The scourge

An update on The Scourge.

Currently there are 19,255 listings for Airbnb in Toronto, a city with a 1% vacancy rate and an average rent of $2,523 – tops in Canada. Critics argue so many condo units have been turned into ghost hotel rooms that renters’ choices have been halved. And they’re probably right. This is a disease.

Rustics, young children and the naïve still think Airbnb is all about Mom & Pop helping to bust the mortgage by renting out the back bedroom. Forget that. According to InsideAirbnb almost two-thirds of the nineteen thousand listings in Toronto are for entire houses or apartments (that’s 64.3%) – owned by investors. Fair to say a whack of these 12,500 homes would be rentable to long-term tenants – but, alas, no more.

Over 19,000 Airbnb listings in Toronto. $140 a night.

Source: InsideAirbnb

By the way, a whopping 45% of the listings available (over 8,700 of them) have been posted by people with multiple units. No Mom. No Pop. The average rental rate is $140 a night, and the average property is booked for 101 nights a year – leaving them empty for the equivalent of nine months. That means the average host is earning $14,140 annually from a unit that could potentially bring in $30,000 a year from a tenant.

What are these people thinking?

Probably that their profit potential as Airbnb hosts is unlimited, so things can always get better. They may also be looking at the explosion of renter rights lately, and the impossibility of punting some dude who decides not to pay the lease, trashes the unit or invites his stoner buddies over for a few months. Even getting someone to leave at the end of a lease is a hassle. Or selling a rental unit. If your landlord-rentier butt is hauled before the rental tribunal, well, good luck. Tenants rule these days.

As mentioned here recently, there’s a messy patchwork of rules and regs across the country dealing with The Scourge. Van is botching enforcement. Toronto is paralyzed in a bureaucratic process. Only Quebec has taken swift action to force all hosts to be licensed, collect an accommodation tax and register with the revenuers so rental fees are taxed as income.

Now let’s compare this sloppiness and paleo political response to what’s happening in other places. Like Ireland, which yesterday brought the hammer down. Seems folks in Dublin and Cork have been struggling with falling vacancy rates and rising rents, just like Toronto and Vancouver. As a result the Irish government has banned Airbnb in these urban areas, except if a short-term rental space is being listed in a primary residence. In other words, whole houses and apartments can no longer be removed from the housing pool and devoted to Airbnb usage.

The motto is ‘one host, one home’ in areas of high housing demand. Professional landlords with multiple properties can no longer turn them into hotels without applying to local government for a change-in-use designation. That costs money, takes time, and will likely be refused in high demand areas (called ‘rent pressure zones’).

If  landlords flaunt the rules, they get whacked – fines of five thousand euros, six months in jail plus another 1,500 euros per day for if breaches continue. Ouch.

Well, Canada continues to muddle along. While Toronto passed a version of the ‘one host, one home’ rule, prohibiting Airbnb-only condos, it’s yet to be enacted. Meanwhile both rents and real estate prices feel pressure in a market where 19,000 units have been added to 36,000 available hotel rooms. Unlike hotels, Airbnb hosts have no employees, are unregistered, pay low residential tax rates (not commercial), don’t insure guests and may not even claim the cash received as taxable income.

The online world has bequeathed great benefits to mankind. This ain’t one of them.

$      $      $

Remember the fun we had with the dolce Ital-Canuck guy when he was given a blog post to tell us about how to live on bugs and vino in Europe? Maybe, suggests blog dog Ron, we should do more of that here.

“Why not start a contest?”  he asks.  “Let the steerage section have a chance to author some of the posts on your pathetic blog. You set the rules. Then the deplorables can vote on their favourite. Gives you a break from the daily grind.”

Hmm. Okay, I’m open to that. Scads of people show up here every day. Most are lurkers, with only a tiny fraction leaving comments. Without a doubt there’s a deep pool knowledge to be tapped. Or not. Let’s find out.

Send me a post. 500 words max. Tell us what’s right or wrong with the world. All are welcome to submit. Even realtors and irritating Millennials. But no selling. No emails smelling of weed. And no dangling participles. My address is [email protected] Submit your picture, too. Or your dog’s. Not judging.

 

118 comments ↓

#1 crowdedelevatorfartz on 07.03.19 at 1:06 pm

Are you suuuure you want to invite the world to your door?

#2 I'm A Believer on 07.03.19 at 1:10 pm

I believe you have mentioned at some point that government should stay out of messing with the real estate market. Shouldn’t the same apply to the rental market? It’s my property, I paid for it, I should have the right to choose my tenant; short or long term. Correct?
If governments begin dictated how your rent your investment property why bother renting it? Just sell it.
Now what happens if all Airbnb rentals are sold to longterm owners? There goes the rental market.
Same issue that exists now.

#3 Dustin on 07.03.19 at 1:27 pm

Garth, I never liked the term Lurker, it brings up images of someone in a dark corner watching other people have a conversation. Is there an unwritten rule that when one reads comments, they ought to leave a comment? If that’s the case, you’d be spammed with endless comments.

#4 Flop... on 07.03.19 at 1:41 pm

“Why not start a contest?” he asks.

I’ve lost so many popularity contests that I am the most popular person at losing popularity contests…

M45BC

#5 JB on 07.03.19 at 1:43 pm

Airbnb condos are everywhere and yet only the smart condo owners notice. Friends had a swanky condo in the west end on Bloor by the Old Mill. Little did they know both sides of their condo were Airbnb rentals. This place was really classy. Much to their chagrin people came and went the overnight parties, the pot smoking. they took it to the board and almost got laughed at. Sold at cost after one year. They were starting a lawsuit and gave up after figuring out the the upfront cost of lawyers wasn’t worth the fight. Don’t fool yourself these things are everywhere. Only they stay empty until hell freezes over and the devil starts his parties. Oh yes one unit in another building was rented out as a brothel to wealthy clients. Airbnb playboy bunny!

#6 Ahhhh ... on 07.03.19 at 1:50 pm

Ireland … with the Temple bar in Dublin. And the Crown bar in Belfast. Were not allowed to enter our hotel in Waterford until it was cleared from a bomb threat last year. To make up for our discomfort of a couple of hours they hosted an ‘open bar’ for about four hours. Very gracious hosts indeed. Just have to go back …

https://worldcams.tv/ireland/dublin/temple-bar

#7 RWZM on 07.03.19 at 2:09 pm

You didn’t set a deadline for the deplorable essay. Are you thinking someone will just crank one out at the speed you crank out blog entries?

No worries. You have until 4 pm. – Garth

#8 Shawn Allen on 07.03.19 at 2:34 pm

Leveraged Investing

#71 Jesse on 07.03.19 at 2:15 pm asked:

Why wouldn’t you use leverage to invest in the market? If the S&P500 always goes up, why not invest only in leveraged ETF’s, like a portfolio of 60% TMF and 40% UPRO? That way you don’t need to pay a bank for the loan, and you can watch your portfolio grow faster than the market!

********************************
That sounds logical but I understand that leveraged ETFs use futures markets (which are expensive) and tend to fall in value if the market is flat.

A better idea might be a true leveraged fund that takes in cash, borrows some more and invests all that. It would likely have to be a closed end fund. Look around there may be something like that out there. In some ways Berkshire Hathaway is one as it cleverly uses insurance float and deferred taxes as leverage. Leverage which traditionally cost it less than zero percent.

Not a game for armatures. Buffett advises strongly against leverage for mere mortals.

It would have to be low cost leverage. But who would lend to an investment fund at very low cost?

#9 Shawn Allen on 07.03.19 at 2:35 pm

I said, not a game for armatures… nor for amateurs.

#10 Ubul on 07.03.19 at 2:45 pm

People with small capital taking advantage of the opportunities, afforded by globalism. Trying to make up for decades long wage stagnation brought to them by globalism.

Build more, let the market take care of supply – demand.
That’s what market is for.

Why do some people feel entitled to decide how other people should invest their own capital, taking their own risk?

Nobody forces anybody to direct their capital into GICs or other type of securities, due to various social considerations.

#11 Tater on 07.03.19 at 2:55 pm

#71 Jesse on 07.03.19 at 2:15 pm
Why wouldn’t you use leverage to invest in the market? If the S&P500 always goes up, why not invest only in leveraged ETF’s, like a portfolio of 60% TMF and 40% UPRO? That way you don’t need to pay a bank for the loan, and you can watch your portfolio grow faster than the market!
—————————————————————–

Oh boy. Here’s a hint, over the long run, levered daily returns will deviate substantially from the long run return x2.

#12 Ron on 07.03.19 at 3:28 pm

#11 Tater on 07.03.19 at 2:55 pm
#71 Jesse on 07.03.19 at 2:15 pm
Why wouldn’t you use leverage to invest in the market? If the S&P500 always goes up, why not invest only in leveraged ETF’s, like a portfolio of 60% TMF and 40% UPRO? That way you don’t need to pay a bank for the loan, and you can watch your portfolio grow faster than the market!
—————————————————————–

Oh boy. Here’s a hint, over the long run, levered daily returns will deviate substantially from the long run return x2.

—————————————-

I still don’t see the problem. I’ve held SSO (S&P 500 Ultra ETF) for almost a decade and while the returns are not 2x SPY, they are about 1.6 – 1.8x over my holding period.

Other option is to use a bit of margin in your portfolio. It’s cheap, tax deductible, and if you don’t overdo it, you can goose your returns on a balanced portfolio.

#13 FreeBird on 07.03.19 at 3:32 pm

I gave this info for last post on AirBBs but maybe worth it again. Good doc on impact of tourism in Venice incl private hosts. At 15:35 numbers for impact of AirBB market are given (70000 or 3x private hosts to hotels). Some hosts have multiple properties.
https://youtu.be/aHNWZ018ln8
Cities have to define line between private host vs unlicensed commercial enterprises. Amsterdam is coping with same issue. There’s also orgs like Homeway or if really broke or on tight budget and brave there’s couchsurfing https://www.couchsurfing.com.

#14 miketheengineer on 07.03.19 at 3:32 pm

Garth et al:

Italy. About 20 years ago, I signed up at the Italian Consulate in Hamilton….but didn’t get the passport. After reading the blog, and some personal decisions….I decided to complete the process. I have the passport. I can leave here and go to europe anytime I want and stay if I want. Italy is not a perfect place, but it is the home of my family, and 1/2 of them still live there.

Thanks for the post Garth…it was the push I needed to complete something I started a long time ago.

#15 IHCTD9 on 07.03.19 at 3:32 pm

…Not a game for armatures.
___

Years ago, I pulled the armature out of an old Ford starter motor to try investing with it.

I got caught holding a pile of Nortel when they announced the layoffs.

So, I agree.

#16 Leftover on 07.03.19 at 3:39 pm

“…and may not even claim the cash received as taxable income.”

What do you think?

If CRA needed a soft target, Airbnb hosts would be top of the heap.

#17 Citizen on 07.03.19 at 3:39 pm

Garth,
“The sharing economy” I shudder when I hear that term.

“We don’t need to follow rules because we have this great technology that makes it fair for everyone”

I call

#18 Ace on 07.03.19 at 3:47 pm

Airbnb in Toronto has become over saturated with market speculators trying to make extra $$$ while Toronto property prices have been skyrocketing. Now prices aren’t going up as quickly and many of those said properties are already going for sale. Going after airBNBs will likely cause an influx in properties to go up for sale on the market. Already too much is going up for sale, too quickly. The government is aiming for a very prolonged “soft landing” so too much inventory is bad.

#19 Frank Rotiroti on 07.03.19 at 4:10 pm

Too many Lottery players winning diminishes the prize. Airbnb cannot last same as all those other sharing technologies, competition will drive the prices down and then there will be a glut of homes either for sale or rent. Nobody wins.

#20 Ron on 07.03.19 at 4:10 pm

When I was shopping for a ‘plex investment in Montreal, it struck me that the long term tenant rental yields do not come close to carrying the property at the market price. In other words, the market has already adjusted to price in Airbnb income.

Another observation: if the market can sustain so many Airbnb properties, doesn’t this tell us that hotel room supply is woefully short in our major cities? or that people want to visit interesting neighborhoods instead of some chain hotel in the downtown core?

#21 Lillooet, BC on 07.03.19 at 4:11 pm

Hi Garth:
where is your 3rd alternative blogger?

#22 TurnerNation on 07.03.19 at 4:24 pm

Cobble some Deleted Smoking man posts together and voila a new post. Easy.

#23 Hawk on 07.03.19 at 4:45 pm

General Advice to All would be Residential Landlords from a veteran.

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

Residential Real Estate’s glory days of appreciation are OVER! In a best case scenario, you may get a couple or % points appreciation. This makes long term renting completely non-viable via the communist piece of legislation known as the “residential tenancies act”.

If you can make Airbnb work, make it work for as long as you can. Once the communists choke that market as well, —-(and they’re working on it)—-get out of all residential real estate permanently. There is no business in the world that imposes 1/10th absurd legislation on a business owner that a residential landlord has to endure and it’s WAY PAST TIME to just say no!

As that chick sings——-

“My name is NO,……..My song is No,…….my number is NO……you need to let it go……….you need to let it go”

Buy commercial real estate or a REIT or do some other business…………..PERIOD!

#24 T on 07.03.19 at 4:57 pm

People just don’t understand the repercussions of their actions or they don’t care. It’s an ignorant and selfish world these days.

#25 Dolce Vita on 07.03.19 at 5:04 pm

“…how to live on bugs and vino in Europe?”

Very funny.

;-)

I had Osso Buco alla Milanese tonight washed down with a lovely Trebbiano white wine (the uncommon kind).

And you Garth and your lovely Cdn. cuisine (except you Québec, you rock), what did you have?

One of, or all of these Cdn. “cuisine” delicacies:

“Hamburgo” (where 100% beef includes hooves, eyelashes, tails, entrails, etc.) + Tim’s Tasteless, Odorless Swill they call coffee and the ever delightful, fat drenched, with enough sugar to put a horse into seizure…doughnuts? Then again, if in Lunenburg there is always Kippers and Bits or Toad in the Hole or the Atlantic’s bird of carrion…Lobster. And in a pinch, there are always Beavertails, good for the waistline.

Oh ya, and did I mention the Chinese found ‘roids in Canadian meat, Italia finds Roundup in Cdn. grain and those perfect bell peppers at the store…ya, enough GMO to lower the sperm level of all mankind.

————————————-

The more I read you posts Garth, the more I come to appreciate HOW WELL RUN Québec is when it comes to caring about its people and the affordability of a home for them to live in.

And, good on the Irish vs. Airbnb! And everything they say about the Irish holding their liqueur, IT’S ALL TRUE. I almost went into emergency in Dublin trying to keep up with them (1-1-2 over here and not 9-1-1).

Airbnb is a plague on the less fortunate or young starting out that can not afford to buy a home and should be treated as such, just like La Belle Province does.

I liked your Math for the average 416 et. al. Airbnb purveyor, THAT WAS GOOD Garth.

————————————-

To be honest I don’t think there is anything wrong with Canada. It’s a great country, plain and simple. Whatever is a big deal in Canada is peanuts in most other countries or a tempest in a teapot for the most part.

I mean, just look at the news from South of the border. There are nights you just want to start punching yourself in the head. Cdn. news is the the perfect calm me down and antidote to the lunacy coming out of that country.

Still, bring on other Steerage authors…looking for some payback.

Ciao d’Italia Garth and fellow Commenters (future victims).

#26 georgist on 07.03.19 at 5:21 pm

Anecdotally, more and more friends who previously thought AirBnB was a one-way bet are now far more negative.

Friend went to NY, got told on meeting the guy “if people ask, say you are my relative”. The apartment wasn’t great either.

I’ve heard a few more speaking about dirty places, misleading pictures etc.

Airbnb themselves are dishonest in that they present themselves as adding capacity by enabling sporadic renting. They are really a professional landlord site.

#27 georgist on 07.03.19 at 5:23 pm

Airbnb spike is short term. Landlords found they couldn’t make good coin in long-term rentals, once they priced in all the things they didn’t think about. So they hopped onto the next golden goose:airbnb. But now every simpleton is jumping in, so it won’t work.

#28 froggy on 07.03.19 at 5:33 pm

#2 yes i believe you should do what ever you deem necessary with your own property but taxes need to be paid accordingly which would make it very unattractive like paying higher property taxes and a accomodation tax which is fair because your running it like a hotel but politician’s are slow to mandate these rules so they don’t make people upset they may lose there job but it will come because i don’t feel i should subsidize your endeavour with my tax dollars so myself i don’t care just pay your taxes

#29 Dolce Vita on 07.03.19 at 5:41 pm

ADVICE for all you budding essayists (from a former essayist):

1. Get a good dog picture, YOUR OWN. If not, a 9th to 13th century street will do in a pinch – tough to find in Canada, so something old (he likes old stuff, I mean [hint] look at the age of all his reno jobs – could you imagine Garth in Italia? He wouldn’t know where to start…my guess is Rome, the Palatine).

2. 500 words. Hogwash Garth and you know it. Let ‘er rip boys and girls, pour your hearts out. He’ll trim it all down, 12 to 20 back and forth emails later, so no worries.

3. Enjoy Garth’s emails, it has a great dignified picture of him and it is a treat to have someone as accomplished as My Liege conversing with you. Expect many “asides”.

4. Have fun and don’t be sensitive. Garth is an accomplished author (and that from me having published 5 books, bought by 10’s of thousands) so accept his changes and live in infamy.

5. As Garth puts it, expect to be “fresh red meat” thrown to the “Il Colosseo” lions that is the Comment section.

6. The odd snarky Comment, rebut with humor or get snarky like I did.

7. When Garth emails you that it’s way to late to be reading and responding to Comments about your masterpiece, he’s correct. Trust in Garth.

Now, bring on the budding victim essayists (lion roar in the background).

#30 Makow on 07.03.19 at 5:52 pm

The bureaucrats down at Toronto Metro Hall are collecting kickbacks from the AirBnb ‘rentals’.

AirBnb ‘rentals’ are used by money launderers to wash their dirty cash by mixing their rental income with their illegal funds.

They then get approved for mortgages, but they don’t declare this income to any tax agency.

Now, if you, a peasant, only makes a 1 cent mistake in your tax returns, in some countries, armed police would storm into your home the next moment.

#31 Freedom First on 07.03.19 at 5:52 pm

#1 Crowdedelevator…….

Garth has a harem full of Amazons to edit any incoming debris.

#32 Green Elm Edie on 07.03.19 at 5:55 pm

Garth, maybe the Air B N B ers like to rent suites because they can enjoy the green. (Can’t in hotels). I wonder how the pot enforcement is going in condos and apartments, I’d guess not the same as in hotels. Maybe the Air B N B revolution is correlated with the Green legalization?

#33 Blackdog on 07.03.19 at 6:05 pm

@Dr. Garth, regarding the contest, don’t you already get told daily what is wrong with the world? Yet you want more? I’ve got the picture chosen, but has the deadline passed?

The deadline has been waived. Go for it. – Garth

#34 Dolce Vita on 07.03.19 at 6:07 pm

#31 Freedom First

Actually, no.

Garth has quick mind and wit. A propensity to digest a lot of information in the blink of an eye.

Submit an essay that he likes.

In no time at all (hours, many back and forth emails) he will have whittled it down to something acceptable for a theme that day on his Blog.

As for the Amazons, I’m all in on that, but alas…

#35 HH on 07.03.19 at 6:19 pm

@ Citizen

Dislike the “sharing economy” term myself, though for different reasons. I totally get why Uber and AirBnb came up with the term in their early days: if they straight out called themselves a “taxi platform” and a “hotelling platform” instead of “X-sharing app”, they would have been murdered by incumbents early on.

But now that they are mature, can we please drop the pretense? What’s “sharing” got to do with it? It’s just business…

Won’t wax righteous about taxes and regs. Expect a dozen other commenters will complain on that before nightfall.

As relatively frequent user of both Uber and AirBnB, my great pet peeve is more with attitudes and behaviours that use of word “sharing” causes people to adopt.

People actually take that word seriously and so either take the cloyingly overfamiliar attitude of someone letting his buddies crash a couch / beg a ride or the equally insufferable attitude of charity-givers letting a poor hobo “share” their home /car. Somehow this “sharing” word makes them completely forget this is a business transaction with an actual paying customer on one end of it…

Ticks me off no end. When paying market rates for something I want neither “buddy-buddy” nor “Mother Theresa”. Why can’t we all just behave with the frosty cool, somewhat distant courtesy of adults giving and receiving a paid service?

And the worst of it is: the pernicious vibe of this “sharing” mis-nomer ends up infecting the customers too! How many times have you read reviews on AirBnb that sound something like this:

” Oooh… Thank you Laura and Michael for letting us share your lovely home! Oooh… Simper-simper-simper…”

Bemuses me to read stuff like that. Seriously? Are these lovely people letting you into their lovely home / car / whatever free of charge and out of the goodness of their hearts? You wouldn’t break out in profuse pathetic simpering thanks to, say Holiday Inn, for sharing a lovely hotel room with you, so what’s different here? (Surely not the price… Price differential with hotels is not significant enough to justify such attitudes.)

#36 oh bouy on 07.03.19 at 6:23 pm

@#25 Dolce Vita on 07.03.19 at 5:04 pm
“…how to live on bugs and vino in Europe?”

Very funny.

;-)

I had Osso Buco alla Milanese tonight washed down with a lovely Trebbiano white wine (the uncommon kind).

And you Garth and your lovely Cdn. cuisine (except you Québec, you rock), what did you have?

One of, or all of these Cdn. “cuisine” delicacies:

“Hamburgo” (where 100% beef includes hooves, eyelashes, tails, entrails, etc.) + Tim’s Tasteless, Odorless Swill they call coffee and the ever delightful, fat drenched, with enough sugar to put a horse into seizure…doughnuts? Then again, if in Lunenburg there is always Kippers and Bits or Toad in the Hole or the Atlantic’s bird of carrion…Lobster. And in a pinch, there are always Beavertails, good for the waistline.

Oh ya, and did I mention the Chinese found ‘roids in Canadian meat, Italia finds Roundup in Cdn. grain and those perfect bell peppers at the store…ya, enough GMO to lower the sperm level of all mankind.
_______________________________

Hahaha, you trigger easily.
Italian ‘cuisine’ no better than anywhere else old fella.

#37 Sebee on 07.03.19 at 6:26 pm

Insightful Garth, but the inaction is hardly coincidental. No politician in this country has the appetite to reduce rents or house prices. That would have economic implications and would unslave the masses from debt. And that just ain’t good for the politicians. If the masses are debt slaves…well, just makes everything easier.

#38 Dolce Vita on 07.03.19 at 6:27 pm

Airbnb and its ilk is a plague on any community it raises its hydra head in.

I have watched Venezia over the decades go from a population of 300,000 or so, a living vibrant city to 70,000 and the rest Disneyland for tourists since no one can afford the rents and live in Venezia let alone buy since they are being outbid by the infestation that are Airbnb and its ilk “investors” and “customers”.

A line has to be drawn in the sand between the community that is for those that live and work in a city or neighborhood vs. the soulless “let me turn your neighborhood into a hotel complex” investors and their throng.

I like what Ireland, Berlin and La Belle Province have or are doing.

At least they have a sense of community and a heart for their own people.

As for the rest, shame (including Venezia).

#39 CJohnC on 07.03.19 at 6:33 pm

#13 Freebird

HomeAway is just as bad for multiple unit out of country owners as Airbnb. On a recent trip in May, with 1 HomeAway rental and 3 Airbnb, the HomeAway and 1 Airbnb were absent (out of country) multiple unit owners and 2 were locals.

#40 Victor V on 07.03.19 at 6:45 pm

Vancouver’s benchmark home price falls below $1M for first time since May 2017

https://www.bnnbloomberg.ca/vancouver-s-benchmark-home-price-falls-below-1m-for-first-time-since-may-2017-1.1282212

#41 expat on 07.03.19 at 6:46 pm

I was a landlord for 40 years.

For 30 of those we had renters with us for years who took pride in their property. They were solid hard working folks who for whatever reason never bought.

In the last decade of zero bound, these folks bought their own homes and the dregs left were what we knew as the rental pool.

For every 30 applications – 29 were broke druggies or flakes. They were the easy come easy go crowd who simply left after destorying property or simply just disappeared in the night.

It made sense for us to sell into the bubble. Our properties were bought by specs. Now these AirBnb leveraged-o- the-knickers specs think their disrupter solution is gonna be a monster payday.

The problem was the last 10 years – as a landlord there was few quality renters out there.

Thus using AirBnb with its checks and balances seems like a great idea. Until it isn’t.

The AirBnb craze is a bubble and soon politicians will intervene and destroy the business model. Zoning checks, revenue checks, etc.

Then we have CRA who everyone thinks is nowhere to be seen.

As usual, CRA is 3-5 years behind.
But fear not, they will catch you for non remittance of their blood money.

Glad I’m out.

BTW – Now that millenials are grown up, the pool of decent renters probably is better.

#42 Sebee on 07.03.19 at 6:53 pm

#38 Dolce Vita

Are you saying that increasing capacity at cost of locals is detrimental to a balanced community? Short line from that point to immigration. Parallels are certainly there, just duration changes. :-)

#43 Howard on 07.03.19 at 7:03 pm

#3 Dustin on 07.03.19 at 1:27 pm

Garth, I never liked the term Lurker, it brings up images of someone in a dark corner watching other people have a conversation.

——————————————————-

Yeesh. You just won the Snowflake of the Century award.

#44 Timmy on 07.03.19 at 7:09 pm

This gets back to the question of whether housing is a right for people living in a city and contibuting to the economy or another vehicle for speculation and investment.

In 83 Million Eviction Records, a Sweeping
and Intimate New Look at Housing in America

https://www.nytimes.com/interactive/2018/04/07/upshot/millions-of-eviction-records-a-sweeping-new-look-at-housing-in-america.html?action=click&contentCollection=The%20Upshot&region=Footer&module=WhatsNext&version=WhatsNext&contentID=WhatsNext&moduleDetail=undefined&pgtype=Multimedia

#45 Out Of Work CEO, Will Travel on 07.03.19 at 7:14 pm

AirBNB charges a cleaning fee and a service or booking fee. AirBnB is not cheap and your hotel is in the service business so you get service. You check into a hotel and “no worries”. AirBnb hits you with millineal kfetchs like “living wage” like guilting you for renting their joint. Dave Bodett at Motel 6 said on the phone he would live the light on for ya.

#46 Doc on 07.03.19 at 7:25 pm

I love my life in Canada. Everyday I’m grateful for health and relationships. I worked very hard and long doing work I believed in and now enjoy retirement and a comfortable lifestyle in a beautiful environment. My wife and I have benefitted from the reduction of stress related to earning a living and now find lots to do in the garden, spending time alone and with friends, enjoying meals and conversation, visits from family and friends and walks with our 5 year old Airedale.

I can learn anything I want, listen to any podcast I fancy and putz around doing my own projects. I don’t need to obsess about the portfolio as that is managed well by our hosts team. Thanks Mr. Turner. I know lots of lovely older people and even youngsters feeling much the same. Of course the world as represented by media seems to be an awful place but that’s not been my personal experience. For example, In August a lovely neighbour will look after watering our garden for a week and another neighbour will come to tend to the chickens while I drive and ferry with my lovely bride to celebrate and splurge on our anniversary at the Empress hotel in Victoria, visit the parliament building, museums, and Butchart gardens. We then travel to Ucluelet to check out the walking trail along the Pacific and enjoy all the great places out in that gorgeous place for a few days. I’m so grateful for the ability to do so.

This life we share is the good life. Its important to celebrate just being here. Lets make the world a little better by being nice to each other. It doesn’t cost anything and we all need a break or a little vacation from negativity. This country like any other is full of people who love each other and do their best with what resources and talents they have. Lets appreciate that.

#47 Paul on 07.03.19 at 7:34 pm

I don’t usually like contests.

https://www.youtube.com/watch?v=BwH__x6jV6A

#48 mike from mtl on 07.03.19 at 7:35 pm

#25 Dolce Vita on 07.03.19 at 5:04 pm
…..
The more I read you posts Garth, the more I come to appreciate HOW WELL RUN Québec is when it comes to caring about its people and the affordability of a home for them to live in….
//////////////////////////////////////////////////////////////////

We certainly have our own issues but often it seems QC is the one asking tough questions. Immigration, cultural protectionism, and housing.

That ‘short term rentals’ law makes a lot of sense. Basically you rent out a non-income property (i.e. not a MDU/Duplex/Triplex) you are a business. Pay your damn taxes like the amateur triplex guy in Montreal Est. It is plainly obvious AirBNB is a marketplace to skirt around existing taxation and wishy washy RE laws.

They’re not banning or saying you can’t do it, just declare and pay up like everyone else.

Loads of condos that hardly fulfil the needs of shelter especially at current asking prices, only make sense to the flippers and AirBNBs.

#49 wallflower on 07.03.19 at 7:37 pm

so many things… but here is what I sent to my councillor this week:

We are in a vicious loop on the problem of winter salt.
How do we solve this atrocity on our environment?

I live in a condo property where OBSCENE amounts of salt are SLATHERED on all pedestrian walkways and parking areas.
OBSCENCE
Nobody likes this salt. Not the residents. Not the property cleaners.

Why is this happening? Lazy references to liability.
WE MUST FIX THIS PROBLEM. IT IS A BIG PROBLEM.

I am thinking that just possibly the fastest growing segment of home creation in Ontario is condo style – so as these buildings propagate, the rate of salt usage increases at a much faster rate than pure SFH development where homeowners can take control over their salt application.
As a homeowner, I am helpless, living in a condo, to do anything about this mess we are creating and growing.

Where are the bylaws for condominium properties? Where are the discussions with insurance associations and liability?
Where is the oversight and compliance for any of it? Where is my Salt Officer?
These buildings were built adjacent to the so-called “Eco” marsh. These marshes will be DESTROYED by the salt coming out of these properties…

#50 Felix on 07.03.19 at 7:47 pm

The scourge. So true.

The planet is wallowing in too many stupid canines owned by the lowest echelon of humanity, disturbing innocent (and soon to be brilliant) kittens.

What the pic does not show? Seconds later the dumb mutt ran into a fence and knocked himself out. The much brighter little cat was purring and rolling with laughter.

#51 akashic record on 07.03.19 at 7:50 pm

I hope Dorothy is masquerading as “blog dog Ron” to set you free from the daily chore, now, when you could really enjoy more the ocean.

#52 Salt on 07.03.19 at 8:15 pm

#49 wallflower – Sorry for your salt condition, and this can be corrected. On the other hand, if the whiteness is due to calcification throughout the concrete structure of a property this might be lime. In this case the cement was not mixed correctly, and its a cheap build, and will begin to fall apart.

#53 yorkville renter on 07.03.19 at 8:15 pm

I have no problem with Air BnB when it’s to fill up your one underutilized property – like a cottage, cabin, chalet, or condo in FLA – but there are definitely professionals in the game. Some pros are owners, many are contractors managing other people’s properties.

If each user was limited to only 1 property per city, there’d be far fewer listings and less tax evasion too

#54 Phylis on 07.03.19 at 8:21 pm

Jump to the comments… and my votes goes to SM. No need to even read it, it’ll be awesome. Garth, stop shaking your head.

#55 Stan Brooks on 07.03.19 at 8:35 pm

Air BNB hosts pay no taxes, there is no way the french villa horse face guy will catch them, he is after the doctors and small businesses, it is liberal ideological mess like the one with the pipelines.

2.5 k monthly for a condo in GTA is way too much, the people get squeezed and pressured more and more just to live somewhere, eat something (most likely GMO or growth hormones soaked crap) and have to sell assets or go deeper in debt just to survive, with no retirement and the street and the garbage bins waiting for them.

In the meantime the incompetent and clueless BOC BOSS is spewing his verbal diarrhea and forces policies that enrich the banks, no doubt there is nice ‘adviser’ position waiting for him in the private sector after he is done with the retirees and savers.

The number of people with means to invest in this ‘squeeze and screw you’ economy is very limited and consistently shrinks with time.

BTW the Air BnB model is not bad (of course taxes have to be paid but good luck in enforcing that with the horse face french villa guy in charge of finance) , completely in line with the open economy and much better choice than a crappy hotel room. The reason for higher rents is not Air BnB, it is the constant willingness of the herd to sacrifice it’s time and life for a substandard, zombie-fied life, crowded in the big cities and constantly drunk or high on pot.

Watch out the criminal rates trend, it is not good.

#56 Paul on 07.03.19 at 8:36 pm

46 Doc on 07.03.19 at 7:25 pm

This life we share is the good life. Its important to celebrate just being here. Lets make the world a little better by being nice to each other. It doesn’t cost anything and we all need a break or a little vacation from negativity. This country like any other is full of people who love each other and do their best with what resources and talents they have. Lets appreciate that.

______

I appreciate your post. Reading through the comments, I’m not so sure this country is full of people who love each other – but it’s a good sentiment. Also, ties in to the importance of the common good which I think this blog entry addresses.

Cheers,

Paul

#57 Cici on 07.03.19 at 8:36 pm

“That means the average host is earning $14,140 annually from a unit that could potentially bring in $30,000 a year from a tenant.

What are these people thinking?”

——————————————————————————————-

My bet is that they’re speccers who bought the units with the ultimate goal of flipping them for tidy profits and they’re just using airbnb to buy time and help pay for the holding costs until they get their desired sale price.

#58 Hawk on 07.03.19 at 8:37 pm

While I have never used AirBnB (in either a landlord or tenant capacity), I wish them luck.

Go for it guys! There’s nothing better in the world than the “free market” and nothing worse than communists and monopolists. Go kick the living crap out of high priced hotels and guest houses.

Devolve power down to the individual and the small business guy as much as you can.

Same for Uber and the other ride sharers!

And except for the fact that I think Bitcoin is a scam, I’d support that too.

#59 NoName on 07.03.19 at 8:59 pm

press play

https://www.npr.org/sections/money/2019/02/28/698763891/episode-897-new-orleans-vs-airbnb

#60 Gas Companies paying You Off Greedeau? on 07.03.19 at 9:01 pm

So I guess we are getting gouged by the gas companies; https://thetyee.ca/News/2019/06/28/Vancouver-High-Gas-Prices-Lack-Of-Competition-Gouging/

#61 NoName on 07.03.19 at 9:06 pm

North pole is melting or is it.

https://www.npr.org/2019/07/02/737993673/arctic-fox-sets-record-in-walking-from-norway-to-canada

#62 Mike on 07.03.19 at 9:28 pm

Those wanting the gooberment to intervene are truly pathetic. The government has never solved a single issue, only created them. Market forces saw the explosion of AirBnB and now that it’s an oversaturated market, you’ll see an implosion on its own.

As one poster stated, the CRA is always years behind, but they don’t care as it gives them time to research, study and investigate. One guy I know got pinched by the CRA for selling hockey cards on eBay in the early 2000’s. $40,000 in interest and penalties later, he was set free from debtors prison.

The free market will always find a balance. A regulated, bureaucratic market will see extremes.

#63 brian1 on 07.03.19 at 9:31 pm

There will soon be an Airb&b IPO introduced. Do you think they will do well?

#64 MF on 07.03.19 at 9:46 pm

62 Mike on 07.03.19 at 9:28 pm

“The government has never solved a single issue, only created them”

-I’m all for lean, efficient, productive government.

But that statement is categorically wrong.

Pick up and read a book about the industrial revolution to see how stupid your hyperbolic statement is.

MF

#65 MF on 07.03.19 at 9:51 pm

#56 Paul on 07.03.19 at

No country on planet earth is “full of people who love each other”. It’s impossible.

However I do think that most Canadians realize we have a good thing going, are pretty lucky, and that the common good is desirable for the country (all sides of the political spectrum will debate how to get there though).

MF

#66 saskatoon on 07.03.19 at 9:55 pm

garth,

you are wrong about airbnb in at least two ways:

1. airbnb offers host protection insurance (though it isn’t by any means fully comprehensive)

here’s a link for you to learn:

https://www.airbnb.ca/host-protection-insurance

2. short-term airbnb rentals (for the most part) generate MORE revenue than renting long-term…your stats are incorrect (hint: try gleaning from a better site)

#67 millmech on 07.03.19 at 9:55 pm

#58 Hawk
Do not worry, CRA will assume 100% rental rate so that is about $50k/yr(Toronto) that tax is owing on plus penalties equal to amount of tax owing and interest at 1%/mth compounded monthly. This will add up quickly, do the math at $15k/yr in taxes plus possible $15k in fines at 1% /mth, compounded monthly for at least 5 years, have fun(by the way the air bnb owner will have to prove their innocence).
Remember fraud to the CRA has no statue of limitations , they can get you many years later and apply fines and interest retroactively.
This is easy money for the Government!

#68 IrishRose Seen it All on 07.03.19 at 10:40 pm

I was waiting for this topic Garth! This whole scenario of low Vacancy Rate in nearly every small and big hub in most parts of Ontario, timed along with adding AirBnB into our World, is no fault of AirBnB. No sir, the answer lies in a few words:

An Over Regulated Rental Market industry controlled by the provincial government with many years of changes to the LTA (Landlord and Tenant’s Act of Ontario), (and in Southern Ireland) weighted position against Landlords.

I dare say Garth if you sat in on a few Tenancy Tribunal cases, you would be very disappointed with the Tribunal Judges. It is ludicrous that the tables have turned legally against the status of “Landlords”, favouring Tenancy right from the get-go…..oh yes those heavy penalties can take the breath out of any amateur Landlord who by default forgets to dot an “i” or cross a “t”. Any sane property owner that gets involved with heavy handed regulatory body is playing with fire.

By contrast the Residential Property Management industry in Ontario is Not Regulated making for lots of cases that get thrown to the Tenancy Mitigation Tribunals.

The winners of the over regulated rental industry is in both growth of Paralegal Workers and the Legal Eagle’s filling their pockets with profits of an industry that is over run with Tribunal Case work and Small Claims Court.

Rent Control found in any of our Provinces chase an Owner of a property(s) with the aggressive financially penalizing system to snare Landlords

No Garth, it is not AirBnB that is robbing the availability of house rentals, but the force of nature that governments create with enforcing excessive regulations, protocol processes, and penalties that have been thrown at Landlords.

K.I.S.S and stay away from renting houses in Ontario. Rob Ford if your listening should review the mega changes of the LTA system in place and revert back to a fair balanced lighter regulatory body….and please do Regulate the Property Management to bring in some professionalism! Maybe Garth you might have a contact within the political arena that could Wake- Up Hellooo of why there is a shortage of rental vacancy’s. Bring Supply back of homes by De-Regulating in places that are ineffective, damaging, and over penalizing to Landlords and by doing so create Rental housing supply competition. That will weed out lousy Landlord’s and their run down properties!

#69 DON on 07.03.19 at 10:54 pm

Only 500 words…just a small rant.

#70 Nonplused on 07.03.19 at 11:37 pm

I’d be up for the challenge but hmm, what topic? I normally comment when Garth goes political or social, there isn’t much to add to his personal finance advice.

I wouldn’t want to use my actual name or photo but I could use Nonplused and a picture of my dog.

I could maybe do a piece on the challenges we face moving away from fossil fuels, which has to be done whether climate change is a thing or not, but I don’t know if I can keep it to 500 words. It’s not simple.

I could do a piece on how working for the man is a tough way to make serious coin, you need to take risks. Asymmetric risks that go in your favor where possible.

I could do a piece on how one should not expect their income to be static or constantly rising, and that many people drift in and out of the 1%, so don’t finance expensive things assuming you will never be laid off or get sick, or your stock options will never become worthless.

I could do a piece on how much money you can save by buying things like cars and boats and motorcycles and RV’s used if you insist on having them. Countered by how much it still costs to insure and operate them even if you buy them used.

I could do a piece on how important it is if you don’t have a pension plan to top out that RRSP, or at least top it out as much as you can after you have topped out your TFSA. And how other spending must be curtailed to make this happen. How you have to get used to the lifestyle you can actually afford.

I could do a piece about how bad of an idea financially it is to get divorced, for both parties. Without touching on what it does to the children even though this is much worse that the money. A side theme will be how marriage and particularly who you marry will be the most important decision you will ever make, if you chose to do it.

I could speak to the millennials about student loans, since I have 2 in my care, and discuss how student loans are like baseball bats, useful on the diamond but not at an Antifa rally. And I could also discuss how if I ever found out they were at an Antifa rally they would be disowned.

I could maybe do a piece about how a lightly used Toyota Corolla is the absolutely best vehicle a young person could buy, and a BMW is the worst.

I could do a piece about how even after you get the degree, you start small and work up. The degree does not buy a senior position anymore (if it ever did), because everyone has one. You have to prove yourself. That includes overtime.

I could do a piece on why cheap shampoo is just as good as expensive shampoo and cheap whisky is just as good as expensive whisky and a cheap golf course is just as good for the vast majority of us as an expensive one, if you can even justify golfing at all.

I could do a piece on why Harleys are like Porches. Only Porches are fast.

I could go on. But I don’t thing Garth missed any of these topics.

#71 AGuyInVancouver on 07.03.19 at 11:41 pm

“The Sharing Economy” – Retch

Nothin’s being shared if you’re paying for it.

#72 Hawk on 07.04.19 at 12:07 am

#67 millmech on 07.03.19 at 9:55 pm

======

Thanks I’m not worried since I don’t do Airbnb, have declared my income from long term tenants and paid taxes as calculated. I’m simply opting out of the residential RE business completely as per an earlier post.

I suspect that renter parasites (are you one?) may have a bit to worry about since “tent cities” and “RV /car living” is picking up speed all over North America, an amazing coincidence, to be sure :-)

…..and then there’s the minor detail that inner city cops are adding more excitement to their lives, than anything you imagine CRA can or will add to AirBnB landlords (many of which I suspect are corporations)

RIP – residential rents market!

#73 Smoking Man on 07.04.19 at 12:39 am

Big fireworks and beach party tomorrow night in Laughlin.
Friday off to Vegas.

More periscope clips of young hotties in the pool. I may be old but my audience is young. I’m an entertainer.

Happy 4th of July my American budds.

Made more real freinds in the last 1.5 years in SoCal than 58 years in fake Canada were people let their things talk for them.

Its different down here. Insane drunken people. I fit in real good.

In all our Sons Camand.

#74 Smoking Man on 07.04.19 at 1:01 am

22 TurnerNation on 07.03.19 at 4:24 pm
Cobble some Deleted Smoking man posts together and voila a new post. Easy.

Lump in .004% of the trans population that will be pissed at my deleted posts.

Dont blame Gartho for shitting in his cowboy boots.

The coward never discovered the freedom Walmart flip flops give you

Made in China by the way.

Go Trump. I love you man.

#75 jane24 on 07.04.19 at 2:28 am

I have 2 overseas AirBnBs which I can update you on.

The first is our own holiday home in Italy which we AirBnB each year for just enough to pay the bills. I don’t know how long this will continue though as AirBnB has become very very mainstream and our little Italian non-tourist town of Irsina, pop 4000, has 35 AirBnB homes at present far more than is needed. We are not Venice. A lot of both expats and locals jumping late onto the bandwagon but then our little town has no hotels. The only one was taken over by the Italian govt to house migrants to local fury but the enrichment of it’s German owners.

Then we have a family bungalow in Southampton on the south coast of England that we didn’t want to sell, at the time the RE market was bad and didn’t want to put permanent tenants in case we got a chance to sell so we put it on AirBnB. Business to date has been good as it is close to a major sports venue, Cricket World Cup happening as I type. But the number of AirBnBs around us has exploded this year as latecomers chase the presumed golden goose. Far more competition. The business looks lucrative when you consider the nightly rate but these places are empty more than they are full and bills have to be paid every month. Our home has 3 to 4 car parking and we love dogs so that gives us competitive advantages but a lot of the new hosts will hurt. Not an easy business. Guests are getting very fussy.

We declare all our income but the last times we did AirBnB in Canada the Toronto host wanted us to pay the money into an Irish bank account in another name. The Montreal host wanted something weird done with the payment too but I can’t remember the details. it will be vary hard for Canadian govts to account for such income in a global world.

AirBnB is peaking all over the world. Internet businesses always rise and fall. We aim to be in the surviving remnant.

#76 The Great Gordonski on 07.04.19 at 2:35 am

DELETED

#77 Buford Wilson on 07.04.19 at 5:12 am

Airbnb, along with Uber, is the best thing since sliced bread Garth.

Let your old friend Mr Market determine who can rent out their house.

#78 BillyBob on 07.04.19 at 5:37 am

#77 Buford Wilson on 07.04.19 at 5:12 am
Airbnb, along with Uber, is the best thing since sliced bread Garth.

Let your old friend Mr Market determine who can rent out their house.

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

Sounds good.

But Mr. Market works best when all participants are subject to the same rules, so I assume you wish AirBnB hosts to be taxed, regulated and licensed the same way as the current market participants, hotels?

Oh wait – then the parasitic, I mean, “sharing”, advantage would be lost. Oops.

#79 Howard on 07.04.19 at 6:42 am

In case you missed it, Vancouver June stats are out.

https://www.rebgv.org/market-watch/monthly-market-report/june-2019.html

Benchmark now below $1 million for the first time since May 2017.

Spring market seems to have been a bust. I guess Fall is now the hope for a turnaround? Because if it doesn’t happen in Sept/Oct, the winter is going to be very very painful.

#80 The Great Gordonski on 07.04.19 at 6:44 am

Is law and order breaking down or actually broken into criminal disorder under Trudeau?

https://canadiandimension.com/articles/view/trudeau-and-snc-lavalin-of-hosts-and-parasites

Your comments are growing more extreme and useless. Suggest you find another forum to pollute. – Garth

#81 crossbordershopper on 07.04.19 at 6:59 am

i always didnt understand who would rent their home to a stranger for a small fee. but people do it and the european idea has taken hold elsewhere.
go for it, who cares about rules, or taxes, everyone knows drug dealers and escorts all used homes in the burbs for their meetings.
disruption is good, well most times, still wouldnt open my door to a stranger, there are people i know that i wouldnt want to enter my house. thats what i dont understand

#82 Captain Uppa on 07.04.19 at 7:56 am

GTA RE sales uppa, Uppa, UPPA! Listings downa, Downa, DOWNA.

Prices UPPA.

#83 Hamsterwheelie on 07.04.19 at 7:56 am

I don’t understand why ya’ll think Airbnb income isn’t claimed? It gets deposited directly into my bank account and is therefore easily traceable. Surely as traceable as any other income I make from depositing cheques etc?
Do allllll of you have good jobs where taxes are deducted at the source? I do not and have not for approx 20 years now so stop worrying about what some landlord isn’t claiming. (Perhaps start a campaign to get Bezos or Amazon et all to pay any taxes into our fair land)
We have one Airbnb that currently has 2 doctors in training doing their rotation at the nearby hospital – wheelchair accessible and short term, allowing us some flexibility with visiting friends or family (since we downsized and live in the same building)
I agree that there are folks abusing the system by having too many units and as a result, completely unable to oversee them to a proper standard or monitor behaviour.
Some of those stats may be a bit skewed too – we list ours as a seperate and complete unit because it has no shared areas but it is inside our shared/ 4 plexed house.
I think there are people who do want an on site host who knows the area and actually guide them, or help if needed.
Our houses had boarders/lodgers back in the 30’s – 50’s – that model seems to work ok vs the absentee landlord which is a $hitshow for long or short term rentals IMHO.

#84 dharma bum on 07.04.19 at 8:08 am

I’ve never used Air BnB, but I have used VRBO and Homeaway (I think they’re merged now) for about 12 years or more.

Is there a difference between these companies (providers of privately owned short term vacation rental properties including personal residential properties)?

Since discovering VRBO many years ago, I have rarely ever used a typical hotel for vacation accommodation.

The vast choice of properties in great locations, providing comfortable spaciousness with myriad amenities (well equipped kitchens, multiple bathrooms, stunning views, private parking, etc.) has made avoiding the typical overpriced, under serviced hotel a no brainer.

For one-nighters on the road, Holiday Inn Express or Comfort Inn will do (barely), but for multi-day stays, one cannot beat the private residence model.

However, back to my original question: Is there a difference between VRBO/Homeaway and Air BnB?

Everyone seems to trash and disparage Air BnB, but I never hear any mention about VRBO in that context.

#85 crowdedelevatorfartz on 07.04.19 at 8:13 am

@#68 Oh Bouy

“lol, folks just see what they want to see.
this comments section being a prime example”
+++++

Denial is not just a river.
:)

#86 n1tro on 07.04.19 at 8:41 am

What’s wrong with the world? People take too long to learn from their mistakes and/or are too lazy. The kid at work I posted about who gambled on AMRN and hodl’ed (Held On for Dear Life) for 6 yrs to end up gaining over $300K in capital gains just recently paid CRA $51K in taxes for the portion of stocks he sold.

When asked if he will transfer the balance of his new wealth into RSP or TFSA accounts, he said no. Didn’t want to go through the “hassles” of it all.

When asked if he was going stick his wealth in some diversified funds to get passive income, kid’s response was that $300K wasn’t enough. His plan is to hodl for $1M in hopes AMRN is bought out.

¯\_(ツ)_/¯

#87 Stan Brooks for PM on 07.04.19 at 9:55 am

#55 Stan Brooks on 07.03.19 at 8:35 pm

Stan, please enter the 500 word essay contest. You are a cinch to win it. This blog needs more of your common sense and down to earth wisdom. Start typing!

#88 housepoor on 07.04.19 at 9:57 am

Eight percent of Canadian families have less than $500 in net worth
https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019003-eng.htm

#89 LP on 07.04.19 at 10:20 am

#85 seen on a sign at a farm-gate market: we don’t see things as they are but as how we are.

#90 LP on 07.04.19 at 10:31 am

#70 I think you just did a piece on pieces. Your submission is pretty good.

#91 Howard on 07.04.19 at 10:34 am

#82 Captain Uppa on 07.04.19 at 7:56 am
GTA RE sales uppa, Uppa, UPPA! Listings downa, Downa, DOWNA.

Prices UPPA.

——————————————–

Detached down again and STILL down significantly from their highs 2.5 years ago.

Now it’s a betting game. The differential between condos and detached cannot narrow indefinitely. Either detached have to rise or condos have to drop. No one knows which it will be.

#92 Shawn Allen on 07.04.19 at 11:01 am

Brutal math

#87 housepoor on 07.04.19 at 9:57 am noted:

Eight percent of Canadian families have less than $500 in net worth

https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019003-eng.htm

************************
Simple math requires that for every dollar one family has above the average level of net worth another family must be a dollar below the average.

Therefore should we blame all of us who are well above average in net worth for the plight of those far below the average and even below zero? Think how many families must be far below the average in net worth to make up for the mega rich families like the Westons and many other corporate families! (I’m kidding, but that is in fact the math)

Frankly 8% with negative net worth ($500 rounds to zero) sounds extremely low. Many people leave university with a negative net worth but very bright futures.

#93 Hawk on 07.04.19 at 11:21 am

#83 Hamsterwheelie on 07.04.19 at 7:56 am

========

This myth that people in the business of residential RE don’t declare income and don’t pay taxes is just that, “a myth”.

Reality is most residential rentals involve leases, first and last monthly payments, key deposits etc, all of which get done through the banking system. Only a small percentage of people risk doing all cash deals. No one I know, does that.

People don’t understand that the only reason this business has worked so far is the good capital appreciation on these assets.

That’s coming to an end, with the current market cycle and sooner or later, even the dumber landlords will figure it out and take their investment capital elsewhere. Then watch what happens to rental stock.

Ross Kay does a good job of explaining how RE market cycles work, check him out on howstreet.com

#94 Jesse on 07.04.19 at 11:32 am

Big fireworks and beach party tomorrow night in Laughlin.
Friday off to Vegas.

More periscope clips of young hotties in the pool. I may be old but my audience is young. I’m an entertainer.

Happy 4th of July my American budds.

Made more real freinds in the last 1.5 years in SoCal than 58 years in fake Canada were people let their things talk for them.

Its different down here. Insane drunken people. I fit in real good.

In all our Sons Camand.

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

I’ve noticed after spending more and more time in the US, that Americans are friendlier and more social than Canadians. Try chatting people up in Canada in public or at a bar/restaurant and people will look at you like you’re some kind of alien. Canada’s people are becoming insular and cold. Why?

In the US you can talk to people almost anywhere about anything, and you’ll likely get a positive response. Even when I’m abroad, I prefer to talk to Americans, as Canadians tend to act smug. When did we become too cool for school?

#95 Shawn Allen on 07.04.19 at 11:34 am

Canadian Exports Surge

Despite much gloom, Canadian merchandise exports surged in May – up 8.6% year over year. Trade surplus!

https://www150.statcan.gc.ca/n1/daily-quotidien/190703/dq190703a-eng.htm?CMP=mstatcan

Table 2 really shows it well:

https://www150.statcan.gc.ca/n1/daily-quotidien/190703/t002a-eng.htm

These things are volatile but any way you look at it, this was good news.

Doomers wrong again. Better luck next month.

#96 Captain Uppa on 07.04.19 at 11:46 am

>>#90 Howard on 07.04.19 at 10:34 am
#82 Captain Uppa on 07.04.19 at 7:56 am
GTA RE sales uppa, Uppa, UPPA! Listings downa, Downa, DOWNA.

Prices UPPA.

——————————————–

Detached down again and STILL down significantly from their highs 2.5 years ago.

Now it’s a betting game. The differential between condos and detached cannot narrow indefinitely. Either detached have to rise or condos have to drop. No one knows which it will be.>>

Prices down 1.4% in GTA from last year, yes. Sales up around 20% for detached. Garth once said, follow the sales volume momentum.

Further to that, why not compare RE to 5 years ago? 10 years ago? What’s the difference in price then? I would wager quite high in the black.

This whole comparing to 2.5 years ago is not a good measure. Look at the longer term. 2.5 years ago means nothing, unless you are a quick flipping speculator. In that particular case I shed no tears for thee.

#97 Bob Dog on 07.04.19 at 11:50 am

Yet interest rates are still at emergency levels as the stock market hits an all time high.

Central banks are the scourge of humanity. Air n&b is just a symptom of the disease.

Bankers, not the media are the enemy of humanity.

#98 Flop... on 07.04.19 at 12:01 pm

I’m pretty sure Tom Hanks starred in a movie about this.

Think it was called Big…

M45BC

How Big is Apple? This Visualization Puts Things Into Perspective”

Apple in 2012 became the most valuable company in history, with a market capitalization of $621 billion. Its upward trajectory didn’t stop there: in 2018, Apple reached a market cap of $1 trillion. While it’s cooled off at times since then, sometimes dipping below $1 trillion, it’s undeniable that Apple is a big company in terms of valuation. It’s hard to take in this large of a number, so let’s put it into context with the value of other entities.

Tech giant Apple hit a $1 trillion valuation in 2018

A recent, lower valuation dwarfs not only other corporations but also entire economies and markets

Apple faces mounting obstacles toward continued growth such as declining iPhone sales and trade tensions with China

Apple is Bigger than These Things

20.1 times bigger than the net worth of the two wealthiest narcotic dealers combined ($44.0B)

17.3 times bigger than the market capitalization of General Motors ($51.1B)

6.4 times bigger than the Bitcoin market ($137.9B)

6.4 times bigger than the inflation-adjusted domestic gross earnings of the top 300 movies ($138.5B)

4.9 times bigger than the market capitalization of Nike and Adidas combined ($182.2B)

3.8 times bigger than the entire cryptocurrency market (including Bitcoin) ($232.8B)

2.1 times bigger than the market capitalization of Alibaba ($416.2B)

2 times bigger than the net worth of the top five richest people combined ($450.0B)

2 times bigger than NASA’s budget since 1998, adjusted for inflation ($451.3B)

1.6 times bigger than the market capitalization of AT&T, Verizon, T-Mobile and Sprint combined ($559.3B)

1.3 times bigger than the value of McDonald’s, Dunkin, Coca-Cola, Starbucks, Domino’s and Pepsi combined ($677.6B)

1.3 times bigger than the US Department of Defense’s 2019 budget ($686.0B)

1.2 times bigger than the market capitalization of Alphabet (Google’s parent company) ($750.8B)

1.1 times bigger than the GDP of the Netherlands ($830.6B)

1.1 times bigger than the GDP of 25 countries in northern Africa ($839.4B)
So, what’s next for Apple… $1.5 trillion? $2 trillion? Will it maintain the most-valuable slot? Only time will tell, but already Apple no longer has the distinction of the only trillion-dollar company: Amazon and Microsoft have joined the club.

Even so, a trillion-dollar valuation of anything is exceedingly rare, and that includes entire economies and industries. Even at a weaker valuation of $886B, very few entities can compete. Our visualization includes everything from Netherlands GDP to the entire cryptocurrency market. Ironically, the iPhone maker is even far more valuable than all of the major U.S. cell phone carriers put together. It’s even a full $100 billion more valuable than Google, the maker of the rival Android mobile operating system, among so many other dominant tech products.

While Apple has beaten recent earnings estimates, it faces a series of obstacles toward future growth. Apple’s shipments in iPhones fell by 30% in Q1 2019 over last year. There’s also growing competition: Apple now holds 11.7% of global smartphone market share, down 25%from just a year ago. Along with its decline in market share, the overall market for new phones appears to be declining, at least in the U.S.: Verizon and AT&T have reported record-low phone upgrades. Growing trade tensions between the U.S. and China is another risk: a Goldman Sachs analyst estimates that Apple’s earnings would drop by nearly 30% if China bans Apple products.”

3 July 2019

Visualization

https://howmuch.net/articles/putting-apple-into-perspective

#99 meslippery on 07.04.19 at 12:06 pm

When the Air BnB next door is full refer them to me.
Off the radar cash only.

#100 Dogman01 on 07.04.19 at 12:06 pm

Hi Garth

Are you up for a new project?

“clean rooms – fine food – potable spirits”

http://www.century21.ca/Property/AB/T0C1M0/Halkirk/102_Main_Street?utm_source=realestate.mitula.ca&utm_medium=referral

Price is right and place looks like good bones.

However geography means making a go of it is likely not in the cards.

https://www.cbc.ca/news/canada/calgary/alberta-oil-gas-coal-wind-power-halkirk-1.5194320?cmp=rss

#101 Not 1st on 07.04.19 at 12:13 pm

Nice federal funding announcement for Montreal transit courtesy of AB equalization money. enjoy while it lasts

Truly ignorant. – Garth

#102 Remembrancer on 07.04.19 at 12:19 pm

#84 dharma bum on 07.04.19 at 8:08 am
I’ve never used Air BnB, but I have used VRBO and Homeaway (I think they’re merged now) for about 12 years or more.

Is there a difference between these companies (providers of privately owned short term vacation rental properties including personal residential properties)?
————————————————-
The lines are blurring, but if you look at history, they started with similar but different business models: AirBNB was focused on more sharing of accommodations i.e. renting out a spare room to a traveller while you are still there – hence the BnB moniker and tie to the origins of the “sharing economy” – sharing your stuff with others for a fee to help pay for the stuff, especially when you weren’t using it… VRBO started more as a vacant vacation property rental list platform to list properties like cottages, condos in resort areas etc, sort of a reverse time share arrangement…

Once this sort of thing gets into the wild it morphs as the market provider iterates – hence airBNB listings of purpose bought condos now is probably more the norm…

#103 James on 07.04.19 at 12:20 pm

I’m sure that the weird sociopathic orange baby south of us will mess up the July 4th celebrations by opening his rather tiny mouth and spewing out narcissistic lies about how great things are. These will all be touted without supporting data, evidence or anything of any tangible meaning. He just opens him mouth and the garbage comes out the chute.
Just to keep it real, Trump did not start the greatest economic expansion! That started in June of 2009. Now who was running the country at that time? President Obama that’s who. When did he leave office? the 20th of January 2017. Who assumed office on that same day? Donald J Trump. So the longest economic expansion in USA history was already 7 years and 7 months old when Trump took over. It could only get better correct? I mean Trump has been massaging the economy for a whole 2 years and 6 months now. Trump did all of this on his own according to him. So glade he has concurred time and space by traveling back in time and starting all of this. He should have returned to 2005 and never done the Access Hollywood Tape, but then again America still elected the pu$$y Grabber.
Happy 4th of July to the people of the United States of America.

https://www.economist.com/graphic-detail/2019/07/02/americas-economic-expansion-is-now-the-longest-on-record

#104 Ubul on 07.04.19 at 12:39 pm

#84 dharma bum

There is no real difference. AirBnB started later at a more advanced technical infrastructure, app, top of the line visual presentation of the inventory. It is a darling startup, hyped in the media.

The attraction of AirBnB and the others is exactly what you described. It fills a real need, beyond a simple room, that hotels don’t provide or at a cost which is not affordable for most people.

#105 Toronto Rocks! on 07.04.19 at 1:16 pm

Airbnb thrives in Toronto because everybody with a brain wants to come here!

We are the centre of Canada and the world class city others can only dream of.

And Kawhi will stay because he knows it!

#106 jess on 07.04.19 at 1:23 pm

17 Citizen on 07.03.19 at 3:39 pm

the “sharing” economy in a selfie world what a paradox!

==========

…”For three years, a sleek 21-meter yacht moored in Porto Montenegro, an exclusive marina on the Balkan nation’s Adriatic coast. But documents obtained by OCCRP suggest that the boat was more than just a pleasure cruiser for the rich: It was a vessel for moving money of dubious origin via inflated yacht rental fees.

Between 2010 and 2012, Asti Services Ltd, the Belize-registered company that owned the yacht, paid moorage fees to the Montenegrin marina, which advertises itself as a “yachting paradise.” Over that period, the company reported receiving yacht rental payments of 3.1 million euros (US$4.2 million) from two British Virgin Islands (BVI) companies whose beneficial owner was a key organizer of the infamous Magnitsky tax fraud in Russia.”

Dmitry Klyuev, a banker who was convicted of fraud in Russia in 2006 and sanctioned by the United States in 2014 for being the “mastermind” of the massive scheme exposed by Magnitsky to defraud the Russian government of unearned tax refunds.

https://www.treasury.gov/press-center/press-releases/Pages/jl2408.aspx

read more @
https://www.occrp.org/en/troikalaundromat/how-russian-blood-money-flowed-into-

=========
another scourge is
criminal schemes fronted by law firms

The Curious Case of Dr. K and Mr. Chrysostomides
by Stelios Orphanides

https://www.occrp.org/en/investigations/the-curious-case-of-dr-k-and-mr-chrysostomides
28 June 2019

A senior fellow at the Alliance for Securing Democracy (ASD), a bipartisan group affiliated with the German Marshall Fund of the United States (GMF) and established in response to Russian interference in the 2016 U.S. presidential elections, said Cyprus has undergone “state capture” by its offshore financial sector.

#107 PoorEngineer on 07.04.19 at 1:26 pm

The government doesn’t need to do anything to Airbnb.
All they need to do is get rid of “Residential Tenancies Act” and then the problem will correct itself.

As Garth pointed out, landlords could make double if they rent to long term renters vs overnight crowd. Plus, they don’t need to clean it every time the visitor leaves.

HOWEVER, the one-sided RTA makes it so landlords would rather go through the hassle of doing more work, taking on more risk and cutting its profit in half, instead of renting it out to folks who might never leave.

So Mr Turner, the problem isn’t Airbnb; it’s the draconian RTA

#108 crowdedelevatorfartz on 07.04.19 at 1:34 pm

@#93 Jesse
“I prefer to talk to Americans, as Canadians tend to act smug. When did we become too cool for school?

******

When a majority of Canadians decided a virtue signaling, politically correct, gender self neutered, “leader” …… was all THAT and more.

Seems to have lasted a mere 4 years…… thank God.

#109 jess on 07.04.19 at 2:01 pm

another NYC tower in foreclosure

Developers Of Financial District Condo Skyscraper Facing Foreclosure
New York
Construction & Dev
July 3, 2019 Miriam Hall, Bisnow New York

========
A judge has ordered a contractor with ties to a polygamous group on the Utah-Arizona border to pay more than $1 million in back wages to children who prosecutors say were forced to pick pecans from 2008-2013….The company previously argued the kids volunteered with their families to pick up fallen nuts for the needy.”

https://www.sltrib.com/news/polygamy/2019/07/03/polygamous-town/

#110 PastThePeak on 07.04.19 at 2:21 pm

#84 dharma bum on 07.04.19 at 8:08 am

However, back to my original question: Is there a difference between VRBO/Homeaway and Air BnB?

Everyone seems to trash and disparage Air BnB, but I never hear any mention about VRBO in that context.
+++++++++++++++++++++++++++++++

We have also used VRBO both as users, and as one means of how we rented a FL condo we purchased. Concepts are similar now, though as noted by others ABnB started out differently and was a native app from beginning.

My own experience is that VRBO tend to be longer term rentals (mostly 1 week plus). We owned in a building that only allowed 2 week or longer commitments, per the condo regs, as an example.

I think the AirBnB issue is that due to the use of app things can go under the radar (of condo owners, and possibly the tax man) more than with VRBO. Every place we have rented the owner was very clear on the regulations for the place we were staying, obligations, etc.

Renting houses/condos in vacation destinations for a family of 4 is definitely our preference as it is typically cheaper, and you can buy on groceries, drinks, etc.

#111 millmech on 07.04.19 at 2:25 pm

#72 Hawk
Absolutely a parasitic renter(best decision ever) lol, my one Saturday overtime shift covers all my overhead for the month; rent, hydro, water, cable, internet, all included in that monthly stipend to my landlord leaving me 70% to invest in the markets.
As for worrying about tent/rv living, not a chance, as I could just purchase the same house as I live in today if I needed to.Seriously why would I though? It would make no financial sense to wipe out a portfolio just to own something that depreciates every month, and according to the lack of sold signs in my neighborhood, is becoming very illiquid.

#112 JB on 07.04.19 at 3:03 pm

I never let my wife and baby in the elevator with a strange guy when we owned a condo. This is why. The VRBO/Homeaway and Air BnB all promote transient movement of individuals withing buildings even with security staff.?
Toronto police on Thursday released video of a violent robbery inside a condo elevator in the Deer Park neighborhood.

The alleged assault and theft occurred around 11:20 p.m. on June 1 at a residential building in the area of St. Clair Avenue West and Avenue Road.

https://www.youtube.com/watch?time_continue=50&v=s2mnBTSY1DU

#113 Headhunter on 07.04.19 at 3:33 pm

In the US you can talk to people almost anywhere about anything, and you’ll likely get a positive response. Even when I’m abroad, I prefer to talk to Americans, as Canadians tend to act smug. When did we become too cool for school?

—————————————–

haha truth drop! just in the 416 and vancity mainly I find.. why do you think our kind scribe calls is “GODless Toronto”

Cue MF.. “EVERYONE WANTS TO LIVE HERE”

#114 My Name is Caleb on 07.04.19 at 3:47 pm

“renters’ choices have been halved. …. This is a disease”.

P.E. Trudeau once said, “there’s no place for the state in the bedrooms of the nation.” ……..I say there is no place for the state to decide who lives in the homes I own. Let’s hope that Canada does not adopt the same posture as Ireland

#115 Marco on 07.04.19 at 3:54 pm

Well all this ‘new economies’ exist because neoliberalism and globalism do not create jobs and economy. All this new economies points to decline of western societies,
The best idea is rent apartments and rent them tru airnb.
That is better leverage than invest money in condos.
And I know a guy in Montreal who is doing just that.

#116 Marco on 07.04.19 at 4:01 pm

to #105 jess
That marina is owned by whom? And who built that marina? The most corrupted people of the world.
Canadians. Late Peter Munk.

#117 One Day Cometh on 07.04.19 at 4:04 pm

Your going to rent out your luxury condo for a few nights to stay. A delightful well dressed couple that paid in cash, and you gave them the key code. You came back to allow the cleaning person inside to get things ready for the next couple to arrive. The condo was boosted, and everything was gone.

#118 Neo on 07.05.19 at 1:31 am

It’s fun listening to greed obsessed Canadians bitch about socialism as they drive down socialist highway on their way to a socialist hospital where their child will be born and grow up drinking socialist water and putting out the garbage to be picked up by socialist city workers before heading to socialist schools and graduate to a socialist government job and retire with a socialist pension.

The only thing missing is socialist hydro power because a bunch toxic vermin decided to privatize Ontario Hydro.

How do you sleep at night?