:
What happens when the treaty expires? Canada has been maintaining the facilities, etc per the agreement.
Are the Californians coming for our water? ( they could sure use it given the fires and dry agricultural land issues).
What’s next? Assuming no big earthquake hits the lower mainland, of course….