Desire

FOMO. Fear of Missing Out. It’s almost – but not quite – as powerful as fear. Somewhere between sex and a chocolate smoothie. With sprinkles.

So yesterday we talked about financial FOMO. It looks like markets are melting up, with more new highs coming, a big Santa rally on the way putting 2019 in the record books as a mudda of a year for investors. Now that the trade war’s ending, FOMO is sucking in billions. Maybe trillions.

But, whoa, is the same now happening to Canadian real estate? While Americans stuff their 401k retirement plans with equity-heavy ETFs, this nation of beavers is once again falling in love with bricks and mortgages. That’s right – apparently we never learn.

In delusional Vancouver the market is rising above the dross and penury of a socialist, tax-hungry government with October sales up a riveting 45% from last year. This is even 10% ahead of the decade-long average, and notable since a massive 20% tax has all but locked foreign buyers out of the market. (Maybe it was us all along. Imagine that.)

Detached sales zipped higher by 47% to average more than $1.4 million. Condo sales surged 40% and average $652,000. Overall listings fell from year-ago levels by 16%. So, more demand and less supply pressures prices. The MLS composite Frankenumber was down 6.4% to just under a million (an improvement). Detacheds grew 7.5% while condos were 6% less than last October. After fleeing more expensive properties for the last two years, money is flowing back in. The sales-to-active listings ratio for single homes has effectively doubled.

Now, the GTA seems similarly afflicted. Relieved realtors there report a 14% jump in deals last month and, as in Vancouver, a plop in listings. That pushed the average price ahead almost 6%, which was the fastest rate of growth in two years. The average property (houses, condos etc.) is $852,000 – fifty grand more than last autumn.

This means we’re almost back to the mid-2017 price record, which was the result of the FOMO Panic of 2016. Remember that? People made offers on houses they just drove past and never entered. Realtors demanded, and received, certified cheques for $100,000 when offers were presented. Buyers didn’t even look at anything with a condition attached. And bidding wars were the norm.

Well, guess what? They’re back. So is emotional buying. Plus the fear that anyone not jumping in now will never be an owner with the privilege of making monster mortgage and property tax payments.

Why?

First, mortgages are still cheap. Five-year money is available in the 2.5% range, which is insane when inflation’s 2%. Even though the Bank of Canada wisely held off more rate cuts, lenders are aggressively competing for market share. Because Canadians have no self-discipline, of course, and can’t swallow enough debt, this is too tasty to resist.

Second, we just went through a federal election where subsidizing homeowners and buyers was a central theme. The triumphant Libs have goosed the RRSP Home Buyer’s Plan, will bring in green reno subsidies, and are inflating the shared-equity mortgage plan to included houses worth up to $800,000 in the Bubble Cities. The message was sent, loud and clear: the government wants you to be enslaved and immobilized by borrowing instead of dangerously free and unpredictable. Apparently it’s working.

The risk here is obvious. We’re over-extended already. Mortgage borrowing is rising. Half of people have little or nothing left at the end of the month. Never before have so many been retiring with unpaid mortgages. HELOC and reverse mortgage debt sits at record levels. Dependency on the paltry CPP is rising fast. The savings rate is a disgrace, and a fraction of that in the US.

This is what FOMO does. When augmented by government actions the result is houses that are even harder to afford, with loans even bigger. The more people spend on real estate, the less they can invest for their financial futures. And, down the road, we all need cash flow more than a paid-off house.

But what of financial assets? Does FOMO not inflate them, too?

You bet. That’s why smart people always hedge their bets with balanced assets and lower risk using ETFs, for example, rather than buying stocks. This blog has prattled on about that for years. And been correct.

In a perfect world everyone would have a house and stuffed investment accounts. That’s won’t happen, which is why the Rule of 90 makes sense. Buy real estate if you need it. Use cheap money to get it. But still feed your TFSA, retirement or non-reg account. Never be embarrassed or demeaned as a renter. Shun greed. Man up to fear. But chocolate’s okay. And that sex stuff, too.

102 comments ↓

#1 Pamela Geller on 11.05.19 at 4:15 pm

DELETED

#2 Linda on 11.05.19 at 4:26 pm

I just shake my head at the thought that folks are falling for the so called ‘free’ money from the increased RRSP withdrawal plus the other promised government largesse. As for retiring with debt, especially if the only DB pension one will have is CPP with OAS – well, if I were to end up in that situation I would likely respond with curling up in the fetal position. Post panic attack, finding out if there were anywhere in Canada or abroad that I could afford to live given my dire financial situation. Plus continue to work if I’m capable, because otherwise I’d be scoping out the desirable dumpsters & bridge abutments PDQ.

#3 Mr Fundamental on 11.05.19 at 4:34 pm

Makes me happy that I bought a house in 2005 and have stayed there since.

Keep stuffing those investment accounts with index funds and ETFs.

#4 X on 11.05.19 at 4:35 pm

So how long for rates to rise and people to realize they have actually borrowed too much? Given all of the economic stimulus, I am somewhat surprised inflation is so low. May not be the case if trade disputes get settled and taxes are lowered further in the US.

#5 Blackdog on 11.05.19 at 4:47 pm

“But chocolate’s okay. And that sex stuff, too.”

Cannabis makes both even tastier, just sayin…

#6 The Wet One on 11.05.19 at 4:50 pm

Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.

All I’ve got is investments and real estate. That’s why I’m here every day.

;-)

#7 n1tro on 11.05.19 at 4:58 pm

#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-
Another prime example that it just may be better to rent than own?

#8 Captain Uppa on 11.05.19 at 4:58 pm

Not at all surprised.

#9 mj on 11.05.19 at 5:06 pm

I am very curious to know this answer. If you own 2 houses, you pay capital gains on the second house. But what if you are married and you put your name on one house and your spouse on the other house. Do you have to pay capital gains on any

Of course you do. – Garth

#10 FreeBird on 11.05.19 at 5:08 pm

And when the inevitable fallout happens anyone older then a millennial will be blamed. Because of course. Wait until their kids blame them. Circle of life.

#11 FreeBird on 11.05.19 at 5:11 pm

#6 maybe buy your chocolate.

#12 yorkville renter on 11.05.19 at 5:15 pm

my rent will rise 2% next year, but my portfolio will be much higher and I still get to vacation, eat out, and maybe add to my watch collection.

no property tax
no special assessment
no utilities (suckers!)

and most important… NO DEBT!

#13 Boombust on 11.05.19 at 5:27 pm

Garth, there are more to the recent sales stats in Vancouver that are worth a “mention”

Sales are up 46% over October, 2018; however,last year they were at a 21 year low and clocked in a -37.5%. Therefore sales increases are stemming from a very low base.

Year over year prices are down for the 7th consecutive month in October.

Detached prices are down 7.5% on a year over year basis; that is compounded on top of a similar drop last year.

Debt loads are at all-time highs, the provincial economy is sinking and there is no reason for some in the RE industry to suggest price gains are on the horizon.

#14 Dave on 11.05.19 at 5:34 pm

I don’t see the real estate sales in Richmond BC.

Houses have been on sale for 2 years with dramatic decreases and still are not selling. Builder takes the house off of MLS and then relists as if it’s a new listing. So many empty lots with grass 3 feet long – very little sales

#15 The Wet One on 11.05.19 at 5:37 pm

Nitro,

I’ve had the thought. But, despite my celibacy, I think it’s still the right move.

#16 IHCTD9 on 11.05.19 at 5:45 pm

#7 n1tro on 11.05.19 at 4:58 pm
#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-

Another prime example that it just may be better to rent than own?
——

Heh, heh.

C’mon Trudeau, it’s time to legalize the oldest profession (but not try to run the business, please).

#17 IHCTD9 on 11.05.19 at 5:52 pm

“FOMO. Fear of Missing Out. It’s almost – but not quite – as powerful as fear. Somewhere between sex and a chocolate smoothie. With sprinkles.“
——-

I drove past a ReMax sign this past summer. On top was posted “SOLD!”.

On the bottom was posted “Too Late!”

I imagined the too late part jeered loudly in a Swiper the Fox voice.

https://www.youtube.com/watch?v=QQAcRrMXK6g

#18 Bezengy on 11.05.19 at 6:01 pm

Electricity rates in Ontario jumped Nov 1 from 13 per kwh to 20 per kwh during peak hours, but luckily our monthly bill will only increase 2%. Creative accounting at it’s finest. Apparently someone else is paying the other 50% increase. Thank you whoever you are.

#19 AGuyInVancouver on 11.05.19 at 6:01 pm

Well, so much for any downside of the Greater Fool theory then. In Canada’s largest real estate markets there is no fool who gets left holding the bag. The music never stops. Real estate is the best investment.

#20 Long-Time Lurker on 11.05.19 at 6:06 pm

>Petrified wood in the Arctic: pre-fossil fuel climate change. Like Alberta’s dinosaurs froze every winter then thawed out in the spring and grazed on prairie grasses?

New documentary recounts bizarre climate changes seen by Inuit elders

Inuit filmmaker Zacharius Kunuk

KEVIN VAN PAASSEN/THE GLOBE AND MAIL

GUY DIXON
PUBLISHED OCTOBER 19, 2010
UPDATED MAY 2, 2018

Imagine how this feels: The land and weather are turning erratic and dangerous. Warmer, unpredictable winds are coming from strange directions. Severe floods threaten to wash away towns. And native animals, the food supply, aren’t behaving as they used to, their bodies less capable in the changing climate.

Even stranger is the fact that the sun now appears to set many kilometres off its usual point on the horizon, and the stars are no longer where they should be. Is the Earth shifting on its axis, causing the very look of the sun and stars to change?…

…Yet the elders talk about all this without anger, only a tinge of sadness. Kunuk says this is an Inuit characteristic, based on the belief that the world is forever changing, whether at the hand of man or through natural cycles. “We know for a fact that way up in the high Arctic, there are mummified tree trunks [showing that the Earth’s climate was once totally different] Also, when Inuit hunters talk about animals, they always talk about cycles, everything goes in cycles. We just have to adapt to it.”….

https://www.theglobeandmail.com/arts/film/new-documentary-recounts-bizarre-climate-changes-seen-by-inuit-elders/article1215305/

ALBERTA
03/08/2014 10:45 EST | Updated 03/11/2014 10:59 EDT

Which Dinosaurs Roamed Alberta And The Rest Of Canada?

The Huffington Post Alberta

It’s been a fruitful year for dinosaur fossil discovery in Alberta.

Several weeks ago, University of Calgary researchers announced they had discovered a 70 million-year-old skull of a horned dinosaur in the Alberta Badlands.

As well, an extremely well-preserved baby dinosaur skeleton was discovered in Dinosaur Provincial Park in Alberta last fall and within weeks pipeline crews uncovered the complete skeletons of two massive duck-billed hadrosaurs.

There’s so much international interest in the dinosaurs that once roamed parts of Canada, in fact, that the University of Alberta has announced it will offer an online Dino 101 course for those interested in learning more about the ancient animals….

https://www.huffingtonpost.ca/2014/03/08/dinosaurs-canada-alberta_n_4925049.html

#21 Long-Time Lurker on 11.05.19 at 6:11 pm

Was Clifford Douglas’ Social Credit policy really ever tried anywhere? I’m wondering what the result was. It looks different from Universal Basic Income or Modern Monetary Theory. I read that Alberta & BC had Socred parties but never really applied Douglas’ theories. Maybe his theories were only imaginatively applied in Robert Heinlein novels?

I remember the BC Socreds. It’s faaaantastic!

#22 JohnnyAB on 11.05.19 at 6:14 pm

That’s good. That’s amazing. If houses go up, it means the ones who were waiting are buying now. It means that the people become over leveraged. It means the ones who had money for down payments won’t have money soon. And that means a lesson will be learned the hard way (unless it is really different now, and houses will always go up, which it never happened)

#23 You know val on 11.05.19 at 6:17 pm

So people lots of people are close to going bust….why is it not happening…they still managing to hang on…what’s up here? Fake news?

#24 ElGatonerodeYVR on 11.05.19 at 6:19 pm

As usual,excellent opinion piece. One thing that is often missed in these analytics is the lack of and price of rentals in the “bubble” cities. A roughly 1,500 mortgage payment monthly for a 240K mortgage and property tax would get you a rental basement suite in Surrey with virtually no transit options to where the jobs are..so add another $500-$800 monthly per person for car(have you seen our car insurance rates?) and a couple of 2 is looking easily at spending 3k monthly just to live in Surrey of all places . That can buy a 500K mortgage close to transit in Burnby or Vancouver. Insane prices…yes but that is the cost of living in Beautiful BC as our licence plates proclaim.

#25 renter in Surrey on 11.05.19 at 6:19 pm

RE: #3 Mr Fundamental on 11.05.19 at 4:34 pm
Makes me happy that I bought a house in 2005 and have stayed there since.

Wise man. I wish I did the same. But I was reading blogs. Renting forever is the only option now for me.

#26 not 1st on 11.05.19 at 6:24 pm

#16 IHCTD9 on 11.05.19 at 5:45 pm

Heh, heh.
C’mon Trudeau, it’s time to legalize the oldest profession (but not try to run the business, please).

—–

Guess weed and prostitution will become 11% of our GDP once Trudeau kills the patch.

#27 yorkville renter on 11.05.19 at 6:54 pm

#25 – I assume you have other assets, since you didnt buy a property?

#28 IHCTD9 on 11.05.19 at 6:58 pm

#26 not 1st on 11.05.19 at 6:24 pm
#16 IHCTD9 on 11.05.19 at 5:45 pm

Heh, heh.
C’mon Trudeau, it’s time to legalize the oldest profession (but not try to run the business, please).

—–

Guess weed and prostitution will become 11% of our GDP once Trudeau kills the patch.
————

With all the MGTOW’S and Incels out there, it might!

#29 Steven Rowlandson on 11.05.19 at 7:05 pm

“The average property (houses, condos etc.) is $852,000 – fifty grand more than last autumn.”

Never in this countries history have so many thrown out their moral compass in favor of genocidal greed for so long for so much. Never! This will end badly.

#30 Smartalox on 11.05.19 at 7:11 pm

Look for a lot of panic selling in 2020: the CRA is setting its sights on speckers and flippers!

https://vancouversun.com/legal-post/contractors-buying-from-home-depot-other-retailers-beware-the-cra-is-coming-after-you/wcm/f628d205-17e6-4045-a380-d14dd39a9a0f

n July, using what is known as the “unnamed person requirement”(UPR) found in the Income Tax Act, the CRA obtained a Federal Court order compelling Home Depot to disclose the identities of the home renovation behemoth’s commercial customers and the total annual amount spent by each customer between January 1, 2013 and December 31, 2016, at its 182 Canadian stores.

“Contractors who are part of the cash economy and who have registered with Home Depot as commercial contractors should expect to be audited,”

Indeed, using a similar strategy, CRA has compiled lists of municipal building permits by way of seeking out unregistered building subcontractors. The review of 8,396 building permits yielded 2,751 unregistered building contractors.

According to a CRA report released in late 2018, underground activity in Canada totalled $51.6 billion in 2016, or 2.5 per cent of gross domestic product.

Residential construction (26.6 per cent), retail trade (13.5 per cent) and accommodation and food services (12.1 per cent) accounted for more than half of this.

“These industries have continued to be the main contributors to underground economic activity in Canada since 1992 — the first reference year of this study,” the report states.

#31 crowdedelevatorfartz on 11.05.19 at 7:12 pm

@#20 Long Time Lurker
“the University of Alberta has announced it will offer an online Dino 101 course for those interested in learning more about the ancient animals….”
++++

Will there be a semester on the spending habits of Boomers?

#32 Dave on 11.05.19 at 7:13 pm

Those aren’t Canadian tax payers buying in Vancouver and you know that. Most can’t afford these prices.

#33 Flop... on 11.05.19 at 7:19 pm

The downward trajectory continues in Vancouver.

People getting crushed everyday, even at the bottom of the market.

Anyone that tells you otherwise is just lying.

You can lie to me via email, phone call or blog.

Just don’t lie to my face…

M45BC

#34 Nonplused on 11.05.19 at 7:20 pm

I’m guessing the primary reason for the improved statistics in Vancouver and GTA are a reduction in listing. I’m also guessing that the reduction in listings is partly due to softer prices and partly due to sellers timing the market. After all a lot of price support was promised during the election. (It’s interesting how policies that amount to “price support” get called “making housing more affordable”.)

If my guesses are correct and sellers are attempting to time the market based on forthcoming government policies, then what will happen is a build in pent-up sellers, not buyers. Remember, they are having to coax buyers into the ring with equity sharing, raised RRSP allowances, low interest rates, mortgage insurance, and other programs already. The demand is largely artificial already because prices are too damn high for people to afford in what an unmanipulated market would dictate. If you need the government to pay for 10% of your house that house is 10% more than you can afford. If you need to raid your RRSP for $80,000 then the house is $80,000 more than you can afford. If you need CMHC insurance the house is more than you can afford (because banks don’t think you can afford it or they wouldn’t need insurance).

If I am right about that part too, then what will happen once all the new policies are put in place is that there will be a surge of listings from all of the pent-up sellers. That could spook buyers even further and only quality houses will sell. (There is always a surprising amount of junk on the market, old houses that have received little to no maintenance but being priced the same as quality homes that are in good shape. Pain in the ass viewing them. My realtor used to go preview houses he thought I might be interested in without me once he found out I wasn’t interested in houses with mice infestations in the foundation or that needed a new roof and windows. My experience was that 75% of the houses for sale needed major repairs. And these were $1 million dollar houses.)

But I can understand the policy direction. It has been years that the Canadian economy was growing slower than the population which has lead to stagnant wages. (Except in Blue part of the country, but the anti-pipeline crowd fixed that.) You wouldn’t need a minimum wage if this were not so. Canadians have filled the rising gap between wages and the cost of living by using home equity loans to pay the bills. And it’s been happening for a long time. Thus, the whole strength of the Canadian economy rests on the idea that house prices always rise. I am sure it has occurred to the thinkers in the BoC’s analytics department that if house prices were to slide substantially all hell could break loose. Consumer spending would plummet and bankruptcies soar, which could run the risk of setting off a self reinforcing loop. They pay an army of people to do nothing else but think about such things. Most major corporations also pay at least a platoon of people to think about such things. I know, I was in one of those corporate platoons for many years.

The problem with complex systems is that they are inherently unstable. The more dials and buttons the government has to add to the economy to keep the illusion alive, the more likely it is that when the SHTF moment comes, nobody will be able to stop it even if they can figure out what part broke first. The economy today resembles a modern car, where you need a $5,000 scan tool to figure out what’s wrong with it. Only the scan tool the government think tanks are using doesn’t come with pre-programmed codes and just has to guess which component might have failed. And it’s filled with a large number of unstable feedback loops that can go exponential in a short time.

The economy today resembles a 737-Max. One bad sensor could lead to disaster. Housing is the most critical factor, which is why it is such a focus. Unfortunately I think the sensor is broken there too, and the pilots are fighting the joystick in an effort to keep the thing in the air. The unfortunate problem is that eventually the machine will wear out the pilot and have its way.

#35 Flop... on 11.05.19 at 7:42 pm

Well, The Melbourne Cup is over for another year.

I blew all my fun money on a bet that a guy from rural Ontario spent no money on company number four despite the obvious attraction…

M45BC

Top Ten Hottest Stocks Since 2000: What if You had Invested $100?

Stock prices move up and down every day, but the very best companies bring value to their shareholders over the long term. Since 2019 is almost over, we wanted to understand the top 10 stocks so far this century. At least some of the companies making the list might surprise you.

Monster’s stock earns the top spot, where an initial investment of $100 would be worth $62,444 today.

Netflix ($23,071) and Apple ($7,416), two of the famous FAANG stocks, also make the top ten, but they aren’t nearly as valuable as the energy drink maker.

Other notable companies like Walmart and Berkshire Hathaway don’t make the top 10.

There’s a significant diversity of industries represented in the top 10, from consumer products and tech companies to retail and financial services.
Business Insider originally created a list of the top 10 best-performing stocks this century. We looked up the stock prices for each one on Yahoo Finance as of December 31, 1999, or the date the company went public, whichever was later. Imagine you invested $100. Our visual shows how much you’d have as of October 22, 2019.

Total Return (%) on $100 Investment

1. Monster Beverage: 62,444%
2. Netflix: 23,071%
3. Equinix: 12,050%
4. Tractor Supply Company: 10,171%
5. Intuitive Surgical: 9,155%
6. Ansys: 7,856%
7. Apple: 7,416%
8. IDEXX Laboratories: 6,822%
9. Mastercard: 6,279%
10. Ross Stores: 6,003

#36 tccontrarian on 11.05.19 at 7:44 pm

“Second, we just went through a federal election where subsidizing homeowners and buyers was a central theme. The triumphant Libs have goosed the RRSP Home Buyer’s Plan, will bring in green reno subsidies, and are inflating the shared-equity mortgage plan to included houses worth up to $800,000 in the Bubble Cities. The message was sent, loud and clear: the government wants you to be enslaved and immobilized by borrowing instead of dangerously free and unpredictable. Apparently it’s working.” GT
——

Very true, but you forgot one more thing the T2 government wants: to keep you stoned with readily available weed (the legal kind, of course).

Now, there’s a thing called “a dead-cat bounce” in the markets. Could this recent surge in RE activity be one of those? Would make total sense to me!

tcc

#37 S.Bby on 11.05.19 at 7:49 pm

The YVR stats are a bit of a head scratcher because boots-on-the-ground observation is that sales are quite slow, not non-existent mind you but slow nevertheless. And prices are certainly down overall so perhaps that is spurring some sales.

#38 Reximus on 11.05.19 at 7:50 pm

#11 Yorkville renter

I thought you were timing your buy for this coming spring? toldja it would cost more if you did

#39 Yukon Elvis on 11.05.19 at 8:02 pm

I don’t know why anyone would be surprised at the housing market picking up steam. Population growth, low interest rates, and government policy pretty much guarantee it. The housing market goes thru ups and downs and gyrations like the stock markets do but the future trend seems to be upward.

#40 Niagara Region on 11.05.19 at 8:05 pm

#30 Thanks, Smartalox. That’s the best housing news I’ve heard in a long time. The Niagara Region is flooded with flippers who, from my point of view, are destroying an incredibly large number of the beautiful historic homes here (e.g., removing solid wooden doors and replacing them with cheap manufactured wooden doors from Home Depot). Also, I find it galling that I pay more than a 30% income tax rate on my salary while so many flippers are working under the table to make houses unaffordable for folks like me. Go CRA!

#41 IHCTD9 on 11.05.19 at 8:19 pm

#35 Flop… on 11.05.19 at 7:42 pm
Well, The Melbourne Cup is over for another year.

I blew all my fun money on a bet that a guy from rural Ontario spent no money on company number four despite the obvious attraction…

M45BC
——-

You win that bet Flop, $0.00 spent at TSC.

Mainly because the manufacturer of my current fav in the Yellow Iron roster (ie. not my TD9) has been out of business for 62 years, so I have to get parts from bone yards, E-Bay, and machine shops.

Enjoy your winnings!

#42 bubu on 11.05.19 at 8:35 pm

Something is very wrong with this country… I understand AB now even if it doesn’t make any logical sense…

https://www.cbc.ca/news/canada/montreal/english-government-services-quebec-1.5348007?fbclid=IwAR3AUOKkjtStLfl6DyNsmWGLflfS7RIIhVczWxYqZwM-YuOWK7aWuhJOqU0

#43 bubu on 11.05.19 at 8:39 pm

I think the constitution needs a referendum… Hard to find a leader to unite this country anymore with all these stupid movements….

#44 not 1st on 11.05.19 at 8:44 pm

So much for our MSM, the defenders of truth and virtue. Ahh not so much.

ABC News anchor slams her network’s handling of Epstein scoop

https://www.washingtonpost.com/opinions/2019/11/05/ive-had-this-story-three-years-abc-news-anchor-slams-her-networks-handling-epstein-scoop/

#45 DON on 11.05.19 at 8:49 pm

#16 IHCTD9 on 11.05.19 at 5:45 pm

#7 n1tro on 11.05.19 at 4:58 pm
#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-

Another prime example that it just may be better to rent than own?
——

Heh, heh.

C’mon Trudeau, it’s time to legalize the oldest profession (but not try to run the business, please).
*****************

Yup government certified sex consultants. Gotta wonder if the government could ruin sex, like they appear to be doing with cannabis.

On another subject I read an article that stated car insurance is less in rural areas in Ontario and Urban areas pay through the nose…understandable.

#46 islander on 11.05.19 at 8:51 pm

https://www.msn.com/en-ca/money/topstories/abandoned-mansions-that-are-still-standing-empty/ss-AAJSpqn?li=AAggFp5&ocid=mailsignout#image=27

Worth a look and a thought!

#47 april on 11.05.19 at 8:57 pm

According to Ross Kay home prices did not increase by 5%+ in October.. Ross Kay – howestreet.com Today.

#48 crowdedelevatorfartz on 11.05.19 at 8:57 pm

@#6 Weird 1%
“I’m married.
I don’t have sex.”

+++++

Well, I have to admit .
That was wa-a-a-a y too much info.
And , it creeped me out….
So one creep out deserves another.

Since you “invest”…have you considered this?

https://www.youtube.com/watch?v=-cN8sJz50Ng

#49 april on 11.05.19 at 8:59 pm

At #34 according to Ross Kay sellers are not listing their homes because they’re afraid…. unsure of the economy etc..have a listen.

#50 TurnerNation on 11.05.19 at 9:05 pm

Is this Canada? Did it exist ever? Are we simply a resource and banking jewel in the Crown?

Let us examine the facts this year:

– I heard the Canadian flag was not displayed on TV or set for in recent Federal leaders’ debate
– Allegedly one Federal candidate debated wearing a UN lapel pin.
– The Freeland photo op with her helper – she is wearing a blue UN hat. btw I bet she is being prepped as a party leader)
https://www.cbc.ca/news/canada/toronto/rahaf-al-qunun-canada-saudi-refugee-1.4976735

– Allegedly this is a Remembrance day display in NS…a UN flag hangs behind it.
https://i.redd.it/csulzhvjdyw31.jpg

Hey just Fair Comment on stuff in the press.
Interesting that the UN flag displays a flattened/flat Earth map, all within the sights of a Radar-type display.
Nice, we are its targets.

#51 TurnerNation on 11.05.19 at 9:08 pm

Further, they are always trying to break us up. We are that valuable to them, always in their sights. Divide and conquer.
– Decades of QC Seperation debate and voting.
-The Bloc QC just won a high number of seats.
– And now, Wexit.

#52 DON on 11.05.19 at 9:11 pm

#7 n1tro on 11.05.19 at 4:58 pm
#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-

Another prime example that it just may be better to rent than own?
********

This would be perfect on a t-shirt.

@shout out to Chaddywack

Broke down today and couldn’t resist commenting. Still detoxing…no news or blogs at night. Walking around and getting little projects done, working out more and no tv news. I can’t go back to dial up (too painful) so instead I leave the computer off and walk away from it.

Good luck!

Oh yah, everyone else.

Dead Cat BOUNCE…and then the music stops…

Singing bub bye Mr. Greaterfool, I drove my RV to the Walmart and the Walmart was full. And good ole mom’s drinking coolaid and rye. Singin’ this’ll be the day that I buy…

#53 Long-Time Lurker on 11.05.19 at 9:18 pm

>Anti-karoshi. So wrong for so long?

Microsoft Japan tested a four-day work week and productivity jumped by 40%

The experiment for the month of August led to more efficient meetings and happier workers who took less time off

Kari Paul

Mon 4 Nov 2019 22.14 GMTLast modified on Tue 5 Nov 2019 15.52 GMT

Microsoft Japan’s four-day work week project gave its entire 2,300 person staff five Friday’s off in a row without decreasing pay.

Microsoft Japan’s four-day work week project gave its entire 2,300 person staff five Friday’s off in a row without decreasing pay.

Microsoft tested out a four-day work week in its Japan offices and found as a result employees were not only happier – but significantly more productive.

For the month of August, Microsoft Japan experimented with a new project called Work-Life Choice Challenge Summer 2019, giving its entire 2,300-person workforce five Fridays off in a row without decreasing pay.

The shortened weeks led to more efficient meetings, happier workers and boosted productivity by a staggering 40%, the company concluded at the end of the trial. As part of the program, the company had also planned to subsidize family vacations for employees up to ¥100,000 or $920.

“Work a short time, rest well and learn a lot,” Microsoft Japan president and CEO Takuya Hirano said in a statement to Microsoft Japan’s website. “I want employees to think about and experience how they can achieve the same results with 20% less working time.”

In addition to the increased productivity, employees took 25% less time off during the trial and electricity use was down 23% in the office with the additional day off per week. Employees printed 59% fewer pages of paper during the trial. The vast majority of employees – 92% – said they liked the shorter week….

https://www.theguardian.com/technology/2019/nov/04/microsoft-japan-four-day-work-week-productivity

Japan is facing a ‘death by overwork’ problem — here’s what it’s all about

Chris Weller Oct 18, 2017, 8:36 AM
Reuters

Japan’s work culture is so intense, people in the 1970s invented a word that translates to “death by overwork.”

“Karoshi,” as it’s known, involves employees committing suicide or suffering from heart failure and stroke because of long work hours.

The Japanese federal government has taken steps to reduce karoshi cases, but experts fear the measures don’t go far enough.

Ever since the late 1970s, Japan has had a word to refer to people dying from spending too much time in the office: karoshi. The literal translation is “death by overwork.”….

https://www.businessinsider.com/what-is-karoshi-japanese-word-for-death-by-overwork-2017-10

#54 Dog Breath on 11.05.19 at 9:26 pm

#7 n1tro on 11.05.19 at 4:58 pm

#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-
Another prime example that it just may be better to rent than own?
———————————————————
Are you referring to real estate or the sex partner??

#55 Gotta Get Out of Calgary on 11.05.19 at 9:26 pm

Interesting post. Not sure that sales are rising in Calgary (although my assessment is based on observation around the neighbourhood and along the bus route and occasional internet surfing strictly out of curiosity rather than official stats.)

My bus route is papered with for sale signs. Within the last two years, many of the signs disappeared just before Christmas. Not sold, just gone. If they had sold, I’m sure the realtors would be beside the signs throwing confetti, jumping up and down, and yelling “See, see, sold, sold!”

Many signs reappeared in the spring on the same properties. One property has had a For Sale sign hanging out front for the last four years. Even the realtor hadn’t been around as the sign was swinging in the wind by one hinge for six months. A few months ago, the sign was replaced by a new sign from a different realty company. Still swinging in the wind but now with two signs out front — just in case you didn’t see the first one.

New condo builds have dropped the restaurant gift card and trip to Vegas enticements and are just dropping selling price. A new condo tower in the trendy East Village area, still 1/3 empty, dropped the price on each of the remaining units by $100,000. Billboards, full-length newspaper ads, radio spots all promoting the slashed prices. I swear you could hear the “not fair” wailing from the other 2/3 buyers all the way south to Okotoks.

Had a chat with the realtor spouse of a co-worker at a work social function. Very glumly, he said that the condo market is tanked and anything over $1 million is not selling. There was still the occasional sale around the $400,00-500,000 range but very few and with a long time between posting and closing. They are living on the wife’s salary and he’s looking to pick up some extra casual work.

When the 60-year old apartment building where I lived converted to condos ten years ago, selling prices were at the ridiculous height of $289,000 for a two bedroom and $269,000 for one bedroom. Back two years ago, I posted about three condos for sale in the building. Condo #1, two-bedroom initially listed at $255,000 with selling price dropped multiple times down to $225,000. Owner then took it off market and looked for a renter. Condo #2, one-bedroom originally listed at $219,888 dropped multiple times, then up for rent simultaneously and eventually sold at $175,000. Current listings of units in the building are now appearing with a starting price of $148,000 and $139,000 and dropping.

Then there was the following conversation when I ran into my elderly neighbour from the unit below me on the front sidewalk:

Neighbour (nodding towards the sign on the lawn): “Another one hit the dust, eh? (Yes, he said “eh”.)

Me: “Nope, still #206.”

Neighbour: “Can’t be. That sign went down one month ago.”

Me: “Look again. Carefully.”

Neighbour (peering at sign): “Hey, that’s the same sign……..and the same realtor!”

Me (nodding towards duplicate sign propped in the unit window): “Yep, and it has a twin……because now they are really serious about selling.”

#56 yorkville renter on 11.05.19 at 10:05 pm

#38 – I dont recall, perhaps I missed the post but OK. Wife decided to skip buying because she loves it here (and no matter what, we cant buy a detached in these parts).

6 months is still a LONG time to go, let’s pick this up in March!

#57 IHCTD9 on 11.05.19 at 10:08 pm

#45 DON on 11.05.19 at 8:49 pm
#16 IHCTD9 on 11.05.19 at 5:45 pm

#7 n1tro on 11.05.19 at 4:58 pm
#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-

Another prime example that it just may be better to rent than own?
——

Heh, heh.

C’mon Trudeau, it’s time to legalize the oldest profession (but not try to run the business, please).
*****************

Yup government certified sex consultants. Gotta wonder if the government could ruin sex, like they appear to be doing with cannabis.

On another subject I read an article that stated car insurance is less in rural areas in Ontario and Urban areas pay through the nose…understandable
———-

I can just imagine the forms you’d have to fill out, but at least they’d all get free std tests and a DB pension…

True about the insurance rates. More accidents in the big city than out in the sticks, so they pay more. Also, a lot (tons) more car theft/vandalism and fraud in urban areas. Also trucks cost less to insure, probably because they “win” more accidents (less injuries). Years ago, you’d pay more for a Honda Civic specifically because they were the most stolen car in Canada for a while.

#58 DON on 11.05.19 at 10:11 pm

Just leaving this here..

https://edmonton.citynews.ca/2019/10/24/husky-ceo-says-layoffs-werent-due-to-liberals-winning-election/

#59 LP on 11.05.19 at 10:15 pm

#7 nitro

You talkin’ house or spouse?

#60 DON on 11.05.19 at 10:15 pm

and then there is this

https://www.wsj.com/articles/chinas-housing-market-is-finally-cooling-some-homeowners-are-furious-11572949806?mod=rsswn

#61 fishman on 11.05.19 at 10:50 pm

Squamish Nation holding a referendum next month, 50%+1 is a pass. Southside of Burrard Bridge right next to the turnip farm. 11 fifty five story towers. 6000 units, retail & parking below ground, sports courts, walkways ground level. Construction starts 2021.
I mean it was their land. They had their village right where the CPR wanted a bridge & railway yard. CPR brass went to the villagers, made an offer & the braves told them to piss off. So the CPR waited till the late spring because all the men & single women would get on the steamers & go up the inlets to fish for the canneries. These places in those days were 3-6 days from Vancouver. Only white men & Indians were allowed to fish. Indian women, Chinese & Japanese had to work in the canneries.
Well, soon as the men were gone, the CPR came in, bundled up the women & children & old people, dispersed them to different villages where I suppose they had relatives. Bulldozed all the shacks into a big pile & burn’t it. This was in 1913 & by the next year the great war started & soon sympathy became thin gruel.

#62 april on 11.05.19 at 11:11 pm

# 39 -You sound like a typical salesperson…always pumping the market upwards….everyone knows the trend is upwards over a long period of time with corrections along the way as you state, but face it we’re in a downward trend now. Even CMHC states the trend is downward into 2020/21. Industry spin wants the public to believe that the market is taking off again… so dishonest.

#63 Kat on 11.05.19 at 11:28 pm

We live in the downtown area of Vancouver and basically people are starting to buy again because rent is the same as a mortgage payment around here now. Fool on us who thought it was going to go down like everyone predicted. Should have bought but not a chance now.

#64 BCWally on 11.05.19 at 11:48 pm

It’s too bad those centers are where the jobs are and families want to be. It must be agony having to accept those prices and taxes just because you want some “security”.
If there are any young people reading this you might want to consider this plan.
If you can or already have the skills, get a career/education that allows you to locate elsewhere than those expensive major centers.
Trades aren’t bad, but internet based office work is better. I’m surprised that more large companies haven’t outsourced office work to minimize office costs. The internet infrastructure upgrades lately can easily provide the speeds necessary for those functions. Perhaps that is a prescient thought.
Find a small town located on a highway within two hours driving of an urban centre and has a solid internet connection.
If you don’t have a lot of money consider buying a manufactured home for $120-$150K and plunk it on a $500 a month pad to start, buy the empty lot later. You will be surprised at just how nice those homes are with a large square footage.
If you succeed you will be in a position to follow this blog’s financial recommendations and become financially independent.
Look, just my humble opinion, but I happen to think this whole thing will implode someday. I remember the GTA in 1991-1992 as a very young man. If you read the post by “Got to get out of Calgary” above that is what it is like.

#65 Not So New guy on 11.06.19 at 12:10 am

You didn’t really make it clear. Were the sprinkles for the chocolate or the sex?

#66 Sail Away on 11.06.19 at 2:11 am

#7 n1tro on 11.05.19 at 4:58 pm
#6 The Wet One on 11.05.19 at 4:50 pm
Garth.

I’m married.

I don’t have sex.

Or get sex. Or chocolate for that matter either.
————-
Another prime example that it just may be better to rent than own?
————————–

The original purchase can be an asset or a liability, but it’s hard to know going in.

#67 PetertheSeparatistfromCalgary on 11.06.19 at 2:53 am

From the November 5, 2019, Wall Street Journal

“Nervous investors have socked $3.4 trillion away in cash. But stocks are rising and their nerves are calming, leading bulls to view the huge cash pile as a sign that markets have room to go higher.”

https://www.wsj.com/articles/ready-to-boost-stocks-investors-multitrillion-cash-hoard-11572958800?mod=rsswn

#68 Jenny Wang on 11.06.19 at 3:20 am

The balanced approach is geared towards safety, not towards making money. It’s a choice, not a strategy. However, not everyone wants to get rich, they’re satisfied with Hum Drum, and that’s fine. Personally I was buying with two fists when October ended. I’m buying everything, across the board. I’m buying because the hedge funds and money managers haven’t started yet, laughable. I’m buying value and growth. And, surprise, I’m also buying equal shares of preferred shares, because, why? Growth potential. I like being rich. I made money young. I made more money investing than working. I don’t work any more. That will never happen using the low and slow safety offered by managed balanced funds. But, I wanted to enjoy life while I was young. You might be satisfied with a ‘once in a lifetime trip’ at 65.

CNBC: Interest rates suddenly entered a new phase and they are moving higher thanks to possible trade deal.
https://www.cnbc.com/2019/11/05/interest-rates-moving-higher-thanks-to-possible-trade-deal.html

#69 Stan Brooks on 11.06.19 at 4:39 am

#4 X on 11.05.19 at 4:35 pm
So how long for rates to rise and people to realize they have actually borrowed too much? Given all of the economic stimulus, I am somewhat surprised inflation is so low. May not be the case if trade disputes get settled and taxes are lowered further in the US.

Inflation is low? In wonderland and in the sheeple’s mind and probably after a lot of ganja, not in the real world.


#2 Linda on 11.05.19 at 4:26 pm
I just shake my head at the thought that folks are falling for the so called ‘free’ money from the increased RRSP withdrawal plus the other promised government largesse.

We may shake our head as much as we want but due to government agency largesse (i.e. ‘insurance’ of subprime debt/CHMC), BoC and the banks over-lending policies we enjoy quite a stellar inflation that impacts everyone, inflation in necessities and services – rent, food, etc.

The debt-addiction techniques imitate drug addition methods of the street dangs – introduce unhealthy habits, incentivize it and give instant gratification to the sheeple/make it feel rich and superior.

It is quite amazing that some people still think that they can live life isolated from all this insanity.

#70 Gravy Train on 11.06.19 at 6:37 am

#18 Bezengy on 11.05.19 at 6:01 pm
“Electricity rates in Ontario jumped Nov 1 from 13 per [kWh] to 20 per [kWh] during peak hours, but luckily our monthly bill will only increase 2%. Creative accounting at [its] finest. Apparently someone else is paying the other 50% increase. Thank you whoever you are.” Or you can just buy solar panels. My last two bimonthly power bills each showed that I just had to pay the basic charge of $22.75 while ‘banking’ 618 kWh for future use. “Contact your local electricity utility or local distribution company to find out how to:
• apply for a net metering agreement, and
• connect your renewable energy system to the grid.”

https://www.ontario.ca/page/save-your-energy-bill-net-metering

#71 ts on 11.06.19 at 6:44 am

“Those who trust in their wealth and boast in the multitude of their riches, none of them can by any means redeem his brother, nor give to God a ransom for him – for the redemption of their souls is costly, and it shall cease forever…” Psalm 49: 6-8

#72 Bezengy on 11.06.19 at 7:09 am

#30 # 40 I went down to City hall in Niagara yesterday to get a building permit, despite the guys at the coffee shop telling me I was nuts to worry about it. Nice lady at the desk told me there’s nothing they can do about illegal building. Seems like an obvious cash cow to me. House to house audits perhaps?

#73 Bezengy on 11.06.19 at 7:23 am

#70 I put in a small 400 watt solar system in one of my houses in Timmins. One thing I noticed is the lights go out when the sun doesn’t shine…seriously.
Anyway the point is I’m making is the same as many on this blog have stated, 2% inflation is total BS. We’re living off of borrowed money. With regards to electricity Hydro One is starting to realize if you sell 49% of the company, you only get 51% of the profits. Sooner or later we’ll all be paying a lot more for basic hydro services to make up for the difference.

#74 not 1st on 11.06.19 at 7:39 am

Canada geographic area 9.9 million km2
Canada Population 37million
Canada GDP 1.6T

Texas geographic area 695,000 km2
Texas population 24 million
Texas GDP 1.6T

Texas has no Hollywood, facebook, google, twitter.

Every Canadian should hang their head in shame at the squandered wealth that slips through our hands daily.

https://www.youtube.com/watch?v=GVW1rOK2Nhw

#75 crowdedelevatorfartz on 11.06.19 at 8:06 am

@#61 Fishman
Interesting history lesson.
Have you been following the latest Dipper Developements in Left of Left BC?

Seems the NDP are adopting the a United Nations Resolution for aboriginal rights in BC.

https://vancouversun.com/opinion/columnists/vaughn-palmer-b-c-ndp-ready-to-adopt-un-resolution-on-indigenous-rights-but-will-it-mean-a-veto

If it passed into Law it will mean the Aboriginal “nations” in BC will have the right to veto or pass any govt proposals……then the govt will have to fight their veto in Court.
Awesome.
Years of litigation to anything done.
But our Premier looks great in a ceremonial headdress doesnt he?

Should be interesting to see if any industries want to invest in BC when they see the endless bickering and squabbling that will ensue.

#76 crowdedelevatorfartz on 11.06.19 at 8:18 am

@#72 Bezengy
“House to house audits perhaps?”
+++++

Gee that would help a politician get re-elected.

True story.
A friend of mine was home sick.
The doorbell rang and his dog started barking.
He answered the door.
A By-Laws officer was walking down the stairs….
“Can I help you?”, he asked.
“Oh no everythings fine.”, answer Mr By-Laws,
“We’re just checking the neighborhood for houses with unregistered dogs but your dog has a license”, He explained holding up a list of papers.

Seems the strategy was to ring the doorbell, listen for a dog, check the address for a dog license and issue a fine if the home didnt have dog permit.
THAT went over well when my friend called the media….

#77 Q2 Class No. 6131 on 11.06.19 at 8:31 am

‘The message was sent, loud and clear: the government wants you to be enslaved and immobilized by borrowing instead of dangerously free and unpredictable. Apparently it’s working.’

Gee, you’d almost think it was intentional.

#78 Gravy Train on 11.06.19 at 9:16 am

#73 Bezengy on 11.06.19 at 7:23 am
“I put in a small 400-watt solar system in one of my houses in Timmins. One thing I noticed is the lights go out when the sun doesn’t shine…seriously.” I paid a total of $44.50 to my power company for all my energy needs for the past four months. And, no, my lights never went out. I have an 8-kilowatt (20 by 400-watt) solar array, and signed a net metering agreement with my power company to connect my solar array to the grid.

“Anyway the point I’m making is the same as many on this blog have stated: 2% inflation is total BS. We’re living off of borrowed money.” You seem to be missing my point: Make your own power with solar panels or wind turbines. Did you click the link in my last post?

“With regards to electricity Hydro One is starting to realize if you sell 49% of the company, you only get 51% of the profits. Sooner or later we’ll all be paying a lot more for basic hydro services to make up for the difference.” Non sequitur.

#79 IHCTD9 on 11.06.19 at 9:26 am

If you’re a single, highly educated, very well paid dude/ette, you’re probably best off in the big city.

But if you’re pretty much anyone else – especially if you’re married, both of you work, and you make just a regular income, and if you want kids – the the rest of the country promises a better life.

I ran into an old co-worker last weekend that I had not seen for almost 10 years while grocery shopping. We did some catching up. He works at a plant now – his wife does too, both have no post secondary and in their early 50’s. He makes 25.00/hr, she makes 23.00/hr.

That’s ~ 100 G’s/year, probably taking home 6700/month. That’s not including any OT or a strategy to minimize income taxes (RRSP’s etc).

These two could buy a (very nice) brand new 1/2 Mil house, drive 2 brand new 50-60K vehicles and still have a fair bit left over to cover the rest of life plus some fun left over every month. They’d probably be renting in Toronto.

Let’s look at a scenario like mine – We went to post secondary. Ms. IH has a nice govy job, I have a decent job as well. We don’t work full time, but if we did, we’d gross 140K or about 8800.00/mo. Out here, that income could buy a near baller lifestyle should the couple choose to indulge.

What kind of life do you get with 140K income in Toronto? Probably pretty crappy still I bet. If I lived in the GTA, and told someone my household income was 140K, they would probably give me a look indicating that they wished me well on my voyage (boarding the Titanic).

Those lamenting their outlook in a metro should grab a calculator and start looking at what you can make in smaller cities a couple hours away. The city I work in is 15K pop., Ms IH works in a city with 45K pop.

#80 IHCTD9 on 11.06.19 at 9:41 am

#78 Gravy Train on 11.06.19 at 9:16 am

Non sequitur.
___

You really need to look up what these look like, either that, or stop making the accusation.

#81 Jesse on 11.06.19 at 10:14 am

#74 not 1st on 11.06.19 at 7:39 am
Canada geographic area 9.9 million km2
Canada Population 37million
Canada GDP 1.6T

Texas geographic area 695,000 km2
Texas population 24 million
Texas GDP 1.6T

Texas has no Hollywood, facebook, google, twitter.

Every Canadian should hang their head in shame at the squandered wealth that slips through our hands daily.

https://www.youtube.com/watch?v=GVW1rOK2Nhw
**************************************

Texas is a pro business, pro-oil, on the coast, highly productive state that is part of a pro-business country.

Canada is a anti-business, anti-oil, liberal, ‘taxed until death’ nation that produces nothing but debt. All our great minds and companies eventually move to the US where it’s easier to do business.

I weep for the future of Canada.

#82 Niagara Region on 11.06.19 at 10:19 am

Bezengy on 11.06.19 at 7:09 am
#30 # 40 I went down to City hall in Niagara yesterday to get a building permit, despite the guys at the coffee shop telling me I was nuts to worry about it. Nice lady at the desk told me there’s nothing they can do about illegal building. Seems like an obvious cash cow to me. House to house audits perhaps?
———————————-
Is there some kind of political corruption backing the lack of enforcement for building permits in the Niagara Region? One of my friends bought a house in St. Catharines earlier this year from a flipper, only to discover (1) that the new addition had no building permit and probably must be demolished; and (2) that the pipes for the new second-floor bathroom were run through the support beams so that the house is now considered unsafe to inhabit. She reports that the City of St. Catharines has been stunningly unhelpful (allegedly) about the situation. Because of the staggering rate of flipping going on in St. Catharines, Niagara Falls, and Welland, I assume that my friend is not the only home buyer in such a situation.

#83 IHCTD9 on 11.06.19 at 10:27 am

Outside of big educations and trying to make big enough bucks for a decent life in a big city – there are other ways to live.

Got a bro who has not had a conventional job in near 2 decades. His wife has a good job with a decent pension. He dabbled in RE – not flipping, but buying, renovating, severing, building again, collecting cheap land and joining lots over years, and building again. Most work by his own hands. Was done his mortgage in his early 30’s, and has a nice nest egg on the go as well. Keeps costs of living down the same way I do. His skills, and time eventually turned into a very nice, brand new, mortgage free home, and a pile of cash from RE profits. Because of their low monetary income (skills/time income is tax free), the CCB he gets is unreal – and massive tax returns too. He has a small part time biz now, and gets by nicely. He may do one more RE deal yet , but they are pretty much set either way.

Also got a B.I.L. who made no real money ever – not sure if anything past grade 12. BUT – guy has skills coming out of the wazoo, and lives a good hour+ straight north of me. He built from scratch a SWEET 1300 SF Timber Frame house on the edge of a lake. It is so sweet, post card and calendar worthy. He cut down the trees, milled all the lumber, did all the joinery work, designed and assembled the thing 99% by himself. I’d put a mighty high price tag on this place – but he owes $0.00 on it. They both work off and on, seasonal work – cost of living is ridiculously low. No heating bill, sewer bill, water bill, cheap taxes, no headaches, and living where most folks can only dream. IMHO it’s a bloody northland paradise, he can even get DSL.

Again, his skills and time created a pile of value, and they keep costs of living super low. They are heading for kid#2, and they will get an INSANE CCB benefit due to super low incomes. It’ll probably be enough for them to live on – not kidding.

I’d have to add, that for both these dudes, life has got to be quite fulfilling. It is sort of like running a business that you love to do, and that you own, and your projects (ie fun) create wealth. Beats the hell out of doing the 9-5 slog IMHO.

#84 Shawn Allen on 11.06.19 at 10:36 am

Stan Brooks on Inflation

Stan at 69 once again disputes that inflation is low.

I filled up in Edmonton on Monday at 87.9 cents per liter all taxes included.

Also just tossed a $2500 plasma television about 12 years old and replaced it with a larger television with more features for $450.

Stan, have you refused to get a Costco membership? That could be the problem.

#85 Remembrancer on 11.06.19 at 10:39 am

#64 BCWally on 11.05.19 at 11:48 pm

Trades aren’t bad, but internet based office work is better. I’m surprised that more large companies haven’t outsourced office work to minimize office costs.
———————————-
Horrible advice – hands on trades are still high touch work that generally is not done remotely and usually of value wherever you are located. Actually, companies can and do outsource staff functions like accounting or employee benefits but that is highly portable and race to the bottom price-driven; I’ve seen accounting offices move from Minneapolis to Costa Rica to The Philippines with basically the flip of a network routing table entry within a year… While there are some very successful people who are working from a 55ft cabin cruiser, sail boat or a tropical beach, most of the purveyors of work from vacation spots are authors who make a decent amount of their scratch selling online materials and books about working from vacation spots IMHO…

#86 n1tro on 11.06.19 at 11:50 am

Anyone in the NB area? Are the real estate prices reasonable to the locals? Any areas to stay away from? Thinking of picking up a place, haven’t figured out what to do with it or myself yet but it beats getting a place in or around GTA.

#87 Stan Brooks on 11.06.19 at 12:04 pm


#84 Shawn Allen on 11.06.19 at 10:36 am
Stan Brooks on Inflation

Stan at 69 once again disputes that inflation is low.

I filled up in Edmonton on Monday at 87.9 cents per liter all taxes included.

Also just tossed a $2500 plasma television about 12 years old and replaced it with a larger television with more features for $450.

Stan, have you refused to get a Costco membership? That could be the problem

Some of us /the non-zombies part/that does not survive by eating other peoples brains/ actually need to eat, need shelter and need to send their kids to school/kindergarten.

https://torontosun.com/news/national/cost-of-food-housing-and-gas-rising-fast-experts

Vegetables are up 18% year to year.

There are more important things in life than watching porno on that HD TV. How much of your expenses is that $ 450 TV and why did you not go for something more decent, like QLED for example?

#88 Gravy Train on 11.06.19 at 12:21 pm

#80 IHCTD9 on 11.06.19 at 9:41 am
“Non sequitur. You really need to look up what these look like, either that, or stop making the accusation.” Non sequitur is Latin for “it does not follow.” The commenter concluded, “Sooner or later we’ll all be paying a lot more for basic hydro services to make up for the difference.” By what logic or principle of economics or finance can the commenter come to this conclusion? And what is stopping the commenter from signing a net metering agreement with Hydro One to connect solar panels and/or wind turbines to the grid in order to all but eliminate his energy needs? :)

#89 SoggyShorts on 11.06.19 at 12:39 pm

#84 Shawn Allen on 11.06.19 at 10:36 am
Stan Brooks on Inflation

Stan at 69 once again disputes that inflation is low.

I filled up in Edmonton on Monday at 87.9 cents per liter all taxes included.

Also just tossed a $2500 plasma television about 12 years old and replaced it with a larger television with more features for $450.

Stan, have you refused to get a Costco membership? That could be the problem.
*****************************
Sorry Shawn, but the Stan Brooks Basket of Goods only includes DT Toronto Rent and Vegetables. It’s silly to think that there are any Canadians living outside the GTA or making other purchases.

#90 IHCTD9 on 11.06.19 at 1:09 pm

#85 Remembrancer on 11.06.19 at 10:39 am
#64 BCWally on 11.05.19 at 11:48 pm

Trades aren’t bad, but internet based office work is better. I’m surprised that more large companies haven’t outsourced office work to minimize office costs.
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Horrible advice – hands on trades are still high touch work that generally is not done remotely and usually of value wherever you are located. Actually, companies can and do outsource staff functions like accounting or employee benefits but that is highly portable and race to the bottom price-driven; I’ve seen accounting offices move from Minneapolis to Costa Rica to The Philippines with basically the flip of a network routing table entry within a year… While there are some very successful people who are working from a 55ft cabin cruiser, sail boat or a tropical beach, most of the purveyors of work from vacation spots are authors who make a decent amount of their scratch selling online materials and books about working from vacation spots IMHO…
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Have to agree here, trades are a pretty good bet. What you don’t want is any job that can be outsourced/automated/AI’d.

Trades also don’t suffer near the competition from a good chunk of immigrants who’s culture sees getting your hands dirty doing anything as a disrespectful occupation. EG. I’ve never seen an Indian Machinist, millwright, electrician etc… This keeps the demand and wages up.

Meanwhile working in an office as lower management is a dead end, usually short term, crap job now. These may be outsourced altogether before too long.

Specialty stuff is cool too if you’re not planning on family life. I know a dude who’s son is a deep sea welder. He earns big – works little, and travels the world for free. Jobs like this are a good bet for early retirement too.

The best are the union public jobs. They get paid the same no matter if they are working in downtown Toronto, or in Tweed. The benefits are sweet, pensions are crazy, job security is solid. If a guy/gal can work in a smaller city making the near 6 figures most of these folks make, they got it made in the shade.

#91 not 1st on 11.06.19 at 1:34 pm

Be real careful Canada. AB can break the CPP with the stroke of a pen.

Leaving the Canada Pension Plan could be Alberta’s next shot across Ottawa’s bow

https://business.financialpost.com/opinion/columnists/braid-alberta-pension-a-serious-idea-that-would-flip-out-the-feds/wcm/fcfc3300-452a-4458-a9c6-5845cf2699b9

I can easily shoot my ear off, too. – Garth

#92 IHCTD9 on 11.06.19 at 1:59 pm

#88 Gravy Train on 11.06.19 at 12:21 pm

Non sequitur is Latin for “it does not follow.” The commenter concluded, “Sooner or later we’ll all be paying a lot more for basic hydro services to make up for the difference.” By what logic or principle of economics or finance can the commenter come to this conclusion?
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The law that says that when you sell half your business, you can expect half the profits? Nothing illogical about that.

Ontario’s need for revenues did not diminish one bit just because Wynne sold a chunk of Hydro One off. They’ll still need every last penny they ever did – and then some.

Unless government can figure out a way to cover the shortfall other than raising prices – we absolutely can look forward to higher costs 110%.

I think even you’d agree that hydro prices are only going to go up (for us non solar grid owning types).

If Bezengy had stated: “we’ve had a lot less rain this year and the water is low, looks like Hydro is going up”

THEN you can “Non sequitur” him.

#93 Stan Brooks on 11.06.19 at 2:06 pm

#89 SoggyShorts on 11.06.19 at 12:39 pm

Very original. I hope you both have some Vaseline/lubricant money saved for the future. You know there is inflation there too.

I am hearing OHIP does not cover free contraceptives any more.

#94 Eks dee Siple on 11.06.19 at 2:10 pm

Itchy, I suppose you mean well, but I find your examples a tad bit ridiculous. Let me explain: 1) All of Ontario is in a bubble. All of Canada is in a bubble somewhat. It doesn’t matter where you go, there is no escape from the RE insanity. Take today’s contributions on the Niagara region, for example. 2) Not everyone can build their own house from scratch, that is an absolutely ludicrous example for the majority of Ontarians. 3) All of your examples have always assumed at least one good job and usually it is with the government, and it usually the wife while the husband goes around fooling. Is this what you do also? Is that why you define your job as part-time? 4) You continue to embrace your own hypocrisy in complaining about socialism while fully squeezing the crap out of it. Embarassing to say the least, and not one bit helpful. In summary, all you’ve done is brag.

#95 Shawn Allen on 11.06.19 at 2:15 pm

Home Capital – Succeeds as predicted by some of us

Home Capital up 6.3% at the moment to just under $30

Recall May / June of 2017 when it was circling the drain until Warren Buffett recused it. Many at the time and since then predicted its doom. Wrong.

I said then and repeated quite a few times:

#251 InvestorsFriend on 06.22.17 at 12:50 pm
Home Capital and Buffett

I am just about 100% sure that Home Capital is now out of the woods. Share price will fluctuate. Their deposits, I can almost guarantee are swelling as I write this.

#215 InvestorsFriend on 06.22.17 at 10:42 am

Would suck to be short Home capital today. The Berkshire association will totally restore confidence. No other partner could offer the same coating of confidence. This is absolutely the gold seal of approval. It is OVER for short sellers.

#209 InvestorsFriend on 06.22.17 at 10:23 am
Home Capital GICs given the all clear signal

Warren Buffett / Berkshire’s investment gives a green light for anyone wanting to put money into Home Capital GICs.

Some others said:

(Leave it to Mark to argue even against Buffett’s judgement!)

#90 Mark on 06.22.17 at 10:38 pm

Personally I don’t think Warren Buffet really appreciates what he’s walked into here. By making this investment, he’s drank the Canadian RE sell side “Kool Aid”, the of rising prices when we’re really much closer to 2013 prices, the 2013 CMHC-change-induced plateau, with LTVs at a lender like HCG are much closer to 100% than the mere 67% claimed. You’d think that Buffet would have been educated as to the nature of the shifting sales mix in RE, and its profound impact on Canadian prices in the post-2013 period, but this investment, and the severe exaggeration of the value of HCG really calls that into question.

#96 JacqueShellacque on 11.06.19 at 2:16 pm

Was curious about this the other day, so logged onto my brokerage to check the YTD performance of my (relatively modest but Garth 60/40) portfolio. Up exactly 10% on the nose.

#97 Shawn Allen on 11.06.19 at 2:27 pm

Alberta could leave the Canada Pension Plan?

What garbage. Every Canadian pays into the CPP on the same bvasis and collects under the same rules.

Alberta is not part of the CPP at all. Canadians who happen to reside in Alberta pay into the CPP and can collect. Why would the province of Alberta have any say in this? Alberta as a province is simply not a party to CPP.

If Alberta wanted to opt out, CPP could say fine. Albertans no longer pay in but zero dollars would go back to some new Alberta pension plan. I doubt it would make much difference actuarially to the CPP. Albertans would be paid in retirement from their years contributed to CPP.

CPP is not a pay as you collect plan like Old Age pension. It is a funded pension plan. I believe it is fully funded at the moment? No deficit?

I don’t know the history of Quebec not being in the CPP. Perhaps the province opted out way back at the beginning of CPP circa 1965.

The notion that Alberta subsidizes the CPP is complete garbage. It is designed these days such that on average a worker (and her employers) funds her own CPP over her working life. Young people in Alberta of course do not yet collect – same as young people in any province.

This kind of garbage about CPP and Alberta is irresponsible.

#98 not 1st on 11.06.19 at 3:57 pm

#97 Shawn Allen on 11.06.19 at 2:27 pm
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Better do a little research because AB contributes higher proportionally to the CPP because of its younger demographic and higher per capita earnings.

Wow are Canadians ever in the dark about how their country really runs.

Here is another shocker for you, Western provinces own a smaller per capita share of the national debt than does Ont and Quebec.

#99 Vive L'Alberta Libre on 11.06.19 at 4:06 pm

https://postmediamontrealgazette2.files.wordpress.com/2019/11/boris-online.jpeg?quality=80&strip=all&w=840&h=630&crop=1

#100 Sail Away on 11.06.19 at 8:08 pm

#95 Shawn Allen on 11.06.19 at 2:15 pm
Home Capital – Succeeds as predicted by some of us

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HCG has been wonderful. Bought at 8.7 after the shorts blather and am very happy today!

#101 Gravy Train on 11.06.19 at 8:48 pm

#92 IHCTD9 on 11.06.19 at 1:59 pm
“The law that says that when you sell half your business, you can expect half the profits? Nothing illogical about that.” What is the logical connection between Hydro One’s share structure and management’s decisions to set rates? Before you answer that question, have you even read Hydro One’s 2018 annual report? Have you read management’s discussion and analysis of Hydro One’s financial condition, results of operations, and changes in cash flow? Do you even know its earnings are regulated? On what basis are you making your comments?

“Ontario’s need for revenues did not diminish one bit just because Wynne sold a chunk of Hydro One off. They’ll still need every last penny they ever did – and then some.” As of Dec. 31, 2018, there are 313,526,327 common shares issued and outstanding to the public (or 52.6% of the total). Are you under the impression that Hydro One sold off assets? :)

“Unless government can figure out a way to cover the shortfall other than raising prices – we absolutely can look forward to higher costs 110%.” Rates may go up due to inflation, but there’s no logical connection between share capital and rate setting. Read the 2018 annual report—esp. the consolidated statements of operations and comprehensive income (loss) on p. 65, the consolidated balance sheets on p. 66, and the consolidated statements of cash flows on p. 68.

“I think even you’d agree that hydro prices are only going to go up (for us non solar grid owning types).” Yes, but not for the reasons you gave. Tell me: What are your objections to solar panels? How do you not see that they’ll benefit you? :)

“If Bezengy had stated: ‘we’ve had a lot less rain this year and the water is low, looks like Hydro is going up’, THEN you can ‘Non sequitur’ him.” Please tell me you’re not on the board of directors for any major corporation—or in any position of power, for that matter. :)

#102 Tater on 11.07.19 at 7:38 am

I wonder how much of the drop in listings was people holding off to see if the Conservatives would win and bring back looser mortgage rules?