Chaos

After roughly one dog’s age (ten years) of writing this pathetic blog, two things have clarified. (a) The real estate market is broken, and (b) we’re cusping on a political crisis – because of housing.

Look at recent events. The Greens, all leafy and osmotic, just won a federal by-election. The Tory vote stayed the same. Libs and Dippers were tilled into fertilizer. Yes, it was in BC, which is one strange place on the best of days, but this election result is seismic. Like the one in PEI – all red before the recent vote which installed a Con-Green rabble in power. Now the Conservatives nationally are seven points ahead of the Trudeau guys. It’s possible a majority Liberal government will be a one-term wonder – extraordinary in Canadian history. But it’s also possible Liz May’s none-of-the-above movement will see an unprecedented surge. People want change. They have no idea where else to get it.

In Canada real estate is intimately associated with the growing wealth divide, which means it’s political. Check out the comment section most days. The fact average people in major cities cannot afford average houses has created chasms – between owners and renters, moisters and GenXers, Boomer and everybody else. As oft repeated here, governments just make it worse. In BC they’re trying to kill the market with taxes, which will lead to disaster. In Ottawa the latest budget measures subsidize buyers (shared-equity loans, RSP gifts) thereby inflating prices more. Suck & blow.

The biggest divide in the nation is debt. Wealthy people, high-income dudes and 1%ers don’t have much. The other 99% are apparently drowning in it. Mortgages account for two-thirds of the $2+ trillion in household borrowing. Every month we take on more, rather than pay it off. The pile grows, now iced with hundreds of billions in home-equity loans. A quarter of those debtors pay nothing monthly. Are we loan addicts, or is this just a way of enslaving folks?

What’s the solution?

The Bank of Canada’s boss, Stephen Poloz, came out with one a few days ago – longer mortgages. Like, really long. Decades.

As you know, 30-year mortgages have been a fixture in the US, but so has been the ability to deduct mortgage interest from taxable income. Borrowers can refinance whenever rates fall, dropping their payments, but are protected during times of increases. The situation in Canada is different, since the Interest Act makes all mortgages open after five years. Lenders’ costs fluctuate, since they use five-year GICs to finance fixed-rate mortgages, and are heavily influenced by the five-year government bond yield.

Meanwhile the average time people have a mortgage before they move or renegotiate is less than four years. So the penalty to break a ten or 20-year mortgage would be prohibitive. Plus, longer loans cost more, and given the fact we’re already picked in debt, would many people opt for a higher rate now in return for more certainty in a decade or two?

Nah. Unlikely. The idea of a ‘forever house’ is largely kaput. That’s why almost nobody opts for existing 10-year terms, though the rate premium over five-year loans is slim. So unless there’s a real carrot in here somewhere – like exempting people from the stress test if they agree to a mortgage lasting their entire adulthood – fugedaboutit. Besides, is diddling with debt really the way out of this mess?

That was the idea behind the Trudeau gang’s shared-equity mortgage, due to come into effect this autumn. The feds will take on up to 10% of a loan, reducing monthly payments, but also seize a stake in your home equity (and any capital gains). Poloz said last week this is a good idea. He’s also in favour of the securitizing private mortgages. You know – the process which helped create the US  financial crisis with mortgage-backed securities, credit default swaps and steaming piles of toxic assets. Great thinking, SP.

If this seems a bit tinged with desperation, well, you get it. Governments of all stripes plus agencies like CMHC, the central bank and the financial regulator, OSFI, are making it up as they go along. There’s a patchwork of policies now in place, often working against each other. Meanwhile we have a demographic time bomb in place, with millions of Boomers about to retire with houses they can’t afford to discount and an equal number of moisters craving homes they can’t afford to buy.

This is a recipe for political change and relative chaos. Count on inexperienced leaders trying to ‘fix’ this with the blunt instrument of tax. Once the kids get the keys to the Camaro, in other words, everything changes.

I’m sticking with this advice: live quietly among the masses.

About the picture

Loukanikos the stray dog turned into a canine national hero in Greece during the IMF austerity riots of 2011, leading protest marches, nipping the cops, dodging tear gas and rubber bullets and flaunting his iconoclasm. He died of a heart attack, but lives on as a symbol of social justice. Or, he just dug a fight.

169 comments ↓

#1 domain on 05.08.19 at 3:39 pm

One solution hasn’t been discussed.

End the CMHC program. Make banks and their investors risk their own capital without a taxpayer backstop, and you would see the supply of credit normalize.

At a minimum, the banks would be forced to do their due diligence when lending if their capital is actually at risk.

If you take an attractive activity, and remove any risk that it poses to the participants, you get caution free participation and all of the unintended consequences that come with it. Think orgy – the debt kind…

#2 Red falcon on 05.08.19 at 3:42 pm

Oh ya… dogs and cats!!!
And first!!!!

#3 Sideshow Rob on 05.08.19 at 3:56 pm

“live quietly among the masses”
Wise words to live by. The tallest nail is going to get the hammer in the near future.

#4 Carlos on 05.08.19 at 4:12 pm

“live quietly among the masses”
That is the way to survive a dictatorship, I used to do that in Cuba.
Are you saying that is the new way to survive in Canada?
I am very afraid of the left…

#5 HanMan3000 on 05.08.19 at 4:14 pm

Greetings, blog dogs: April housing market statistics are now up at https://TorontoRealEstateCharts.com

#6 Tater on 05.08.19 at 4:17 pm

There’s also a business that seems to be getting in to the shared equity space: https://app.lendl.co/about

Blog dogs should love it.

#7 jane24 on 05.08.19 at 4:23 pm

Well Garth you were right the CRA are indeed leaving no stone unturned in chasing tax possibilities. I left Canada 25 years ago for the UK but maintained my RSSPs and Cdn bank accounts. These banks have had zero interest in me for 27 years. They knew I lived in the UK, they have always had my address and post my statements out to me. I visit my branches and say hi to them if I am in Canada.

In the last 3 weeks they have ALL sent me documents asking me to certify that I am not in Canada and that I am not an American. Then they ALL ask me what country I am a resident of, what my personal tax number is in that country and photo proof that I am a resident there by sending them a photocopy of my passport or driving license!!!

I have obliged but Why??

I have nothing to hide but I bet a lot of other non-residents do. Thank the Lord I sold all my RE when I immigrated and interest rates rates are so pathetic that they have nothing to claim on there.

#8 Robert Ash on 05.08.19 at 4:24 pm

Our Leaders are Bi polar..

#9 Chilly Shivers on 05.08.19 at 4:27 pm

Right on all counts, and here’s another piece of the puzzle.

https://www.bnnbloomberg.ca/homeownership-party-ultimately-comes-to-an-end-cmhc-ceo-warns-1.1255808

CHMC Head musing on private ownership of Canadian household debt by independent investors, whomever the investors will be? For sure it will be a consortium of mostly foreign financial institutions. This is way beyond THE Big Five’s ability to cover.

Privatization of the national debt makes certain that Canada loses it’s sovereignty forever. Who is this guy speaking to? Who is he speaking for?

A guy like this doesn’t just make this crap up, he’s either free-basing or his trial balloon comes from the likes of that globalist secret service cabal Gerald Butts has been discovered working for behind the scenes while feather dusting Trudeau’s behind while in the PMO. Ex-PM hopeful Micheal Ignatieff a George Soros employee in Hungary! The death of a free press and censorship of free speech by internet babies. Book burnings, art ravaged by leftists on college campuses. HUGE Ramifications and not likely spontaneous !!

This makes the Machiavellian machinations of Canada’s last ‘Doctor Evil’, Maurice Strong look like an unorganized bag man.

#10 Big Bucks on 05.08.19 at 4:29 pm

Rumour has it a wealth tax is coming.1/2 of one per cent doesn’t sound like much but on a million dollar home that’s $5000 a year.I guess reverse mortgages will become even more popular as another $400 a month will sting.Thank Justin for the debt situation as all the freebies will come due very shortly.

#11 Kenny H on 05.08.19 at 4:32 pm

Saddest thing is that many think that things got so messed because of their mistaken perception of how free market economics work, blaming the failings of this racketeering-based system on”capitalism”. When one looks at all the problems alluded to in this article, every single factor is caused by government intervention (with lots of help from central banks).

#12 mitzerboyakaQueencitykidd on 05.08.19 at 4:34 pm

Dogs are great
beer is good
people are crazy
Love is Love
hate is hate

#13 Hawk on 05.08.19 at 4:36 pm

I have an idea…….let’s vote for more government, to solve our problems. More taxes, more regulations!

Since the beginning of time, government intervention has always yielded superior results than free markets.

Let’s accelerate the re-distribution, till one day we can can explore trash cans for scraps of food and re-distribute scraps of toilet paper like the Venezuelans do (all the while having the single largest oil reserves in the world).

Like the true player, let’s put our chips “all in” on the next performing primate the people in their infinite wisdom choose to “save us”.

#14 js on 05.08.19 at 4:42 pm

Just let the market FALL! When it falls enough things are gonna be fine again! Jesus, is that so hard?

Not hard. Not smart. – Garth

#15 Damifino on 05.08.19 at 4:44 pm

The Bank of Canada’s boss, Stephen Poloz, came out with one a few days ago – longer mortgages. Like, really long. Decades.
————————————

But isn’t that just the same thing as rent?

#16 Keith on 05.08.19 at 4:45 pm

It’s continuing to trend in favor of Scheer and the Conservatives. The Conservatives have the most loyal core of voters in Canada. If the Liberals, Greens and NDP wind up in a meaningful three way split, the Conservatives can be in a majority with a popular vote share in the high thirties.

People are starting to ask Scheer about specifics, but Ford didn’t even provide a platform in the last Ontario election. Scheer is taking the course of saying as little as possible. Sound political strategy, but the voter may get a lot more (or less) than they bargain for.

I greatly fear the return of massive deficits. Federal Tories are long on tax cuts, they struggle with the necessary spending cuts needed to balance the books. An early recession will not dissuade them from the tax cuts their supporters demand, and history is not on the side of those who expect them to make meaningful spending cuts and reduce the size of government.

For the first time in my life, I am hoping for a minority government. It means they will do less than they want, which may be the best course for Canadians.

#17 Vancourerite on 05.08.19 at 4:45 pm

If the boomers have not saved enough, too bad. This is the luckiest generation in history. All the NDP taxes are justified, especially the spec tax on saytelite families. Read Ian Young’s opinion on what sattelite families pay in income tax.

If people don’t earn much income here, why should they pay income tax? BCers owning property in Arizona don’t pay income tax to the IRS. – Garth

#18 js on 05.08.19 at 4:47 pm

OH, THE BIG DISCONNECT BETWEEN PRICES AND INCOMES IN THE LOCAL MARKET! I KNOW PEOPLE MAKING 30-40K/YEAR OWNING 3-4 PROPERTIES FINANCED OFF EACH OTHER AS THE MARKET WAS APPRECIATING. NOW COMES THE DOMINO EFFECT ON THE WAY DOWN!

#19 HoweStreet.com on 05.08.19 at 4:55 pm

Ross Kay on HoweStreet.com Radio:
Bank of Canada Poloz Misreads Housing Market.
First Time Buyers Frozen in Time.

https://www.howestreet.com/2019/05/07/bank-of-canada-poloz-misreads-housing-market/

#20 The Wet One on 05.08.19 at 5:00 pm

So, what should we do?

Full on free market in real estate with no government interference?

I could work with that.

Sure we’d end up with the colossal disaster that was 2009, but Canada’s a smaller player and we won’t take down the whole world with us when it goes kaboom. Government interference didn’t save us from “kaboom,” it just slowed down the explosion.

So whatevs.

In short, I got nothing.

But then, I can afford to buy my home, so whatevs. And I’m not moving.

I hope I’m fine. If not, there’s always the silver bullet solution.

:-)

#21 Vancourerite on 05.08.19 at 5:00 pm

If you use our social services, like health care and education, you should pay taxes on your world wide income. Polls show the spec tax has wide support in BC

Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth

#22 Ustabe on 05.08.19 at 5:05 pm

A 30 year mortgage can be your ticket out of house payments way, way sooner….if you negotiate a couple of terms and conditions and set up and maintain a simple repayment schedule.

Our accountant showed us the method years ago when my partner and I were accumulating rental housing stock in Calgary. Loved it when Harper punched amorts way out there, re-mortgaged everything as far out as ATB would allow us to.

Long amortization is the only key: steady rate, rising rate, dropping rate doesn’t matter much at all.

Works even better if you have equity and durable other debt.

Its the heart of Manulife’s ManuOne program, Investors has (hidden way deep) something similar so its not voodoo. Simple math really but concentrating on the steak, not the sizzle.

But I forget, no one here uses the services of paid financial professionals so…carry on I suppose.

#23 New Voter on 05.08.19 at 5:05 pm

You’re not kidding about voters being upset. Local UK elections saw the main parties get trashed while voters went for the fringes. EU elections shorlty, wife is voting for the grey panthers. She’s retiring soon and is face a big tax hit due to a quirk in law regarding healthcare.

Screw the grandkids, that’s our mantra.

Oh and 15 years since I last voted we both get to vote again. Normally a ticket conservative voter this electI’m really struggling! Hate Justin, Sheer, oh god what a loser!

#24 Blacksheep on 05.08.19 at 5:11 pm

“After roughly one dog’s age (ten years) of writing this pathetic blog, two things have clarified. (a) The real estate market is broken, and (b) we’re cusping on a political crisis – because of housing.”
——————————–
The housing debacle and political upheaval are the symptoms, but the lack of gainful employment in the west, is the disease.

Unfettered global free trade, a 2 billion strong ultra low cost labour force added in the past 25 years, simple automation / technological shift and now the final nail in the coffin, Global Carbon Tax scam making the West yet ever more uncompetitive.

Take all of the above and remember its been driven buy a 75 year debt super cycle that reached saturation in 2008, but the system absolutely refused to let it reset, meaning shit global growth as things are generally stuck in the mud. Rates were reduced to negative real costs (still are) in an attempt to keep this economic pig airborne, letting loose money distort all sorts of asset values from RE to the markets.

We are now openly discussing ideas that would have been considered laughable pre GFC: A New Green Deal, MMT, Basic Income for the masses and I’ve even read the phrase ‘Debt Jubilee’ from a few different sources now.

Sir James Goldsmith, lays it out in this Charlie Rose Interview.

Any person or system involved in its implementation that claims they did not know the consequences of what global free trade would bring for the West, was a liar, as there was people ringing alarm bells at the time evidenced by this 1994 video below…

https://www.youtube.com/watch?v=wwmOkaKh3-s&t=182s

#25 dave on 05.08.19 at 5:11 pm

I live in the Nanaimo Ladysmith riding. Some interesting numbers from last nights news. Only 41% of us voted. Libs & ndp were down 14000 votes each from last election. Cons down 6000 from last election. Greenies up 1000 from last election. Libs ndp and cons stayed home and greenies got out a handful more voters than last time.We voted but easy to see why so many didn’t with an election in Oct. Hardly a huge swing to the greenies

#26 PeterfromCalgary on 05.08.19 at 5:14 pm

If Trudeau loses the election Canada will be much better off. But if he loses it will because of SNC-Lavalin, Mark Norman and free vacations and other sleazy behavior. It is not because of housing.

#27 Captain Uppa on 05.08.19 at 5:18 pm

“… live quietly among the masses”

Garth, what does that mean exactly?

#28 Bigriders Nonno on 05.08.19 at 5:18 pm

Way too mucha talk abouta da price ofada houses and which way dey gonna go. Ifa you cannot figure outta by now after so many years and after so many people from everywhere ina da world coma here den Nonno feela sorry for you.

Da people in Canada lova da housa so much whether they go Uppa(most ofa da time) or downa ( just for now) dat it is as sure as the chicoria gonna grow ina da pesticide free lawns of Ontario dat a the price, well she’sa gonna go back uppa Uppa Uppa !

And nobody listen to my stupido grandson Bigrider, he no buy no land , no house and he know nutting . He keep a tella me “but nonno you no understand about da many stocks lika Shopify ” . I tella him go away “Ma che fai”.

#29 AGuyInVancouver on 05.08.19 at 5:22 pm

Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth
_ _ _
Garth Turner, tirelessly championing the “students and housewives” who rack up speeding tickets in their $400k McClarens by comparing them to working Canadians living just above the poverty level.

Thanks for clarifying. Your issue is envy. – Garth

#30 IHCTD9 on 05.08.19 at 5:29 pm

#197 Remembrancer on 05.08.19 at 3:56 pm
#183 IHCTD9 on 05.08.19 at 11:52 am

If you really want something to worry you, forget about immigration bugaboos and chew on what population levels are required to sustain an advanced technological civilization period, full stop. i.e. newer innovations like microprocessor design and fab plants, nuclear power station care and feeding, mining and other resource extraction, or even large scale farming etc etc etc. Not everyone can be a nuclear physicist nor a brain surgeon nor an agrologist despite how needed – hell, ask yourself at what population level do you lose all the tractor factories / spares and diesel refining and revert to pre-19th century subsistence farming? Taxes would be the least of your problems
——

I have thought, and think about this quite a bit. So far, I’m thinking the fundamental trouble starts when you start running low on youth. Technical innovation and progress of all kinds invariably comes from folks who aren’t 10 years from retirement. They’ve got the big dreams with a side of spit and vinegar. So even if the absolute population dithers around the same number, as soon as your society has way more wrinklies than kids, the trouble starts. All kinds of trouble.

I also think that population could drop some with no adverse effects, as long as technology and natural resources keep improving.

Finally, I also think we’re just throwing our best guess as to what we need in the future, who knows what tomorrow may bring.

#31 Bob Dog on 05.08.19 at 5:30 pm

Eliminate CMHC and the problem is solved. CMHC was created to help WWI soldiers form a family, NOT to help migrants with no money speculate on real estate.

Lets face it. Banker are terrorists. They have done more damage to young Canadian families than ISIS or Al-Qaeda could ever dream of.

#32 cramar on 05.08.19 at 5:31 pm

“I’m sticking with this advice: live quietly among the masses.”

I like this! The gist of Stanley’s 1996 book, “The Millionaire Next Door.” Just as valid today. Live quietly among those pickled in debt.

#33 Bob on 05.08.19 at 5:34 pm

“I’m sticking with this advice: live quietly among the masses.”

In the future Canada…so very true.

#34 Oakville Sucks on 05.08.19 at 5:40 pm

Liberals are gifting $250,000,000 to the Chinese bank…ARE THEY OUT OF THEIR F#@!%$# MINDS ????

#35 sideline sitter on 05.08.19 at 5:41 pm

3 points

1) I’ve voted Green before… yes, they hug trees but their policies are right of the Dippers

2) Trudeau was the 3rd place party when the election came around and no one expected the Libs to win (much less a majority!) so they’re already batting way over 500

3) Rich and anonymous is the best way to live. Period.

#36 Marco on 05.08.19 at 5:43 pm

with millions of Boomers about to retire with houses they can’t afford to discount

And how come this? Greed is god? Allways.
And when finally Boomers will retire? I think, never.

#37 PeterfromCalgary on 05.08.19 at 5:44 pm

“Fortunately Vice Admiral Norman didn’t fire the females he hired.”

https://www.facebook.com/CanadaProud.org/videos/2131208283593116/

#38 Bobby Bittman on 05.08.19 at 5:46 pm

“Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense.”

NOT a most respectful interpretation. Dog whistles much?

#39 Guy in Calgary on 05.08.19 at 5:49 pm

Seems to me the problem is that everyone cares way too much about what other people do. Live and let live. Can’t cut it where you are then move. Don’t want to move that’s fine, the don’t complain about the consequences of your own choices.

Want to sacrifice everything for a house? Go for it. Want to rent and invest? Go for it. Balance the two? Go for it. Can’t do either because of low income but refuse to make a drastic life change such as moving/school to make these things possible. That is all on you.

People are quick to forget just how good we have it here. That used to annoy me but now I just don’t care. The universe will give you what you project into it. Sounds corny, but it is true. Attitude is everything.

GO RAPTORS

#40 Bonhomme Carnaval on 05.08.19 at 5:50 pm

In the age of Google Maps / World, I still cannot believe most people have never looked at Canada from space.

Canada : population 37,314,442 (38th), land mass 9,984,670 sq. km, thus 3.92 persons/sq. km (228th).

Yet housing is among the most expensive in the world.

No leadership, no vision in Canada.

Implement ‘The Big Move’ in Toronto, and watch prices melt to normal levels.

Mass (electric & efficient) transit, New Urbanism (making the burbs & exos livable), toll highways and bridges (Fed. or provincially owned, but pay-to-use).

But, that would bring lower housing prices, thus lower profits for developers (and political party contributions).

I’ve said this many time before in the comments section : GET OUT OF MAJOR URBAN CENTERS.

#41 Dazed and CONfused on 05.08.19 at 6:06 pm

“……Governments of all stripes plus agencies like CMHC, the central bank and the financial regulator, OSFI, are making it up as they go along…….”
_____________________________________

Hardly. These agencies are blindly following what the Canadian Bankers Association and the Canadian Real Estate Association are lobbying them to do.

“……The CBA is one of Canada’s oldest associations with a long history of participating in the formation of public policy that contributes to a sound, thriving banking system….” – CBA Website

“…..CREA represents the interests of its members to the federal government and its agencies on existing or proposed legislation that will affect those members, and/or impact home ownership……” – CREA website

Never underestimate the power of both CBA and CREA federal lobbyists to advance their own interests ahead of the interests of the average financially illiterate working Canadian.

#42 MF on 05.08.19 at 6:16 pm

As a few others have pointed out, get rid of the CMHC. It is the reason why banks are ready to lend so much, and why our house prices are so high. It’s a useless anachronism from a bygone era and needs to go.

#24 Blacksheep on 05.08.19 at 5:11 pm

Alarm bells may have been ringing, but free trade and globalization was (and still is) the future. It’s unstoppable and its origins go back hundreds of years. Best idea is to embrace it and adapt (multiple sources of income, constant retraining, constantly improving etc.). Basically diversify your skills like you diversify your portfolio.

MF

#43 SunShowers on 05.08.19 at 6:17 pm

Regarding #17 and #21…I’m definitely not on board with xenophobia, but it almost looks to me like an argument for nationality based taxation like the USA has.

My father is a US citizen, born in Chicago and moved to Canada for work 40 years ago. He hasn’t lived or worked a day in the USA since then, and has since become a Canadian citizen.

Even so, he still needs to file income tax with the IRS every year, send an additional form to the US Treasury Department, and if he makes a bundle in Canada (selling his home, for instance), Uncle Sam is going to want a cut. In 2010, the USA strong-armed Canadian banks into reporting the finances of US citizens, or else they would be cut off from US dollars, so he can’t hide it.

Unless he pays over $2000 to renounce his US citizenship, that is. If he were a 1%er, he’d need to pay even more.

Given the “borderless” state of capital flow, this may be a good idea. Maybe not for average joes buying and selling principal residences abroad, but for people who hide cash overseas…I would be on board with that.

#44 david on 05.08.19 at 6:22 pm

boomers can’t afford to discount, and moisters can’t afford to buy. sounds like a standard market aiming for a market solution, no? good o’l mister market will decide how much and at what price…

#45 Penny Henny on 05.08.19 at 6:24 pm

From yesterday, my apologies…
“This pathetic blog asked a regular visitor – Dolce Vita – to answer such questions as a Canadian living there. His treatise is below. But, first, here’s the view from near his doorway, taken earlier today…”

Dolce is a guy? I always thought he was a chick.
Weird

#46 Tom Berrington on 05.08.19 at 6:24 pm

I bought 7 houses back in 2010 and they have now appreciated 58% since then. I have only 25% for each or $125,000 left on each house to pay off . They are all worth around $500,000 each now.

The rent is paying for 75% of all mortgage, utility, property taxes etc. so that is good. I am just sold 3 houses last week and yesterday getting $1.445 million net after all expenses.

The mortgages of $875,000 remaining mortgages will be paid off soon and $570,000 net in my pocket. I will be debt free with 4 houses worth $2 million and getting , $84,000 a year in rent with solid long term leases.

This $570,000 profit will give me 4%+ dividends a year so another $1,900 to $2,000 a month in income sitting doing squat.

I retired from my job back in 2015 and did not look back. Retirement looks sweet with no debt and about $9,000 a month for doing a few hours a week of maintaining my lifestyle.

#47 IM in C on 05.08.19 at 6:36 pm

The peak of the baby boomers are now 66, with the leading edge now in their early 70’s. It will be very interesting to see how the market plays out over the next 15 – 20 years.

#48 The Real Mark on 05.08.19 at 6:44 pm

“#1 domain on 05.08.19 at 3:39 pm
One solution hasn’t been discussed.
End the CMHC program.”

Agreed. And that’s what Flaherty (RIP) set in motion in Budget 2013 when he announced that there would be no increase to the legislative authority of the CMHC to bind the Crown to guaranteeing more subprime loans beyond the $600B limit of authority (+ reinsurance).

Such marked the peak of the contemporary Canadian RE marketplace. And believe it or not, its been policy that has been further adopted by the Liberal government under Trudeau (much like the Liberals kept the GST around as it simply was good policy of the previous government.).

The problem with the CMHC is that they’ve grown to be such a behemoth in Canadas subprime mortgage sector that, to a large extent, they “are” the market. If CMHC stops guaranteeing subprime loans and/or were to be shut down, they’d precipitate a crisis of runs being made against their guarantees.

Whether the government gets away with slowly phasing the CMHC out, or if they face a big crisis remains to be seen. I suspect CMHC is still way too large relative to its assets and capital to avoid the necessity of a future, politically tumultuous bail-out. But then again, housing prices have remained elevated, albeit plateaued since 2013, quite beyond what I originally believed to be possible.

#49 Penny Henny on 05.08.19 at 6:49 pm

#17 Vancourerite on 05.08.19 at 4:45 pm
If the boomers have not saved enough, too bad. This is the luckiest generation in history. All the NDP taxes are justified, especially the spec tax on saytelite families. Read Ian Young’s opinion on what sattelite families pay in income tax.

If people don’t earn much income here, why should they pay income tax? BCers owning property in Arizona don’t pay income tax to the IRS. – Garth

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

Funny that you reference is never about restrictions in China for foreign ownership of land.

We have an open society. Be proud of that. – Garth

#50 Penny Henny on 05.08.19 at 6:56 pm

#17 Vancourerite on 05.08.19 at 4:45 pm
If the boomers have not saved enough, too bad. This is the luckiest generation in history. All the NDP taxes are justified, especially the spec tax on saytelite families. Read Ian Young’s opinion on what sattelite families pay in income tax.

If people don’t earn much income here, why should they pay income tax? BCers owning property in Arizona don’t pay income tax to the IRS. – Garth

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

Don’t forget that you always reference it as a Chinese tax, not an Arizonian tax.

We all know why. – Garth

#51 Barb on 05.08.19 at 7:04 pm

#40
I still cannot believe most people have never looked at Canada from space.
—————————-
And you know this, exactly how?

Garth’s comment “live quietly among the masses” is the secret to lifelong success. Always APPEAR to be living below your means. Presto…no envy from those around you.

As to longer mortgages, I’ve recently heard of 60+ year old folks who are still paying a mortgage on their principal residence.

Proof is a recent letter to the community paper from a senior who stated she had attempted to get Hydro and Fortis payment dates changed to the end of the month (with no satisfaction), “because that would be after CPP, OAS were received”.

My gawd…relying on that to pay your necessities!

#52 ImGonnaBeSick on 05.08.19 at 7:13 pm

#29 AGuyInVancouver on 05.08.19 at 5:22 pm

If you don’t agree with anything on this blog, why do you come here? To pick a fight with the host? You’re a whining little crybaby… Piss off.

#53 crowdedelevatorfartz on 05.08.19 at 7:15 pm

@#17 vancouverite
“If the boomers have not saved enough, too bad. This is the luckiest generation in history. ”

*****
Actually, statisticians believe the the Parent of Boomers were the luckiest generation.
Why?
Most were born in the late 1920’s so they were too young to remember the Crash of ’29, the Depression.
They were also too young to serve in World War II.
After 1945 the economy went on a 25 year boom cycle.
All you needed was “two feet and a heart beat” to get a job for life.
A good job. Check.
Still young. Check.
Along came the baby boom.

As a Boomer who was born at the tail end of the boom ….all I remember was classrooms JAMMED with kids.
47 kids in my grade 6 class was the record but 35 kids per class over the years was the norm.
Politicians knew the baby boom was over and they refused to build bigger schools.
“Portables” (aka Construction trailers) were the solution.
Jobs?
Pffft.
The 70’s were along dreary recession , the Vietnam war and Nixon imploding …..filled the head lines.
Unemployment was skyrocketing along with inflation and interest rates…..
All the jobs were spoken for and no one was moving from any crappy job.
My first real summer job was cutting pulp for $25 a cord and $40 a cord if we peeled it.
14 years old in a mosquito and black fly paradise cutting trees down, bucking them up and stacking them.
We would start before sun up because the flies would be unbearable by noon.
I didnt get paid til Sept when the wood was sold.
After my gas for the chain saw , my room and board for the summer, etc.
I think I made $600 for 2 months hard labour.
Jobs were scarce until the mid 1980’s
I moved all across Canada to find work.

“Luckiest Generation”?
For us “Tail end Boomers” it sure didnt feel like it…

#54 Dolce Vita on 05.08.19 at 7:18 pm

#45 Penny Henny

When younger I was called gruff, brash. Age tempers verve.

——————————————————–

Well Garth, that was depressing and reads like the script of the next great Canadian novel named:

Dystopia.

We’re in slow growth headed for a recession. The latter takes out bad economic players out of the market. A cleansing, creative destruction ensues and the next cycle begins.

Not all bad.

Though, I must say if it happens many, many will be wounded economically for a decade or more in light of the facts you wrote about today.

That, after having lived the early 80’s recession I would not wish on anyone (2 years negative growth followed by 4 years of high unemployment = 6 years of gloom). And then, people were not in debt up to their gills nor mortgaged to the hilt.

In the mean time, laying low in Italia (as if that’s an economic consolation prize).

Buonanotte

#55 under the radar on 05.08.19 at 7:21 pm

” Live quietly among there masses” – go about your business and eat your own bread. Or, fly low under the radar.

#56 crowdedelevatorfartz on 05.08.19 at 7:22 pm

@#34 Oakville ROCKS

“Liberals are gifting $250,000,000 to the Chinese bank…ARE THEY OUT OF THEIR F#@!%$# MINDS ????

******

You had to ask?

#57 the Jaguar on 05.08.19 at 7:22 pm

I missed contributing to Dolce Vita’s piece, but in a word Italy is ‘Incantevole”! I especially loved Bologna where the food was great and not as many tourists. Everything half the price it was in the ‘Hill Towns’ which were crowded with americans ( though their beauty was unsurpassed). I also liked my small glimpse of Sicily via the high speed ferry from Malta. Mama mia.
“The Bank of Canada’s boss, Stephen Poloz, came out with one a few days ago – longer mortgages. Like, really long. Decades.”. Like wow. Has he ever checked out an amortization schedule to see how little principal is paid on the first years of those long amortizations? If a divorce occurs within five years of buying the house on one of those the peeps walk away in a deficit after real estate and lawyers fees, Especially in a wobbly market. Bad idea.
Another take on that is where a couple decides to split after HUGE value appreciation since they purchased the place, only to find out neither one can qualify to buy the other out of their equity position because they can’t qualify for the mortgage to pay the other party out. Ouch! Downside of massive price appreciation.

Bandit looks well brushed in the new photo. One suspects Dorothy is responsible. I wonder who he loves best….D or G? The truth will never surface. It would be worse than Russiagate.

#58 crowdedelevatorfartz on 05.08.19 at 7:26 pm

@#45 Penny Henny

“Dolce is a guy? I always thought he was a chick.
Weird”

*****
People still use the term “chick”?
Weirder

#59 Linda on 05.08.19 at 7:31 pm

The average time before selling or renegotiation of a mortgage is less than 4 years? If this is true, then no wonder Garth promotes renting over buying. Because the thing with housing, especially these days, is that short term is simply not worth it. Particularly in provinces/cities where land transfer taxes apply.

As for Boomers needing to sell their homes, if someone has lived 54 years (for those Boomers born in 1965, last year of the baby boom) or longer & hasn’t managed to figure out how to handle their finances by now, they are NOT going to learn in the time they have left on this earth. For the many whose only pension plan is CPP, with OAS & possibly GIS to follow the fact they had to do something to prepare for the future is hardly news. If they chose to do nothing – & it is a choice – then the fact that retirement isn’t in the cards can hardly be a surprise. For those who are involuntarily retired for whatever reason not preparing for the future means the future is bleak.

For all the expected howls that people could not save due to economic circumstances beyond their control, I disagree. Daily I see folks saying they can’t save. Daily I see those exact same folks eating out, smoking, drinking, taking vacations abroad, buying designer goods etc. In other words, choosing to spend money they could have saved on other things. Since they made that choice, their claim they ‘can’t save’ is correct – but only because their choices.

#60 Dolce Vita on 05.08.19 at 7:39 pm

#51 Barb

Be not amazed.

4.7 million individual tax filing Canadians, 65 years or older, like that.

17% of the tax filing population.

https://www.canada.ca/content/dam/cra-arc/prog-policy/stats/itstb-sipti/2016/tbl04o-en.pdf

#61 Mark in Vic on 05.08.19 at 7:46 pm

Recent BC Provincial Court judgement in favour of a vendor whose buyers (Casey O’Byrne and Angela O’Byrne, Island Group Services Inc.
doing business as Engel & Volkers Vancouver Island) walked away from a real estate deal due to financial reasons on the day of transfer thus forcing the vendor to sell at a reduced price with another buyer. The judge awarded damages in the amount of $245,422.64 to the vendor:

https://www.courts.gov.bc.ca/jdb-txt/sc/19/06/2019BCSC0679.htm

#62 BJ on 05.08.19 at 7:47 pm

If you use our social services, like health care and education, you should pay taxes on your world wide income. Polls show the spec tax has wide support in BC

Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth

You missed the point of paying tax on world income if you’re a resident.

#63 crowdedelevatorfartz on 05.08.19 at 7:47 pm

@#48 The Real Mark
“The problem with the CMHC is that they’ve grown to be such a behemoth in Canadas subprime mortgage sector that, to a large extent, they “are” the market. If CMHC stops guaranteeing subprime loans and/or were to be shut down, they’d precipitate a crisis of runs being made against their guarantees.”

+++++
Total agreement.
CMHC has lived long past it’s “due date”.

It reminds me of the US govts mortgage backers Fannie May and Freddie Mac just before the 2008 real estate meltdown in the US.
Suspect loans based on ninja finances.
No job, no assets, no problem!

End CMHC govt mortgage “insurance” , watch the Banks tighten their mortgage sphincters, and let the buffalo chips fall where they may…..

#64 joblo on 05.08.19 at 7:55 pm

Lieberals only chance is for T2 to resign andget new leadership.

#65 Leftover on 05.08.19 at 7:55 pm

Interest rates will spike after the October election because our dollar is now undermining basic staples (food, fuel) and eroding purchasing power (inflation).

That’ll be the final blow. 2020 is not looking good anyway for anyone hoping to sell a house since buyers are already saturated in debt.

If there’s going to be a housing crash it’ll be next year.

#66 Lion on 05.08.19 at 7:55 pm

“#40 Bonhomme Carnaval on 05.08.19 at 5:50 pm
In the age of Google Maps / World, I still cannot believe most people have never looked at Canada from space.”

Nobody has. All pics and images CGI.

#67 crowdedelevatorfartz on 05.08.19 at 7:58 pm

@#59 Linda
“For all the expected howls that people could not save due to economic circumstances beyond their control.
******
Please google 1970’s Recession.
Then google 1980’s Recession.

###########################
” I disagree. Daily I see folks saying they can’t save. Daily I see those exact same folks eating out, smoking, drinking, taking vacations abroad, buying designer goods etc.
In other words, choosing to spend money they could have saved on other things.”

*********
Total agreement
No generation has a lock on fiscal intelligence.
Lazy people take the easiest route.
Human nature.
They will never learn.
Take a look around at work tomorrow.
Old Boomer, young Millennial, it doesnt matter.

Stupid + Stubborn = Screwed

#68 georgist on 05.08.19 at 7:58 pm

What is Poloz actually proposing extending the max term to? I’m unable to figure this out from this blog post.

#69 Nothing Surprises on 05.08.19 at 8:06 pm

Possible Solution to Boomer/Moister Home Desires.

Boomers want (need) to sell. Moisters want to own.

Boomers sell to the Moisters taking a 10% downpayment.
Hold the mortgage @ a 5% interest rate.
Invest the downpayment @ 8%.

SP – $700,000.
DP – $70,000.
MTG. @ 5% on $630,000 would provide $2625/mth., $31,500/yr.
DP making 8% on $70,000 = $5,600/yr.

Total Inc. to Boomers = $37,100/yr. + OAS + CPP for both would provide a fairly decent retirement income if they had no other pension.

Th Moisters would have the the right to pay principle amounts at any time to reduce debt. House could be sold transferring mtg. with same conditions.

Boomers sell house.
Moisters own the house.
Two wants now satisfied.

#70 AK on 05.08.19 at 8:09 pm

“Yes, it was in BC, which is one strange place on the best of days, but this election result is seismic.”
=====================================
Very strange. They vote for the Greens and many drive across the border to buy cheap U.S. gas. Go figure.

#71 Dolce Vita on 05.08.19 at 8:13 pm

#57 the Jaguar

Agreed on your Bologna and environs take and the Americans.

For the latter and hill towns, blame PBS and Rick Steves.

Just look at what he did to now trampled to bits Cinque Terre (his favorite World travel destination; thus, Mecca to his devout followers).

He’s tried pumping Naples, Capri, Pompeii, the Amalfi Coast and that whole bay area numerous times.

Thank God Americani watched The Sopranos and are fearful.

Although, Americani will flock to Taormina, Sicily to see where Al Pacino’s “The Godfather” 1st wife was blown up in a car and of course, the locals will serenade them at restaurants with The Godfather theme song.

Tacky but you have to admire American’s for their zeal.

-Over and out Garth

#72 WUL on 05.08.19 at 8:14 pm

#31 Bob Dog on 05.08.19 at 5:30 pm

Eliminate CMHC and the problem is solved. CMHC was created to help WWI soldiers form a family,…

wrongwar…wrongwar…wrongwar

1 January 1946 Central Mortgage and Housing Corporation was created.

Not that I am questioning the virility of the 46 year old returning WWI vets and their bravery and ability to start families at that age. They did not need help in producing kids.

With sincere exactitude,

WUL

#73 Muttley O'Toole on 05.08.19 at 8:17 pm

http://mwkworks.com/desiderata.html

In these vexatious times, it may profit many to have a read and go quietly about their business.
Garth’s advice should be heeded – if you stick your head above the ramparts, you may lose it.

#74 Tony on 05.08.19 at 8:24 pm

Re: #65 Leftover on 05.08.19 at 7:55 pm

If Trump’s tax returns check out then interest rates are already set to fall this September in America as Trump will attempt to resurrect the U.S. housing market. Housing prices will likely spike in the GTA in the last quarter of 2019 and all through 2020. Interest rates will also fall in Canada. Vancouver will continue to fall in price.

#75 Re-Cowtown on 05.08.19 at 8:30 pm

I doubt that the Greens will be much more than a token vote in any place other than the Island. BC’s experience with the Greens in the balance of power should scare the crap out of any sentient being.

There was a good article on the “victory” that Trudeau won against Saskatchewan re: the carbon tax. the “victory was a spit decision at 3-2, but the kicker was that it was upheld on a dubious technicality.

The feds main argument the feds made was that only the feds can enact a carbon tax as the provinces are unable to do it. But the fact that several provinces enacted their own carbon tax killed that argument. The justices agreed on that point. Only an minor accounting related matter swung the court into a 3-2 victory. It was the silliest most incompetent and accidental victory possible. Totally in keeping with the level of competence exhibited by Trudeau’s Apple Dumplin’ Gang.

What was even funnier was the Environment Minister asking everyone to throw in the towel, jump on board and get behind the feds to SAVE THE WORLD!!!! yeah…. I’m sure that Kenney will be eager to pile into that clown car….

Trudeau’s Carbon Tax hurts poor people; it is that simple and despicable. The 1% could care less if they spend another few bucks filling the Bentley or yacht or Gulfstream. Carbon taxes are meaningless to the wealthy but deadly to the poor as it forces them to choose between food and heat.

#76 X on 05.08.19 at 8:32 pm

The more house you buy the more they are going to load up on taxing you. Kinda silly when that’s how property taxes work, yet you get the same amount of garbage picked up.

I feel sorry for the average Joe who saves and puts all of his money into a nice big home, I mean, in a way why not, at a certain point the taxes on investment gains/dividends don’t seem fair, and a home offers tax free returns. Not saying it is a better return, but again, I can see some thinking this. So then the gov’t starts to tax house over X value extra. That’s what you get for saving and being financially diligent, you fork over more of your money to those who either aren’t, or are genuinely less fortunate, even though you haven’t been given a raise to pay the extra tax.

#77 amacneil on 05.08.19 at 8:37 pm

#46 Tom,

How did you avoid paying capital gains on the 570K ? Since none are your primary residence ….

#78 akashic record on 05.08.19 at 8:43 pm

with millions of Boomers about to retire with houses they can’t afford to discount

Would anyone “discount” the investment portfolio?
What’s the difference?

#79 Canadian Moose on 05.08.19 at 8:51 pm

We need more heroes like Loukanikos. God Bless our furry brothers! Rest In Peace Lou

Thoughts from the Hinterland!

#80 Ustabe on 05.08.19 at 8:54 pm

“Yes, it was in BC, which is one strange place on the best of days, but this election result is seismic.”
=====================================
Very strange. They vote for the Greens and many drive across the border to buy cheap U.S. gas. Go figure.

Not from mid-Vancouver Island., they don’t.

#52 ImGonnaBeSick on 05.08.19 at 7:13 pm

#29 AGuyInVancouver on 05.08.19 at 5:22 pm

If you don’t agree with anything on this blog, why do you come here? To pick a fight with the host? You’re a whining little crybaby… Piss off.

That’s the type of incisive, back and forth repartee spreading nuggets of knowledge that keeps me coming back.

#81 Reality is stark on 05.08.19 at 9:07 pm

The government is not likely to administer a wealth tax in this country anytime soon.
However expect the OAS to get completely clawed back if you have a retirement income over $60,000.
Also expect large property tax increases.
Either way you slice it the government needs more of your money. No politician can reduce the size of government. We simply don’t raise children with the strength of character needed to do the job.
Taxes are the way we solve all problems.
When you give these government stiffs carte Blanche they stiff you. So bend over.

#82 X on 05.08.19 at 9:08 pm

‘I’m sticking with this advice: live quietly among the masses.’ Garth

The funny thing about this advice is that for the wealthy it only takes the envy out of the equation. The wealthy will continue to be just so.

IMO people are normally wealthy for a reason. Higher education, working longer hours, found a market need, whatever. Unfortunately some are not wealthy for a reason too.

I am sure most wealthy don’t mind helping those that need a hand up in life, but those that want a hand out, not so much.

#83 Nonplused on 05.08.19 at 9:09 pm

At the peak of a debt cycle, all efforts are directed towards increasing the debt, because there is no painless way down.

Efforts being made in YVR and YYZ to tax the equity out of houses will unfortunately lead to many loans being underwater. It isn’t going to work. The only solution to a debt fueled bubble is collapse. The Minsky moment approaches. All efforts must be deployed to delay it as long as possible.

Ancient societies used to have something we know as a debt jubilee. That would mean every so many years all debts to farmers were forgiven, but not necessarily merchants. This was to protect food production. But it also meant lenders were careful to lend smartly, because if they lent badly they would eat the loses.

How would we implement a debt jubilee in Canada? It does not need to be a one-off event. Instead, limit, for those provinces where it is not already the case, compensation for defaulted debt to the asset pledged against it. Can’t pay your mortgage? The bank gets your house and only your house. Can’t pay your student loan? The bank gets nothing because it is an unsecured loan. Implement a 10 year limit on the ability of the bank to garnish your wage for a student loan and limit the garnish to 20% of after tax income.

Borrowers in this country are extremely irresponsible. But the main problem we have is that lenders are even more irresponsible. Borrowers are like drug users, but lenders are like drug dealers. The borrowers obviously have a problem, but the lenders are facilitating a destructive trade for their own profit. Any lender that has financed a boat or a home lone or under questionable circumstances deserves to lose all of their money.

And anyone who has lent money to a government also deserves to lose all of their money. Governments get their money through taxation. What people who lend money to governments are doing is attempting to gain from future taxes what the government is not willing to propose as current taxes due to the public backlash that would result. In other words people who lend to governments are participating in a scam, and they deserve to lose all of their investment in that scam.

It is time for people who lend money to realize that only in the case of productive investment can it ever be paid back, and any unproductive loan they make will not. Some mortgages qualify as productive, the avoided rent argument, but many do not. Those that do not will not be repaid.

Governments only ever pay off their debts one of two ways, default if it gets out of control, and inflation while they can manage it.

#84 Ace Goodheart on 05.08.19 at 9:17 pm

Ever wanted to live in the Beach, but you couldn’t afford those multi million price tags?

Now, you can:

https://www.realtor.ca/real-estate/20638512/1-1-bedroom-single-family-house-119-coxwell-ave-toronto-woodbine-corridor

Complete with it’s own rap video. Lil’ yellow house….

#85 Remembrancer on 05.08.19 at 9:20 pm

#27 Captain Uppa on 05.08.19 at 5:18 pm
“… live quietly among the masses”

Garth, what does that mean exactly?
——————————————
Not Garth, but I’m thinking its stealth wealth – if there’s a neighbourhood of Honda Civics all around you, don’t be the one parking a G-Wagon at the top of the hill…

#86 CRA on 05.08.19 at 9:23 pm

#46 Tom Berrington on 05.08.19 at 6:24 pm

“I bought 7 houses back in 2010 and they have now appreciated 58% since then. I just sold 3 houses last week and yesterday getting $1.445 million net after all expenses.”

I presume this net gain is before capital gains tax since they are not a primary residence.

#87 tccontrarian on 05.08.19 at 9:39 pm

“I’m sticking with this advice: live quietly among the masses.” GT

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

Do your patriotic duty Garth!

Run, alongside Jordan Peterson (as advisor) – and save this country from transgendering down the toilet.

Or…is it already too late?

TCC

#88 Blacksheep on 05.08.19 at 9:47 pm

#24 Blacksheep on 05.08.19 at 5:11 pm

“Alarm bells may have been ringing, but free trade and globalization was (and still is) the future. It’s unstoppable and its origins go back hundreds of years. Best idea is to embrace it and adapt (multiple sources of income, constant retraining, constantly improving etc.). Basically diversify your skills like you diversify your portfolio.”
——————————
Ahh…you mistook my observations as complaints.

My little business’s (multiple streams) is pretty much recession proof as I rode out the GFC with out too much trouble.

My comment was that the source of the troubles in housing, was not housing, or the greed of the masses, but the situation they were dealt, as the system/corps try anything, to continue on status quo.

Capitalism still works for me, but is sucking for a significant % of the population, especially the young who are missing out on opportunities we enjoyed 20-30 years ago.

Globalism is OK as long as you don’t mind adjusting your children’s living standard down significantly, because that’s what it does to the first world, since they don’t enjoy the benefit of a diversified portfolio.

#89 Goto on 05.08.19 at 10:05 pm

Absolutely correct !

End the CMHC program. Make banks and their investors risk their own capital without a taxpayer backstop, and you would see the supply of credit normalize.

At a minimum, the banks would be forced to do their due diligence when lending if their capital is actually at risk.

If you take an attractive activity, and remove any risk that it poses to the participants, you get caution free participation and all of the unintended consequences that come with it. Think orgy – the debt kind

#90 Albertaguy in AB on 05.08.19 at 10:09 pm

#69 Nothing Surprises

Wouldn’t that turn your tax free capital gain of PR into a fully taxable income stream? Interest taxable at highest marginal rate if not mistaken.

#91 Trumpocalypse2019 on 05.08.19 at 10:13 pm

Chaos.

How perfectly foreshadowing this word is.

The USA is now entering a historic crisis. Conflicts with China, Russia, Venezuela and others are immediately ahead.

Those who live to see 2020 will be dumbstruck by how obvious this train wreck was in coming, and how few took time to get ready.

Canada will be perfectly distracted and torn apart by political and economic chaos just as the broader world explodes.

PREPARE.

#92 crowdedelevatorfartz on 05.08.19 at 10:16 pm

@# 97 Canadian Moose
“We need more heroes like Loukanikos. ”

+++++
My God.
A Greek, stray dog, got his 15 minutes of fame.
Yet I .
Languish, unappreciated, in a smelly elevator.
There is no Dog…..

#93 crowdedelevatorfartz on 05.08.19 at 10:24 pm

@#87 tccontrarian

“Do your patriotic duty Garth!
Run, alongside Jordan Peterson (as advisor) – and save this country from transgendering down the toilet.
Or…is it already too late?”

++++++
Too late for what?

For Garth being insane enough to jump back into the cesspool of politics?

Or quietly amassing a balanced and diversified portfolio that allows the investor to ignore the envious, bickering rabble……

#94 Living in AB on 05.08.19 at 10:46 pm

Hi Garth, how about a post on how much house one should own. Ie 3x your income, 30% of income should service your home, etc.

#95 Vampire Studies (post grad) on 05.08.19 at 11:35 pm

47 IM in C – peak of the baby boom was 1959. That would be age 60 now.

https://www150.statcan.gc.ca/n1/pub/84f0210x/2008000/ct004-eng.htm

#96 Linda on 05.08.19 at 11:44 pm

#67 ‘Crowded’ – I don’t have to Google the 70’s or 80’s recessions – I lived through them. Did a lot of reading & learned about paying myself first as well as keeping ahead on expenses. Never did manage the advised 6 months but did manage 2. I truly believe that having that cushion helped me find & maintain work in difficult times. Funny thing about being unemployed – its like employers can scent the taint of desperation & getting a job offer is difficult to say the least. But if one is already employed, or has the bills covered for a couple of months finding work seems to be much easier. I’ve asked around & other people have told me they’ve noticed the same thing, so maybe there is something in it.

#97 Ponzius Pilatus on 05.08.19 at 11:45 pm

The commies in BC are wasting taxpayers money again.
https://theprovince.com/news/politics/mri-wait-times-fall-sharply-after-government-boosts-scans/wcm/233f9121-0c75-479b-a590-f1c632d7a0f1

#98 crowdedelevatorfartz on 05.08.19 at 11:50 pm

@#91 trumpocalypse Impeachment 2020

Trumpy.
Have you noticed the increasing frequency ( pun intended) of “emergency alerts” on our tv’s and smartphones?

I think.
Its a conspiracy!

OR
It’s the real thing!

Either way…….
We’re doomed.
What do you think?

Is McDonalds is still a Blue Chip investment?

#99 DON on 05.08.19 at 11:59 pm

#75 Re-Cowtown on 05.08.19 at 8:30 pm

I doubt that the Greens will be much more than a token vote in any place other than the Island. BC’s experience with the Greens in the balance of power should scare the crap out of any sentient being.

*****************
Provincially, the Greens are becoming a viable choice. Due to the BC Liberal/Cons/Social Credit who sat back and grew the economy on money laundering and real estate as per the news.

Federally, I want to vote for the conservatives but not under their current leadership so….I welcome a Green wave in protest. They are basically conservatives with a green bent (imo) and way less in your face attitude.

Can you imagine a Con minority with the Greens holding the balance of power…yes, yes you can PEI. Imagine Scheer trying to get rid of the carbon tax with the greens onboard. Nope, I can’t

The younger generations may just need to rebel against their parent’s party. The kids will have their say as well, it is only a matter of time. If not this election…it is coming. And if 3 former Liberal MPs accept the Green’s invitation…game on!

Everyday thy are one vote closer. When the smoke from the forest fires blanket BC and Alberta this July?/August/Sept, the climate will be on everyone’s minds. It has been really bad the last 3 years, nothing like spending the summer in-doors. Ask people from Kelowna what they think?

On the island, on would think the wind would blow it away…nope! The cloud of smoke extends well into the Pacific, through in a fires or too from Washington state and we are literally ‘Up in Smoke”. The last three years have been terrible, never seen before (at least not in our lifetime).

I am also looking at an electric car, and I can’t believe my classic V8 heart is saying this. I figure I can just tape the V8 sound and get some good speakers on the electric car.

#100 Vampire Studies (post grad) on 05.09.19 at 12:15 am

51 Barb – actually this may be a good idea.

Put all CPP and OAS into one account. Pay hydro, cable, cell, car and house insurance, property tax plus whatever else is “fixed” or varies little or can be equal payment out of that account. Invest any money left
over.

Once you start the CPP/OAS it wont stop, and they
should increase with COLA. Is also mostly/totally tax
free.

This leaves other items to be covered out of your investment or registered withdrawals. You can treat
some of these as partially or fully taxed according to their origin, and every time you buy something discretionary you’ll be thinking of the tax that has to be paid and if you really need or want it.

Now if we can line up those bills for payment just after CPP/OAS received, you don’t need the float and can
take that $2-3k and invest it for long term.

I kinda like it.

#101 Saggy Flats on 05.09.19 at 12:16 am

If you use our social services, like health care and education, you should pay taxes on your world wide income. Polls show the spec tax has wide support in BC

“Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth”

The underlying issue is tax evasion, not xenophobia.

No evasion. – Garth

#102 DON on 05.09.19 at 12:24 am

#83 Nonplused on 05.08.19 at 9:09 pm

At the peak of a debt cycle, all efforts are directed towards increasing the debt, because there is no painless way down.

Efforts being made in YVR and YYZ to tax the equity out of houses will unfortunately lead to many loans being underwater. It isn’t going to work. The only solution to a debt fueled bubble is collapse. The Minsky moment approaches. All efforts must be deployed to delay it as long as possible.

********
I am noticing that the BC Government is starting to offer more rebate programs (energy efficiency etc) that would require electricians, plumbers, installers etc (jobs). Most likely to offset the loss of activity in new builds and renovations.

Poloz isn’t making much sense one week to the next.

‘We’ve never seen this before, but everything is just fine, we got it…Peach out’

There’s come a point when people now they are being fed bullshit…I think we may have reached it.

#103 the ryguy - In cabo on 05.09.19 at 12:33 am

Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth
———————————————————————————-

If the benefits are not reciprocal between the countries then by your definition those other countries are xenophobic…hmm, is that what you’re suggesting? Garth Trump for PM!

#104 Smoking Man on 05.09.19 at 12:33 am

Chaos is right.

I just smoked my new nabours. They have rated out two times for smoking on my patio. Tonight I nailed them.

I bought some insence, burned it on the patio then double fisted some Marbourgh lights.

With in 5 minutes, security is knoking on my door.

“Sir this is your last warning, this is a non smoking property.”

“Hey man like I told you two other times I dont smoke, I’m burning incense. It’s part of my religion. I’m a devoted to Nictonite”

He said. “yeah I hear popular”

So I invite the the pretend a cop min, wage loser into my man cave. Show him my incense gear.

Hes beging for forgiveness, I said mistakes happen. But I did see some one smoking up stairs. Those people are wierd. Must be Democrats.

He knocks on their door. Mumbling sounds then thay start screaming at him.

Let’s see who gets evicted first.

Dr Smoking Man
PhD Herdonomics.

#105 Smoking Man on 05.09.19 at 1:29 am

When I divorced Canada. It was October.

The freaks got elected. I so want to come back. But I’m a risk taker, and these beasts want to crush us.

The song on the radio when I made up my mind, I’m going west.

https://youtu.be/wxE4pzvROcQ

#106 Bdwy sktrn on 05.09.19 at 1:47 am

2.99 5yr money happening today around vancouver I hear

#107 Howard on 05.09.19 at 6:24 am

#29 AGuyInVancouver on 05.08.19 at 5:22 pm
Residents and citizens who earn nothing, pay no tax and are subsidized by the state get free services, whether they were born here or not. Recall that 40% of Canadian families contribute no net tax. Should we cut them off, too? You are spewing xenophobic nonsense. – Garth
_ _ _
Garth Turner, tirelessly championing the “students and housewives” who rack up speeding tickets in their $400k McClarens by comparing them to working Canadians living just above the poverty level.

———————————-

There have recently been issues with foreign students acquiring Canadian credit cards, racking up massive debt on them, and then leaving the country without paying up. The merchandise is then sold back home for a tidy profit.

Canada, and Canadian corporations, are such patsies.

I am sure no Canadian-born resident would dream of misusing a credit card. The anti-foreigner bias on this blog is thick enough to choke on. Get lost. – Garth

#108 maxx on 05.09.19 at 7:23 am

“……..live quietly among the masses.”

Absolutely. I liken it to swimming under water when it’s rainy, windy and wavy.

All is calm just below the surface.

People have been driven nuts with the fallout of stupid, low interest rates and the resultant long-term spike in RE prices. The economy sucks in terms of all imaginable debt.

One of the main reasons people want change is that they fear the future. Wasteful governance with absolutely no sensible plan nor direction does not reassure nor inspire voters.

Current government is a complete, farcical disaster. I couldn’t dream it, were it not reality.

If I were a member of this Lib charade, I’d dust off my c.v.

#109 technical analysis?? on 05.09.19 at 7:37 am

DELETED

#110 Trumpocalypse2019 on 05.09.19 at 7:39 am

North Korea firing missiles again today.

https://www.nytimes.com/2019/05/09/world/asia/north-korea-projectile-test.html

Trump’s son subpoenaed, now he is increasingly desperate for a military distraction.

It’s all coming together. Use your time wisely while you still have it.

PREPARE.

#111 NoName on 05.09.19 at 8:00 am

#97 Ponzius Pilatus on 05.08.19 at 11:45 pm

The commies in BC are wasting taxpayers money again.
https://theprovince.com/news/politics/mri-wait-times-fall-sharply-after-government-boosts-scans/wcm/233f9121-0c75-479b-a590-f1c632d7a0f1

Funny thing you mentioned that, insted of impending doom of climate change. Only question is whats will happen after.

Buy let me share my last week with you.

My wife discovered some swelling on her neck few months ago went back and forth to doctor, mri came in quite quickly, and she was sent to see specialist following weak after mri came in.

She took week off, work, possible bad news and daily malestation from husband and kids, work related stress could be overvelming.

So she goes for her appointment with specialist and doc tells her something along those lines, i didn’t look at you file yet, because i sm retiring in twoo weeks, you have to go back to your fam fiz to look for someone else to do surgery…

No just imagine how much better will be when bill hillys like me trade their gas guzlers for electric car, how gas tax revenues losses will shorten a wait lists.

I wish MRI do surgeries… And on a side note its not about bandwidth its about throughput.

#112 Captain Uppa on 05.09.19 at 8:19 am

>>I am sure no Canadian-born resident would dream of misusing a credit card. The anti-foreigner bias on this blog is thick enough to choke on. Get lost. – Garth>>

Sad state of affairs.

I remember a 3rd generation Canadian-born resident complaining to me that immigrants took all the jobs and that’s why he’s in the position he’s in (living pay check to pay check in a crummy house) … had nothing to do with drinking a 2-4 of beer every day, apparently.

My immigrant parents on the other hand came here with nothing and didn’t know the language. They worked their butts off in factories for decades. Now they outright own a nice home in Toronto and are retired in modest comfort.

Moral: stop complaining about others and do better yourself.

#113 Headhunter on 05.09.19 at 8:29 am

we look to our leaders for guidance, our leaders/politicians always spend more then they bring in so why shouldn’t we?

the debt in the system can never be repaid.. ever…mathematically impossible. Debt Jubilee. Until then enjoy your life.

#114 Thessalonians 4:11 on 05.09.19 at 8:33 am

Our esteemed blog host (OEBH) is making, I believe, a passing reference to Apostle Paul’s letter to the Thessalonians.

To wit: “Make it your goal to live a quiet life, minding your own business and working with your hands, just as we instructed you before.”

An interpretation of this is that those who espouse to love others do not stick their noses into other’s business nor do they stir up trouble. Nor do they sit back with folded hands and expect others to provide for them.

OEBH might also be making a passing reference to Henry David Thoreau who said, paraphrasing, that the mass of men lead lives of quiet desperation.

#115 oh bouy on 05.09.19 at 8:40 am

@#97 Ponzius Pilatus on 05.08.19 at 11:45 pm
The commies in BC are wasting taxpayers money again.
https://theprovince.com/news/politics/mri-wait-times-fall-sharply-after-government-boosts-scans/wcm/233f9121-0c75-479b-a590-f1c632d7a0f1
_____________________________

ditto for ontario

#116 oh bouy on 05.09.19 at 8:43 am

@#87 tccontrarian on 05.08.19 at 9:39 pm

Do your patriotic duty Garth!

Run, alongside Jordan Peterson (as advisor)

_______________________________________

that would be both hilarious and sad.

#117 robert james on 05.09.19 at 9:07 am

The BC commies are wasting taxpayer money again probing money laundering in BC.. Everyone knows it didn`t happen .. https://www.castanet.net/news/BC/255847/Crime-in-real-estate-report

#118 Dharma Bum on 05.09.19 at 9:12 am

All this jealousy by the have-nots of the haves is going to lead to fascism.

The have-nots are looking for a scapegoat, and the garbage low quality politicians are setting up their shallow platforms with that goal in mind.

The have-nots are champing at the bit to blame everyone but themselves for their financial woes.

Which identifiable group is going to be the scape goat?

The rhetoric being spewed by these “tax the asset owners to death” politicians is nothing short of Nazism.

“Live quietly among the masses” is sound advice.

Think it can’t happen here?

Think again.

#119 Mr Dressup 2.0 on 05.09.19 at 9:18 am

Canadians got their legal weed, Mr. Dressup running the show and a budget that balanced itself…
reminds me of a song Meatloaf once sang, two out of three ain’t bad…
which reminds me of a song Sam Cooke once sang … a change is gonna come

#120 Tater on 05.09.19 at 9:20 am

#99 DON on 05.08.19 at 11:59 pm

I am also looking at an electric car, and I can’t believe my classic V8 heart is saying this. I figure I can just tape the V8 sound and get some good speakers on the electric car.
—————————————————————–

Look at the middle ground of plug in hybrids. The next generation of cars coming out will do 40km on electric only (perfect for in city driving) but they have full gas engines for longer distances. Plug it in every night to charge it.

Volvo, BMW, Audi, Range Rover, lots of options for varying budgets.

But whatever you do, don’t buy a Tesla.

#121 crowdedelevatorfartz on 05.09.19 at 9:25 am

Spotted a “House for Sale” sign on the commute this am.

“Owner willing to Finance” emblazoned across the sign……

Havent seen that in a while in The Lower Brainland.

#122 Re-Cowtown on 05.09.19 at 9:26 am

#99 DON on 05.08.19 at 11:59 pm

I am also looking at an electric car, and I can’t believe my classic V8 heart is saying this. I figure I can just tape the V8 sound and get some good speakers on the electric car.

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

If you can live with the guilt of enabling child slavery to mine the rare earth elements used in the lithium ion batteries have at it.

I can’t.

#123 Howard on 05.09.19 at 9:33 am

This is bloody outrageous and infuriating. So the CMHC is gambling with taxpayer money and will socialize the losses in case of falling prices.

Conflict of interest anyone??

CMHC Will Share Equity Losses, Gains in First-Time Buyer Plan

https://www.bloomberg.com/news/articles/2019-05-09/cmhc-will-share-equity-losses-gains-in-first-time-buyer-plan

#124 NoName on 05.09.19 at 9:40 am

this is funny

https://twitter.com/IncomeDisparity/status/1070518344862916608

#125 young & foolish on 05.09.19 at 9:51 am

“we look to our leaders for guidance, our leaders/politicians always spend more then they bring in so why shouldn’t we?” — Headhunter

Because the government does not really operate as a household. Government debt ends up as private wealth.

#126 young & foolish on 05.09.19 at 9:55 am

“……..live quietly among the masses.” — GT

Will not the tax man come for financial assets as well? Where can you hide with a 7 figure portfolio? Are you safer in a rental?

#127 mark on 05.09.19 at 10:05 am

Housing has totally changed, the past 100 years is not indicative of present and future markets.

Embrace renting like many other countries do, young Canadians will pay the price for entering this housing market, it is no longer a way to save and increase wealth?

#128 NoName on 05.09.19 at 10:17 am

#118 Dharma Bum on 05.09.19 at 9:12 am
All this jealousy by the have-nots of the haves is going to lead to fascism.

The have-nots are looking for a scapegoat, and the garbage low quality politicians are setting up their shallow platforms with that goal in mind.

The have-nots are champing at the bit to blame everyone but themselves for their financial woes.

Which identifiable group is going to be the scape goat?

The rhetoric being spewed by these “tax the asset owners to death” politicians is nothing short of Nazism.

“Live quietly among the masses” is sound advice.

Think it can’t happen here?


Now that you almost mentioned “it could happen here”, there is a podcast chanel from i hart radio, titled “it could happen here”, something very similar but different. Talks how politics got so funny, and other stuff…

#129 young & foolish on 05.09.19 at 10:20 am

A few days ago we got a much needed crash course on MMT here on this blog. The government, it seems, has tools at their disposal, some of which would render the current economic trajectory as obsolete.

The young are about to get the keys ….

#130 millmech on 05.09.19 at 10:20 am

Hopefully the 30yr plus mortgage returns, as a holder of bank shares I need the cash. People do realize that at 4.14% over 30 yrs on $600,000 you pay $450,000 in interest which works out to $15,000/yr, or $1200/mth. The greater fools will be paying more in interest than one pays in rent( while renting for $1200/mth is throwing your money)

#131 young & foolish on 05.09.19 at 10:29 am

Questions from young investors:

The trade deal with China is resulting in big sell offs on the exchanges. But most people believe that eventually there will be a trade deal, economies will continue to function, companies will presumably make profits …. etc …

So, who is selling now, and why?

The young & the foolish. – Garth

#132 Nonno Nicola on 05.09.19 at 10:36 am

#112 Captain Uppa
#59 Linda

“My immigrant parents on the other hand came here with nothing and didn’t know the language. They worked their butts off in factories for decades. Now they outright own a nice home in Toronto and are retired in modest comfort.”

Hear, hear! I must know the same 3rd generation whiner you do. Whine, whine, whine and pass me another latte Mr. Starbucks barista…. I am not kidding. I don’t know of any immigrant in my circle of family and friends who doesn’t have a paid off home. I also know immigrants who can’t string together a sentence of grammatically correct English who are multimillionaires and one who is a billionaire…I will grant that “da times, they were a better” decades ago but any child of an immigrant will tell you the frugality and austere lives these immigrants lived to achieve their Canadian dream. Sorry, I also share some of another Linda’s lack of sympathy for boomers who were born in this great land and have nothing to show for it.

#133 Lee on 05.09.19 at 10:37 am

Bitcoin seems to be surging.

#134 Dogman01 on 05.09.19 at 11:12 am

#24 Blacksheep on 05.08.19 at 5:11 pm

The West and Canada are run by and for the “owners” not the population. Add 3 Billion new workers to the market and wages go down…..how else could it be? That is great for the “owners” and terrible for society notice which way we went and notice all the discussion was on the “benefits “of the Free Trade.

The Giant Sucking sound of Jobs…Notice the establishment candidates chuckling at him. – who are they working for?

https://www.youtube.com/watch?v=W3LvZAZ-HV4

Only way to win this is become an owner which is hard as wages barely support shelter costs in Canada anymore.

#40 Bonhomme Carnaval on 05.08.19 at 5:50 pm

Canada seems to lack any strategic Infrastructure or Housing plans\vision. I still can’t understand how we allowed a lack of pipeline capacity to ever occur. Gob smacked, baffled, extreme negligence – It is just such a simple thing.

If Climate Change is a real thing why no plans for world class Mass Transit infrastructure…..instead just a tax. It would make our cities more livable ……..but I guess that is not a priority, the Tax is.

#135 Lorne on 05.09.19 at 11:22 am

Ponzius Pilatus on 05.08.19 at 11:45 pm
The commies in BC are wasting taxpayers money again.
https://theprovince.com/news/politics/mri-wait-times-fall-sharply-after-government-boosts-scans/wcm/233f9121-0c75-479b-a590-f1c632d7a0f1
…….
You may not feel it is such a bad idea it you or a family member actually needs an MRI. Oh, and I think you mean the NDP/Green Coalition.

#136 Ubul on 05.09.19 at 11:24 am

#85 Remembrancer on 05.08.19 at 9:20 pm

#27 Captain Uppa on 05.08.19 at 5:18 pm
“… live quietly among the masses”

Garth, what does that mean exactly?
——————————————
Not Garth, but I’m thinking its stealth wealth – if there’s a neighbourhood of Honda Civics all around you, don’t be the one parking a G-Wagon at the top of the hill…

If you drive a G-wagon why would you live in the neighborhood of Honda Civics all around you?

#137 45north on 05.09.19 at 11:31 am

Richard Warnica: In an inspired performance, Norman lawyer Marie Henein did incalculable damage to the Trudeau brand

https://nationalpost.com/news/canada/in-an-inspired-performance-henein-did-incalculable-damage-to-the-trudeau-brand

the Liberals aren’t the answer, they’re the problem

#138 IHCTD9 on 05.09.19 at 11:40 am

#81 Reality is stark on 05.08.19 at 9:07 pm

…Either way you slice it the government needs more of your money. No politician can reduce the size of government. We simply don’t raise children with the strength of character needed to do the job.
Taxes are the way we solve all problems.
When you give these government stiffs carte Blanche they stiff you. So bend over.
____

100%. Mils and Gen Z pay attention. IMHO, no politician will make the choices necessary because no Canadians care enough about the future to suffer the pain of healing.

Canada is quickly devolving into a society where taxes are super high, and yet hardly anyone pays them. Bottom 40% already pays zip, Top end will be dodging and weaving more and more as they see the pitchforks being lifted off the wall. IHCTD9 types will slowly increase in number. The taxless underground economy will swell.

Revenues are going to hit a wall, and frankly there will be little that can be done to improve the situation.

#139 Robert Ash on 05.09.19 at 11:44 am

Thanks to # 24 Blacksheep for the Link to the Sir James Goldsmith Charlie Rose, interview.. for the GATT legislation of 1994. This summarizes our Problems, then and now… Artificial People with enough education to be dangerous… never having done much, and erroneously, believing that they are firm correct in their convictions, when a Western Farmer with common sense would have pointed out that a Labor cost differential of 47:1 with the Adoption of the GATT proposal, would NOT benefit Developed Countries… how stupid… kind of the same type of rhetoric and blind commitment our Leaders, Horgan, Trudeau, et al.. have to ideology, versus common sense..Very Similar to the Carbon Tax debate. Economic Theory is important, but should be examined then cross examined, then an actual vote or referendum… It is worth viewing this Link… from #24, as it summaries the challenges, we likely have to try to reverse to some extent… Interesting when applied to Trump’s stance.. Blacksheep sums, up the problems, in his comment nicely as well… Good analysis!

#140 Ubul on 05.09.19 at 11:46 am

Family doctor’s office called: they claim, if I use the service of a walk-in-clinic, the government (OHIP?) charges the family doctor.

BS or true? The family doctor’s office certainly got the info about the visit in the walk-in-clinic. What would be the basis of such charge?

#141 Samantha on 05.09.19 at 11:55 am

“The fact average people in major cities cannot afford average houses has created chasms…”

But this is true for most major cities in any country. There is simply too much competition for prices to be affordable for the average people. I agree that house prices are completely detached from what people earn, but I don’t see this changing anytime soon unfortunately.

#142 Dogman01 on 05.09.19 at 12:15 pm

#139 Robert Ash on 05.09.19 at 11:44 am

The Link again as everyone should watch it:

https://www.youtube.com/watch?v=wwmOkaKh3-s&t=182s

That is the problem I have with Trump; he is an ass-hat; but he seems to be the only player willing to identify and address fundamental problems in the US economy for working people. Look at the unemployment rate…..what a turn around.

Trade needs to be, two ways “my stuff for your stuff” not your stuff for an IOU.

China trade is Goldsmith’s “Coffee cup” model and only Trump seems to be prepared to remedy it.

#143 NoName on 05.09.19 at 12:33 pm

#140 Ubul on 05.09.19 at 11:46 am
Family doctor’s office called: they claim, if I use the service of a walk-in-clinic, the government (OHIP?) charges the family doctor.

BS or true? The family doctor’s office certainly got the info about the visit in the walk-in-clinic. What would be the basis of such charge?

True!

#144 Pfft on 05.09.19 at 12:39 pm

@#132 Nonno Nicola on 05.09.19 at 10:36 am
#112 Captain Uppa
#59 Linda

“My immigrant parents on the other hand came here with nothing and didn’t know the language. They worked their butts off in factories for decades. Now they outright own a nice home in Toronto and are retired in modest comfort.”

Hear, hear! I must know the same 3rd generation whiner you do. Whine, whine, whine and pass me another latte Mr. Starbucks barista…. I am not kidding. I don’t know of any immigrant in my circle of family and friends who doesn’t have a paid off home. I also know immigrants who can’t string together a sentence of grammatically correct English who are multimillionaires and one who is a billionaire…I will grant that “da times, they were a better” decades ago but any child of an immigrant will tell you the frugality and austere lives these immigrants lived to achieve their Canadian dream. Sorry, I also share some of another Linda’s lack of sympathy for boomers who were born in this great land and have nothing to show for it.
____________________________-

Life has literally never been better for most people on this planet than it is right now.

#145 Remembrancer on 05.09.19 at 12:39 pm

#140 Ubul on 05.09.19 at 11:46 am
Family doctor’s office called: they claim, if I use the service of a walk-in-clinic, the government (OHIP?) charges the family doctor.
—————————————–
Oh boy, yep this is a bit of a kettle of fish… its actually a clawback, not a charge as you’ve likely been rostered…

Background – first there’s this…
https://www.ontario.ca/page/walk-clinics

And then you have this for more background…
http://www.health.gov.on.ca/en/pro/programs/pcpm/

and finally this circa 2016…
https://www.ctvnews.ca/health/why-your-walk-in-clinic-visits-could-mean-trouble-for-your-family-doctor-and-you-1.2775362

Bottom line – If you have a family doctor, you are likely enrolled in one of these so-called Family Health Network orgs though its not presented like a club – which likely run their own walk in clinic hours as well btw. There are contracted schedules (office & fee) and payments based on agreements with the province for enrolled patients – I’ll stop now as I’m not an expert on how it works and likely making a hash of it, but their funding model includes standard fees for serving you as their patient, go somewhere else and that may be a payout to someone else instead as part of the deal…

#146 Tater on 05.09.19 at 1:03 pm

#141 Samantha on 05.09.19 at 11:55 am
“The fact average people in major cities cannot afford average houses has created chasms…”

But this is true for most major cities in any country.
—————————————————————

Well, no it isn’t true. You can read more here: http://www.demographia.com/dhi.pdf

Please note Toronto and Vancouver are more expensive than Seattle, New York and Miami.

#147 Saggy Flats on 05.09.19 at 1:15 pm

Re: 101 “No evasion. – Garth”

The Mayor of Richmond BC has been very public on this issue and points to the tony sub-area of Thompson in Central Richmond with it’s predominance of fatherless multi-million dollar house and Mercedes family extended combos. By the income tax numbers this is also the ‘poorest’ area of Richmond, children at school showing up with no lunches and parents claiming less than $20K per annum incomes.

I would like to ask how three generation families come to Canada with only enough to purchase multi-million dollar homes and six figure cars in the drive while Daddy disappears for years at a time ( I have personal knowledge of this, most stay only enough time for the ink to dry before leaving the family behind) and grandma expects the school to furnish lunches for the several children in school like they commonly do in Asia.

Meanwhile technical medical clinics and schools as well as purpose built public facilities and infrastructure ( meals on wheels etc) are running at over capacity, while no one in residence pays a nickel in income tax local or global. Its willful tax evasion, pure and simple, nothing to do with xenophobia or the always convenient cries of ‘racism’.

BTW, this is all public information and proven stories relating to every issue mentioned have been published many times. Unless you think Malcom Brodie, Mayor of Richmond and his council are racist xenophobes ( half are Asia origin) then call this what it is, tax evasion on a massive scale and Canadians getting the worst of it for providing services unfairly allocated.

It is not a matter of race, it is a matter of scofflaws evading taxation in Canada by working in their native countries and not filing taxes in Canada that serve to pay for services offered freely here, albeit on Canada’s broken ‘honour’ system.

Of course it’s not evasion. These people are taxed where they earn income. Period. When four in ten Canadian households contribute net zero to funding the same services you mention, your argument fails. It’s envy and xenophobia motivating the comment. Both are ugly. Spend this time improving your own life. Way more useful. – Garth

#148 Remembrancer on 05.09.19 at 1:35 pm

#143 NoName on 05.09.19 at 12:33 pm
#140 Ubul on 05.09.19 at 11:46 am
Family doctor’s office called: they claim, if I use the service of a walk-in-clinic, the government (OHIP?) charges the family doctor.

BS or true? The family doctor’s office certainly got the info about the visit in the walk-in-clinic. What would be the basis of such charge?

True!
——————————————-
Though their approach could use some work. Maybe explain how the family doctor’s / health network services could have been used instead and the available benefits, instead of a quasi-skip tracer approach lambasting Ubul for seeking legally available healthcare, BTW paid for in part with his taxes (assuming not the 40% :-)… Jeez… even an upsell follow up appointment would be preferable to what it sounded like happened. FFS, anything rather than balling you out for having the temerity to seek medical help…

#149 Neo on 05.09.19 at 1:37 pm

#46 Tom Berrington

So you’ve averaged about 6% a year. That’s an average return on the stock market but with way more work being a landlord. Congratulations.

#150 DM in C on 05.09.19 at 1:44 pm

#51 Barb;

“As to longer mortgages, I’ve recently heard of 60+ year old folks who are still paying a mortgage on their principal residence.”

My parents are 69 and 71 and still have a $130k mortgage on their place in Halifax.

They’ll never pay it off, and they don’t want to move and rent because they smoke like chimneys and like to smoke indoors.

#151 Damifino on 05.09.19 at 1:46 pm

#144 Pfft

#144 Pfft

Life has literally never been better for most people on this planet than it is right now.
————————————

“Look back and see only progress. Look forward and see only doom”.

– Auntie Vaxxer

#152 PastThePeak on 05.09.19 at 1:52 pm

#140 Ubul on 05.09.19 at 11:46 am
Family doctor’s office called: they claim, if I use the service of a walk-in-clinic, the government (OHIP?) charges the family doctor.

BS or true? The family doctor’s office certainly got the info about the visit in the walk-in-clinic. What would be the basis of such charge?
+++++++++++++++++++++++++++

Never been the case for me, but don’t know if happens in other cases.

My family doctor is in a standalone clinic (with maybe 5 other doctors), not part of any chain. But family doctor is close to where I work, not where I live. Whenever I use a walk-in clinic near home, there has never any comment from my family doctor, although I always tell the walk-in who my f.doctor is.

#153 Damifino on 05.09.19 at 1:53 pm

#129 young & foolish

The young are about to get the keys …
—————————-

And the fuel, insurance, maintenance and parking costs.

#154 EB on 05.09.19 at 2:01 pm

– BC Resident makes all their income internationally.
– Uses BC services, roads, schools, policing, hospitals, government services, and every other conceivable benefit from the public purse
– Pays no income tax! Xer only contribution is presumably sales taxes.
– Having a problem with this is xenophobia

Leaving aside spamming “phobia” to shut down any uncomfortable discussion, sometimes fear is justified. If you have cancer you’re not being neoplasmphobic to want it fixed.

#155 Ubul on 05.09.19 at 2:02 pm

#143 NoName
#145 Remembrancer

Thanks!
It is weird that doctors can “roster” patients without consent or even informing them. We certainly don’t remember signing a “roster agreement” that the ctv article mentions.

#156 MF on 05.09.19 at 2:04 pm

138 IHCTD9 on 05.09.19

Not a Canada specific problem.

MF

#157 Steven Rowlandson on 05.09.19 at 2:14 pm

Canadians can not legally get the right kind of change in government at the ballot box. It is not allowed.

#158 IHCTD9 on 05.09.19 at 3:10 pm

#156 MF on 05.09.19 at 2:04 pm
138 IHCTD9 on 05.09.19

Not a Canada specific problem.

MF
_____

That does not make it any better.

#159 Michael Randallbard on 05.09.19 at 3:25 pm

Real Estate On New York City’s “Billionaire’s Row” 40% Unsold Due To “Unrealistic” Prices

https://www.zerohedge.com/news/2019-05-09/real-estate-new-york-citys-billionaires-row-40-unsold-due-unrealistic-prices

#160 IHCTD9 on 05.09.19 at 3:25 pm

#153 Damifino on 05.09.19 at 1:53 pm
#129 young & foolish

The young are about to get the keys …
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And the fuel, insurance, maintenance and parking costs.
_____

I’d pass on those keys myself. That’s like getting the keys to a ’58 Edsel.

#161 jess on 05.09.19 at 3:25 pm

‘longer’ debt cycles go with the gig economy thinkers?

Silicon Valley has attempted to propagate the myth that we have entered a brave new world where the old rules no longer apply—those rules being basic labor protections and collective bargaining rights.

But the defining feature of the gig economy has never been workers accepting jobs through an app on their phone: it’s that they work with no benefits, no job security and no unions. And it’s this model of the future, in which workers are more fully fungible, that is being promoted not only by tech acolytes, but also by traditional employers and the American Right.

A March report from the National Employment Law Project (NELP) details how hotel chains Marriott and Hilton, as well as the right-wing American Legislative Exchange Council and the Cato Institute, have thrown their weight behind “a far-reaching, multi-million-dollar influence campaign” to rewrite worker classification standards at every level of government….”

Uber’s statements ahead of their $90 billion initial public offering (IPO)—set to begin trading on Friday

http://inthesetimes.com/working/entry/21880/uber-lyft-strike-ipo-rideshare-gig-economy

#162 Doug in London on 05.09.19 at 3:34 pm

I’m sticking with this advice: live quietly among the masses.
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Yup, sums it up quite well. I’ll stay the course with the diversified portfolio, buying only what’s on sale.

#163 jess on 05.09.19 at 3:49 pm

tightening blacklisted

Australia’s riskiest suburbs for home loans revealed as banks push for higher deposits
By Kathryn Diss

https://www.abc.net.au/news/2019-05-09/australia-riskiest-suburbs-for-home-loans-revealed/11056136

VA mortgage lenders hit with federal subpoenas

By LORRAINE WOELLERT

05/07/2019 04:04 PM EDT
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Federal investigators have issued subpoenas to several mortgage lenders that make loans to military veterans, seeking information on delinquencies and payments.

The investigation is being led by the Department of Veterans Affairs Office of Inspector General in cooperation with the U.S. attorney in the Eastern District of New York, according to four people with knowledge of the subpoenas.

At least eight lenders, and likely more, have been asked to turn over hundreds of files on VA home loans made between 2013 and 2017, according to two people with knowledge of the request.

The requests include questions about quality control and loan audits

https://www.politico.com/story/2019/05/07/va-mortgage-lenders-federal-subpoenas-1414318

https://www.mansionglobal.com/articles/miami-condo-king-brought-back-to-earth-by-luxury-home-price-correction-126341

http://www.chicagomag.com/real-estate/May-2019/Get-a-Pre-Recession-McMansion-at-Yesterdays-Prices/

Bank 34 abandoning mortgage lending
Plans to shutter nine loan productions offices
May 8, 2019
Ben Lane
…”the bank is shuttering its mortgage operation, citing the unstable financial environment surrounding mortgage lending.

“On May 1, 2019, Bank 34, the wholly-owned subsidiary of Bancorp 34, Inc., took steps to exit Bank 34’s operations with respect to originating residential mortgage loans for sale into the secondary market,” the bank said in an SEC filing. “Bank 34 believes that this transaction aligns with its strategic goal of reducing its reliance on an earnings stream that can be more cyclical and volatile, while increasing its reliance on the more stable earnings from its core commercial banking business.”..”

https://www.housingwire.com/articles/48992-bank-34-abandoning-mortgage-lending

#164 robert on 05.09.19 at 3:57 pm

Crime Pays; The RE laundromat is alive and well in YVR.
https://www.citynews1130.com/2019/05/09/province-report-dirty-money-bc-real-estate/

#165 jess on 05.09.19 at 4:09 pm

blockchain – figure technologies grants approval in 5 minutes, funds in 5 days

Billed as a reverse mortgage alternative, the Figure Home Advantage targets the Boomer market
November 14, 2018
Alcynna Lloyd

https://www.housingwire.com/articles/47411-figure-technologies-debuts-sale-lease-back-product

today

The company announced Thursday that it closed on an asset-based financing facility on blockchain of up to $1 billion alongside Jefferies and WSFS Institutional Services….
Figure was launched last year by former SoFi CEO Mike Cagney, who announced his intention to leverage blockchain, AI and advanced analytics to elevate the lending process, especially for home equity.

The company has said it plans to introduce home improvement loans, HELOCs and sale-leaseback products for retirement…
https://www.housingwire.com/articles/49009-figure-technologies-lands-1-billion-blockchain-investment-to-revolutionize-heloc-lending

#166 Mr. White on 05.09.19 at 4:15 pm

The answer to high priced housing is simple. Regulate development and construction like the do in Houston and Dallas. Or in simpler terms, don’t regulate all that much.

Scarce buildable property is caused by ‘experts’ ‘planning’ what a city should look like. Market be damned, its a utopia we are building here. The result is crappy cities and expensive homes.

#167 yvr_lurker on 05.09.19 at 4:29 pm

#147 Saggy Flats
You have articulated the problem as clear as can be.

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The CRA rules are explicitly clear from their website. If you are a permanent resident of this country (as defined by the tax act), then one must report your worldwide income to the CRA and be taxed on that accordingly. many countries have reciprocal tax treaties. What am I missing here, and why is this xenophobic? I was in this situation years ago when I worked for part of the year overseas. The only way to avoid this is to not be a resident of Canada as defined by the tax act; i.e. own no property etc… The problem is that Canada does not have the resources to track down world-wide income…

#168 Saggy Flats on 05.09.19 at 4:41 pm

“Of course it’s not evasion. These people are taxed where they earn income.”

I wasn’t aware that income taxed in China paid for Canadian social infrastructure. Can I go to China for free medical treatment using the same logic?

Tax evasion in the context of Canadian Law means they do not contribute to Canada.

Who cares where they are otherwise tax encumbered. This ‘tax there but live here” might be a globalist economic dream but until China has a tax revenue sharing agreement with Canada “if you want to live in Canada then you have to pay for the privilege”.

Persons who are receiving services and have legal residence in Canada but working overseas and not paying taxes in Canada are criminals according to Canadian Tax Law. As an ex-Minister you should know that.

Nope. They are not. – Garth

#169 Remembrancer on 05.09.19 at 5:48 pm

#155 Ubul on 05.09.19 at 2:02 pm
#143 NoName
#145 Remembrancer

Thanks!
It is weird that doctors can “roster” patients without consent or even informing them. We certainly don’t remember signing a “roster agreement” that the ctv article mentions.
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No problemo – maybe you used something like this?

https://www.ontario.ca/page/find-family-doctor-or-nurse-practitioner

Or if a long time patient, maybe they had you sign some at some point? Anyway – its how it works in ON now…