The sure thing

The big blue bank pays 1% on its high-interest savings account. That’s half the inflation rate. Fail. But RBC will pony up a 2.5% yield for the first 90 days. Meanwhile Laurentian Bank has rattled the market with a HISA delivering 3.3% – bizarre, since that’s almost a third point higher than the rate charged on the bank’s five-year mortgages (which deposits fund). So, this is a gimmick. Won’t last.

Given the wussiness of millions of Canadians, bank deposit rates are important. Despite returns that are negative (after inflation and taxes), lots of people don’t understand or trust other financial assets. So they stick with [email protected] and GICs or savings accounts destined to deliver pathetic but predictable results.

As you know, about 80% of TFSA money is stuck in these things. Languishing. While stock markets are up 20% this year and balanced, diversified portfolios have delivered an average of 7% over the last eight years, most people plod along giving the banks their savings in return for one per cent or less. So the Laurentian offer rocks. (Meanwhile its stock is paying a dividend of more than 5.6%, with a tax credit to boot. Go figure.)

But wait. How safe is this?

One appeal of chartered bank savings accounts and GICs is that they’re covered by deposit insurance, through the CDIC – a federal agency. It’s massively unlikely any Canadian bank will fail, but this coverage is worth understanding. Just in case. And it’s free.

Most people believe the insurance tops out at $100,000, which is less than half the protection Americans get at their banks. But it’s possible to seriously expand it by spreading money around within an institution. The key thing to remember is that only the boring, low-growth stuff is insured – chequing and savings accounts, term deposits and GICs, mostly. No mutual funds, stocks, preferreds or ETFs.

So the feds will cover a hundred grand in a variety of categories (seven, actually), and extend coverage to you and your spouse/partner/squeeze separately. This mean you and s/he could have separate GICs, a joint GIC as well as ore GICs in your RRSP, RRIF or TFSA, all covered. That could end up being the better part of a million.

But remember only certain assets are protected. So if a TFSA contains a $20,000 GIC and forty grand in ETFs and stocks, only the twenty would be insured. Not the whole TFSA.

You can also magnify coverage within one institution by keeping assets in various parts of it. The bank. The bank’s trust company. The bank’s mortgage corporation, for example. And there’s nothing preventing you from opening multiple accounts at different banks, having four non-registered GICs, or five HISAs or tax-free accounts at a few places containing savings or investment certificates. All is covered.

Of course the cost of insurance is performance. Interest-bearing investments have paid subsistence returns now for almost a decade while investors in other financial assets have seen their portfolios essentially double. Also remember that outside of a TFSA, an RRSP or other registered account earned interest is treated the same as income, with every single dollar subject to tax. That’s punitive when compared with the break on capital gains or dividends.

So what protection do investors have, as opposed to savers?

The depends on what you invest in, and where. In-house proprietary funds, or pooled funds created by some brokerages may not be covered, and not tradable. Ask. Portfolios of ETFs, stocks, bonds, REITs, preferreds and other negotiable assets are liquid and can instantly be turned into cash. If your broker were to go kaput, you still own all that stuff. It’s yours. The value is not protected, but the assets aren’t lost.

As for cash balances in brokerage accounts, there’s CIPF insurance, which is industry-funded and covers up to $1 million per person. That’s a million for all general accounts combined (non-registered plus TFSAs) plus another million for registered retirement accounts (RRSPs and RRIFs) plus another million for an RESP – and more millions for your spouse’s accounts.

Comparing CDIC and CIPF coverage is like choosing between a fish and a socket wrench. You can’t. They do different things. Bank insurance means you don’t lose your principal if the place goes down, but you own no-growth assets. Brokerage insurance means your securities and cash are safe in a failure, but there’s no shield against market losses.

The rule remains: if you already have enough money to finance the rest of your life and need no growth, no tax-efficiency nor cash flow – only capital preservation – stick with GICs and maximize insurance coverage.

If you’re normal, however, that’s a bad idea.

102 comments ↓

#1 Don Guillermo on 11.28.19 at 4:07 pm

#133 Don Guillermo on 11.28.19 at 3:52 pm
#124 Jesse on 11.28.19 at 2:41 pm
#21 Not 1st on 11.27.19 at 6:14 pm
Those carbon tax loving millennial’s have no idea what they voted for. Likely their own economic enslavement. But I hear the edibles are awesome.
*****************************
This what happens when you raise/brainwash a generation with a modern, liberal education with too much leisure. Millennials were given a great education in one of the freest countries in the world, who still manage to be chronically ungrateful and perpetually offended by anything that doesn’t match their idea of a perfect world.
********************************************
The world has never been in a better place. All we suffer from now is the following:
– hard times create strong men and women.
– strong men and women create good times.
– good times create weak men and women.
– weak men and women create hard times.
– rinse and repeat!
Don’t recall where I found this but we seem to be on the fourth step

#2 James on 11.28.19 at 4:09 pm

“Hey” That photo is a doppelgänger for my dog Nikki as a pup. This little guy must be a Belgian Malinois as well. We don’t have any cutesy battery operated dogs in our family only the alpha ones.

#3 Dave on 11.28.19 at 4:26 pm

In Metro Vancouver people are definitely tighting their disposible income. Restaurants, beauty salons, movie theater, etc all have empty seats everywhere.
If people aren’t spending on the above…then they are definitely not buying real estate. Prices continue to drop like a rock

#4 Stan Brooks on 11.28.19 at 4:28 pm


https://ca.finance.yahoo.com/news/canada-economy-faces-prolonged-period-162052225.html

Canada’s Economy Faces a Prolonged Period of Sluggish Growth

Beyond the third quarter, economists predict another 1.3% reading in the final three months of 2019. Next year doesn’t look much better, with growth seen running at about 1.5% in 2020. That’s a sufficiently prolonged period of below-potential growth for markets to anticipate the Bank of Canada will cut interest rates as early as January.

With understated inflation this ‘growth’ is actually a certain contraction, and please note: with close to zero interest rates and deficit of 30 billions yearly (federal deficit only)

What would be the ‘growth’ if rates are at 6-7 % and we run balanced budget? Minus (-) 6 %?

Yep, the economy/and the housing market is strong, keep believing it folks.

Cheers,

#5 crowdedelevatorfartz on 11.28.19 at 4:35 pm

“While stock markets are up 20% this year ……….”

+++++
Yeah, I have to admit there was some trepidation when the markets crapped their pantaloons last Dec….

All good now.

#6 Anonymous on 11.28.19 at 4:36 pm

Curious, what backs the CIPF? Reserves somewhere? Policies at a private insurance company? Has there been examples of a failure where it paid out?

Industry-funded, federally regulated. – Garth

#7 Ray on 11.28.19 at 4:37 pm

#1 Don Guillermo:
It may have been from Neil Howe’s “The Fourth Turning”
A loose paraphrase, he is a historian and has argued each generation is influenced by the previous generation’s issues. Neil believes we are now in the fourth turning that began with the 2008 GFC. The last fourth turning was the 1930s to WWII. This reset process (major war /financial depression) created/will create a higher demand for social order, a process of recuperating from a social crisis.

https://www.youtube.com/results?search_query=fourth+turning+neil+howe

#8 BlogDog123 on 11.28.19 at 4:56 pm

Chatting with some guy at work:

1. His mutual funds with a certain Winnipeg Based high-fee, DSC crappy mutual fund flogging company.
2. He has scholarship RESPs (the ones with high fees and restrictions)
3. TFSAs in just a 1% type saving account.

I walked him through all the wrongs in the above, but he did not seem interested in what I was saying…

As he finds his money scarce near retirement, he’ll be watching those CHIP reverse mortgage commercials on CBC-TV and thinking: “Hey, that’s the way to go!”

oh well,…

#9 WelcometoSlurrey on 11.28.19 at 5:01 pm

Garth, I would like to see you do a post on the huge discrepancy between median household income in the lower mainland vs home prices. How does any of it make sense ? Stats can reports median household income at approx. 73000. This results in a take home pay of approx. 4500 a month for a family.

Ownership at 73000 gross income. Forget about it, most people have trouble even at 100 K gross income ( and this would be an above average family ?).

Even if renting is cheaper than owning at this current moment in time. Rent is still anywhere between 2500 – 3000 for a decent place, add in your utilities plus basic vehicle expenses, some groceries …… whats left, most people would be in the negative, but here you still see people in nice shiny homes and new cars ? Is the median household income incorrect or is there something I’m not seeing.

#10 The Wet One on 11.28.19 at 5:09 pm

Ignorance is hella expensive.
Oh well.
It is what it is.

#11 Shawn Allen on 11.28.19 at 5:11 pm

But Someone has to Provide the Banks with Deposits

“As you know, about 80% of TFSA money is stuck in these things [GICs bank accounts]. Languishing.”

******************************
True, languishing as far as the individual depositor is concerned.

But of course those deposits are funding loans that earn interest for the bank and its share owners. And those loans often represent commercial loans invested in the economy.

The economy absolutely needs people to keep heaps of money in these brain-dead accounts. Let us investors give thanks?

#12 Alessio on 11.28.19 at 5:17 pm

I live in GTA and everything is still expensive. Houses towns condos. Cars iPhones Gucci belts. Taxes insurance gas. Stocks bonds precious metals. Running shoes daycare parking subway tokens. Lattes veggie burgers burgers kale bowls. Movie theatres are packed. Gyms are packed. Malls are packed. Grocery stores – packed. LCBO packed. Roads packed. Hair salon packed.

#13 MF on 11.28.19 at 5:20 pm

130 Jesse on 11.28.19 at 3:22 pm

millennial here too. No hate for boomers. After all, my parents who have given me everything and did everything right are boomers.

If you are like me you will see that what you posted is still a sweeping generalization. Few if any of my friends are entitled and “coming with taxes” like you say. Minority extremists are always the loudest, of any group of people/generation anyways. There is always a silent minority.

As for the 60’s and all the complaining I believe you are correct. There are some whiners. However, Globalization has changed the game from what the boomers experienced. Not better or worse, just different. Actually I think our world is better generally. Most of us would agree. Maybe not that loud minority of mills or boomers.

I will fault the boomers on one thing: our debt based economy. This is the basis for all the tax increases everyone sees coming, and it’s not a millennial created problem.

This blog is generally about real estate. I am of the camp that the real estate gains we have seen are 100% unearned, and only the product of low interest rates and garbage policy. Tax it further. None of it was earned. This is my view of RE only, and not of anything else in our economy.

MF

#14 Marcus Tatum on 11.28.19 at 5:26 pm

#1 Don Guillermo on 11.28.19 at 4:07 pm
The world has never been in a better place. All we suffer from now is the following:
– hard times create strong men and women.
– strong men and women create good times.
– good times create weak men and women.
– weak men and women create hard times.
– rinse and repeat!
Don’t recall where I found this but we seem to be on the fourth step

—–

Interesting take, Don. Although considering that the baby boomers had accessible housing, secure employment, rising asset values, and generous pension plans, while millennials are the first generation ever to be economically worse off than their parents, with higher debt loads, scarce and insecure employment, vanishing pensions, and a higher relative cost of living, I wonder if you may be a tad mixed up about who exactly inherited the good times.

#15 Shawn Allen on 11.28.19 at 5:40 pm

Money is a Funny Thing

If you spend your money or invest it, it simply ends op in someone else’s bank account. The bank’s collectively don’t see any decrease in money or deposits when you spend money. At least when you spend in Canada.

Paradoxically, it is when you pay off a loan that the banks see a decrease in the total amount of money on deposit.

#16 frntrunner on 11.28.19 at 5:44 pm

“Laurentian Bank has rattled the market with a HISA delivering 3.3%….. So, this is a gimmick. Won’t last. ”

might drop next week if BoC makes a change. Motive a nice backup at 2.8 tho. 3.30 isn’t bad for risk free ( minus the t5 slip)

thinking of stuffing tfsa in 2020 then holding VCNS. rrsp for more active trading. those hft folks seem to love their alpha lol. def pay to play.

#17 Bob Dog on 11.28.19 at 6:11 pm

“Emergency” interest rates for 12 + years have done tremendous damage to the middle class. The central banks and their puppet politicians are executing the largest transfer of wealth in history.

Amazing people put up with this. I am considering asking for a layoff and collecting EI for another year. Working for a living is futile. Time is the fire in which we all burn and most people are just slaves for the 0.1%.

It’s long past time for guillotines.

#18 espressobob on 11.28.19 at 6:12 pm

I keep the cash portion of the RRSP in an ETF known as CMR. Problem is WHEN the cash is needed?

https://www.blackrock.com/ca/individual/en/products/239414/ishares-premium-money-market-etf

#19 Don Guillermo on 11.28.19 at 6:14 pm

#13 Marcus Tatum on 11.28.19 at 5:26 pm

Interesting take, Don. Although considering that the baby boomers had accessible housing, secure employment, rising asset values, and generous pension plans, while millennials are the first generation ever to be economically worse off than their parents, with higher debt loads, scarce and insecure employment, vanishing pensions, and a higher relative cost of living, I wonder if you may be a tad mixed up about who exactly inherited the good times.

Possibly Marcus but every generation is dealt a different hand and every individual in the generation is dealt a different hand. Have to look forward to play the game and not lay blame on the past. In my opinion, the biggest mistake boomers made is giving their children everything except responsibility.

My experiences may have differed from yours or other boomers

* accessible housing – not from my well below middle class parents

* secure employment – had to travel all across Canada and eventually the world to keep employed

* rising asset values – maybe housing but not really until 2003 in my area. Stock market in the last 10 years has been very good.

* generous pension plans – no pension plans in my world

* millennials are the first generation ever to be economically worse off than their parents, with higher debt loads, scarce and insecure employment, vanishing pensions – most millennials need to live in housing equal or better than their parents. Non starter in my world. Their economics would look a lot better if they could start out in meager housing or stay with parents longer while “saving” money

* higher relative cost of living – every generation deals with higher cost of living

#20 Tater on 11.28.19 at 6:20 pm

#70 IHCTD9 on 11.26.19 at 7:10 pm

That one stung didn’t it?

I can tell, because your entire retort is based on false premises.

Nowhere did I claim to be a Christian, and at no point did I connect the value of work and exercise WRT addiction to spirituality.

But don’t get me wrong dude, I don’t blame you a bit – because if you had to acquiesce to my actual posted assertions, you’d have a hell of a time making a coherent argument, right? Then you’d have to endure the sting in silence. Tough one, I totally get it.

Hey, we’ve all had to usurp some dudes assertions and replace them with fabricated ones at some point in order to take the high ground. No biggie.

If you’d like to speak to what was actually posted, I’m all ears.
—————————-

Oh my, you’ve very much missed the point. Though I imagine that’s a pretty common occurrence for you, so must feel comfortable.

You seem to think hard work can cure addiction. You are wrong. But keep believing you’re right, contrary to all evidence. You wouldn’t be a conservative if you didn’t!

#21 Sail Away on 11.28.19 at 6:21 pm

Maybe it’s just me, or maybe this blog, but man alive- it seems like Millenials whine a lot, while citing macroeconomics for their supposed hardships. When I was struggling up the ladder not so long ago, it would never have occurred to me, or the people around me, to blame others, especially other demographic groups, for our difficulties.

As my uncle used to say to whiners: “Life is hard. Even harder when you’re stupid” .

Most of your results in life depend on your own decisions. Make good ones. Find successful people and ask their advice. Then take it.

#22 Marcus Tatus on 11.28.19 at 6:35 pm

#18 Don Guillermo on 11.28.19 at 6:14 pm

Possibly Marcus but every generation is dealt a different hand and every individual in the generation is dealt a different hand. Have to look forward to play the game and not lay blame on the past. In my opinion, the biggest mistake boomers made is giving their children everything except responsibility.

—-

Seems a bit asinine to claim that we’re in a cycle of strong and weak people creating good times and hard times, slag off an entire generation, then turn around and claim every generation is dealt a different hand and that circumstances are different for each individual in that generation.

If you look at “hard times create strong folks, etc.” on a generational basis:

– The GI generation endured the great depression and World War 2 in their formative years
– They then created a strong economy, with protections for workers, strong social programs, good infrastructure, and strong pension funds
– The baby boomers inherited all of this, enjoyed all the benefits of it, ultimately were the architects of the Great Recession, and failed to pay any of it forward to the next generation, with infrastructure now crumbling and training and pensions being eliminated for younger employees because baby boomers didn’t want to spend a cent of their own money on them.
– Millennials came into the job market in the worst economic situation in 75 years and have been struggling to get by now that the social situation that was enjoyed by baby boomers *as a generation* has been scrapped.

To look at all this, and fit it into that cyclical framework, and interpret the millennials as being weak and ungrateful, while their parents were the strong generation that created the opportunity for them to succeed, is complete foolishness.

#23 Shirl Clarts on 11.28.19 at 6:47 pm

#3 Dave on 11.28.19 at 4:26 pm
In Metro Vancouver people are definitely tighting their disposible income. Restaurants, beauty salons, movie theater, etc all have empty seats everywhere.
If people aren’t spending on the above…then they are definitely not buying real estate. Prices continue to drop like a rock

^^^^^^^^^^^^^^^^^^^^^^

Well that didn’t pass the smell test. You listed 2 recession proof industries, therefore you are making stuff up.

#24 Randy on 11.28.19 at 6:54 pm

How are people gonna deal with the Healthcare costs Tsunami that is coming….Demographics, Skyrocketing Degenerative Diseases and a flood of unemployable immigrant families and relatives will be competing for your healthcare spaces…Good Luck and don’t get old or sick….

#25 Yukon Elvis on 11.28.19 at 7:05 pm

City of Vancouver bans plastic bags, straws, foam containers
Vancouver bans plastic bags
The Canadian Press – Nov 28, 2019 / 2:32 pm | Story: 271535
Vancouver is bringing in bans on the use of plastic bags, disposable cups, plastic straws and other single-use items.
Mayor Kennedy Stewart says bylaws passed by city council balance public demand for action on disposable items with the needs of those with disabilities and the business community.
Under the new rules, plastic and compostable plastic straws will be banned on April 22, but food vendors must provide bendable straws upon request to meet an accessibility requirement.
A one-year extension has been granted to allow plastic straws served with bubble tea, allowing more time for the market to provide alternatives.
Single-use utensils can only be given out when requested.
Beginning Jan. 1, 2021, plastic and compostable plastic shopping bans will also be prohibited.
“We have heard loud and clear that reducing waste from single-use items is important to residents and that bold action is needed,” Stewart said Thursday in a news release.
Retailers can still provide paper bags, but they must contain at least 40 per cent recycled content.
Shoppers will be charged a fee of 15 cents for each paper bag in the first year, then 25 cents a bag after that.
The fees for reusable bags will be $1 in 2021 and $2 beginning the next year.
Disposable cups will also come with a 25-cent fee.
The new rules join a previously approved bylaw that takes effect on Jan. 1 that prohibits foam cups and takeout containers.
The city has posted toolkits to help businesses and charities prepare for the bans.

#26 Blacksheep on 11.28.19 at 7:11 pm

Don # 1,

“The world has never been in a better place. All we suffer from now is the following:

– hard times create strong men and women.
– strong men and women create good times.
– good times create weak men and women.
– weak men and women create hard times.

– rinse and repeat!

Don’t recall where I found this but we seem to be on the fourth step”
—————————
It’s from the 1996 Strauss & Howe book on generational behaviors and economics, due to the rotation of social environments:

“The Fourth Turning”

And yes, we are in the fourth Turning…

Little Suzi never understood why great Grandma had always hoarded, crazy stuff like, news papers, rubber bands, old clothes and jarred food in her storm cellar all those years, till she finally died?

Unfortunately, 55 year old Suzanne, is not going to have to wait to long to find out…

Guess what comes next?

#27 Shirl Clarts on 11.28.19 at 7:14 pm

#7 BlogDog123 on 11.28.19 at 4:56 pm

^^^^^^^^^^^^^^^^^^^^^^^^^

There you go. I prefer to call it “Investment illiteracy”. These are folks that stopped learning about money after they figured out the basics – like balancing a cheque book and making credit card payments on time. It’s an epidemic in this country.

Heck, you can’t even convince next of kin family, so forget co-workers. It’s just a foreign concept in their heads filed under “Scheme”, between Ponzi and Pyramid.

Think about all that wasted time on FaceBook that could be spent learning about investments. Instead Mark Zuckerberg is a billionaire. Huh.

#28 Mean Gene on 11.28.19 at 7:17 pm

Come on gold bugs, spin your yarns.

#29 Flop... on 11.28.19 at 7:30 pm

I remember about six months ago, someone said CIBC was gonna dump the penguins.

I’m still seeing the penguins holidaying in Morocco.

Don’t tell me everything I read on here is not true…

M45BC

#30 Flop... on 11.28.19 at 7:46 pm

You didn’t build that blog…

M45BC

“How Much It Costs to Run for President? A 40-Year Timeline.

Michael Bloomberg just announced he’s running for President by spending over $31M in TV ads in a single week. That tops the previous record set by President Obama in 2012. Bloomberg already made headlines spending $100M on an anti-Trump ad campaign, making it seem like 2020 is poised to shatter previous campaign finance records. But just how much money does it take to win the White House?

U.S. presidential campaign spending exploded with Obama in 2008 ($1.3B Democratic total overall). No other campaign has come close to Obama’s first White House run.

Republicans and Democrats raised similar amounts of money until 2008, when Democrats started to pull far ahead of the GOP. Clinton raised almost twice as much as Trump in 2016 and still lost ($621M vs. $364M).

Spending more money than the other party doesn’t always guarantee victory. The biggest spenders lost in 1984, 1996 and 2016.

Michael Bloomberg has already spent $100M on anti-Trump ads, making 2020 another banner election year for campaign expenditures.

We crunched the numbers for each presidential election going back to 1980 for Republicans (red) and Democrats (blue). The inner circle represents how much money the biggest spender in a given party spent to win the primary and general election. The outside circle represents the candidate’s and party’s total outlay for the entire election. We adjusted the numbers for inflation to represent 2019 dollars, making a true apples-to-apples comparison.

Top 5 Most Expensive Presidential Campaigns of All Time

1. Democrats in 2008: $1.3B (won)
2. Democrats in 2016: $884M (lost)
3. Democrats in 2012: $858M (won)
4. Republicans in 2008: $739M (lost)
5. Republicans in 2016: $708M (won)

Top 5 Candidates Who’ve Spent the Most

1. Obama (2008): $898M (won)
2. Obama (2012): $839M (won)
3. Clinton (2016): $621M (lost)
4. Romney (2012): $536M (lost)
5. Bush (2004): $493M (won)

https://howmuch.net/articles/how-much-us-presidents-spent-campaign

#31 Nonplused on 11.28.19 at 7:50 pm

Not all equities held with your broker are protected if that broker goes kaput. RRSP’s are protected, RESP’s are protected, and of course there is the industry insurance but I don’t know how solid that is once brokers start dropping like flies. Shares held in a margin account are not protected and are often “lent out” to short sellers. So even though they appear to be in your account and you get mark to market based on owning them, if all short sellers went broke tomorrow chances are your broker would not be able to recover them. They would still be liable to make good on the money, but if they end up broke that won’t happen.

I don’t know how they treat cash accounts. I believe they can’t lend those shares out but I could be wrong.

What happens behind a short sale is that the broker for the short seller must “locate” shares and borrow them. The shares are then posted to whoever bought them, and they own them. You margin account shows that you own the shares, but they may have been lent to someone else who then sold them “short”. The buyer in that transaction now owns the shares and all you have is a promise by the short seller to repay the shares. Their promise is backed by margin which is strictly enforced. But your shares are not there any longer. Your broker doesn’t have them. And it’s impossible to determine which of your shares are sold and which are really there because brokers pool their margin shares. They don’t hold “allocated” shares for those types of accounts.

In the case of RRSP’s, the broker must hold the shares and cannot lend them out. This rule was enacted specifically so that the failure of a brokerage would not affect the retirement savings held in these vehicles. In turbulent times, it’s another good reason to use this vehicle. You may not know the future value of your investments, but you’ll still have them even if the brokerage fails.

#32 Sail Away on 11.28.19 at 7:50 pm

Hey, the US is launching a MMIWG task force. How do you think Trump will respond if it concludes genocide? Haha

Also- I bet it doesn’t encompass every possible physical orientation or sexual preference…

#33 Sarah Saller on 11.28.19 at 7:55 pm

What is pathetic is people like my cousin who has $500,000 in dividend paying stock and REIT portfolio is all he owns and some $250,000 in house equity but has $600,000 in consumer, mortgage and line of credit debt.

He thinks he is winning but if he gets sick or loses his job or gets disabled or sick prematurely and he is toast. I have $800,000 in laddered GIC’s, bonds, strip bonds and $450,000 in house equity with a modest house no debts of any kind. I worked 6 years longer then him but I could just lay on my sofa tomorrow and don’t work anymore and be financially fine. I would like more than 3% to 3.5% GIC rates I got this year and 2.8% to 2.9% at most today but as long as I am debt free and $3,000 a month gaining, I am fine. If I can’t achieve this, expenses, costs getting the axe by 75% at minimum, move to cheaper place, have less stuff, get rid of stuff that is just crap.

Just like about the threat how deflation is so bad, people stopping buying to get a cheaper price and never buy, I will be a perpetual living on so little that they wish they don’t become like me. This scares the economy pushers when people talk and think like me but they do sure like making people’s life more difficult every year. We talk about them all the time.

If someone today is giving you 5% to 6% yields, rates then it is a reason for that. It is regarded in higher risk. It is that simple.

#34 crowdedelevatorfartz on 11.28.19 at 8:09 pm

@#22 Swirl Charts
“You listed 2 recession proof industries….”
++++

Hmmm, I only saw restaurants, beauty salons,and movie theaters….

Recession proof? Dream on.

I guess I missed law enforcement and Porta Potty Vacuum Trucks……..

I talked to several suppliers this week when placing orders.
Nov. has been an unusually slow month.

#35 crowdedelevatorfartz on 11.28.19 at 8:12 pm

@#31 Sail Away
” I bet it doesn’t encompass every possible physical orientation or sexual preference…”
+++++

No, democracies leave that up to their educational systems to indoctrinate the masses.

#36 –YAK– on 11.28.19 at 8:14 pm

@#20 Sail Away on 11.28.19 at 6:21 pm
_____________________________________

it’s just you.

#37 crowdedelevatorfartz on 11.28.19 at 8:21 pm

@#24 Yukon Elvis
“City of Vancouver bans plastic bags, straws, foam containers…..Vancouver bans plastic bags.”
++++

One wonders how “recyclable” a blood soaked piece of cardboard packing will fare when consumers arrive home with the freshest steak for bbq-ing.
Methinks it will end up in the garbage with aluminum cans, dirty glass jars, etc etc etc.
I have given seminars where we provided free food and drink.
We also had three large cans at the door where people could place their sorted recyclables….
Pfffft.
50% left their finished plates, drinks, etc. on the table….the other 50% dumped everything, recyclable or garbage into the nearest can by the door……

Our own laziness will doom the planet.

#38 Doug t on 11.28.19 at 8:28 pm

#16 Bob Dog

That’s about right – can’t buy TIME so in 3 years I plan on doing exactly that

#39 Doug t on 11.28.19 at 8:31 pm

#24 Yukon Elvis

???????? I think your on the wrong blog or smokin cr*ck

#40 crowdedelevatorfartz on 11.28.19 at 8:51 pm

Ladies and Gentlemen
We havent reached a “soft landing” yet …but …not to worry…… the govt doesnt want a “crash”

https://theprovince.com/opinion/columnists/douglas-todd-vancouvers-soft-landing-in-housing-prices-remains-elusive/wcm/1c30ea43-8024-49a4-84b5-434a0b6618cd

#41 saskatoon on 11.28.19 at 8:57 pm

free, garth?

nice try.

#42 Sunshine on 11.28.19 at 9:27 pm

Getting heloc and investing into balanced diversified portfolio makes sense. Over a longer time horizon, returns are good but you end up paying lot of interest as well – almost equal to the amount borrowed.
Tax deductions and all that I get it but over the long term you pay a lot of interest – wouldn’t it make sense to just invest whatever you have instead of taking out heloc?

#43 Blackdog on 11.28.19 at 9:39 pm

@Tater, regarding your ongoing dialogue with IDHCT, don’t waste your time. IDHCT doesn’t understand the etiology of addiction and never will. Good for you for calling him out though. Not worth getting frustrated over however.

#44 VicPaul on 11.28.19 at 9:57 pm

#18 Don Guillermo
Possibly Marcus but every generation is dealt a different hand and every individual in the generation is dealt a different hand. Have to look forward to play the game and not lay blame on the past. In my opinion, the biggest mistake boomers made is giving their children everything except responsibility.
******
Word. Many are seeking responsibility.
A friend of mine has been on a speaking tour this past year and that is one of his foundational beliefs.
We should be grateful to be here and be able to do something, create something, contribute something – life’s a struggle; be the absolute best person you can
be – for you, your family, your community, humankind.
Best contribution I’ll ever make are my three adult millenials – and I see the challenges for them; but also the opportunities.
One foot in front of the other, 110%, keep your stick down, it’s a two-way game…and for goodness sake, show a little sportsmanship. Geez, sound like Knute Rockne.

M55BC

#45 Fortysomethingsense on 11.28.19 at 9:57 pm

Garth question on this I’ve never understood. If I have a brokerage account with a big bank through which I own ETFs, and the bank goes under, wouldn’t I get the assets (ETFs) returned to me?
Yes it may take some time but it doesn’t make sense to me the bank keeps my securities.
I get that deposit accounts are different because the bank doesn’t have enough assets to cover all the deposits. But for brokerage accounts the assets are there and accounted for. And are MINE.

Or is this just wishful thinking on my part and if the bank goes under tough noogies for me?

#46 ImGonnaBeSick on 11.28.19 at 10:13 pm

#19 Tater on 11.28.19 at 6:20 pm

Commenters beware.. tater gets a bit triggered when God, addiction, or hard work are mentioned.

Maybe it’s time to stop fighting with the invisible people on the other side of your phone mate… Just sayin’

#47 Fortysomethingsense on 11.28.19 at 10:15 pm

Ignore my last comment… seems I had reading comprehension issues tonight.

#48 Blackdog on 11.28.19 at 10:17 pm

@Tater, regarding your ongoing dialogue with IDHCT, don’t waste your time. IDHCT doesn’t understand the etiology of addiction and doesn’t want to. Good for you for calling him out, but not worth getting frustrated over.

#49 IHCTD9 on 11.28.19 at 10:18 pm

I suppose the hard luck story of the Mils will carry on forever as it’s told today. The Mils have it tough, debt, tuition, expensive RE, crap job market et. al.

The reality is that these are big city, and big education Mil problems. The rest of ‘em frankly are doing great.

Every single day I pass several Mil Men and Women wizzing by in 50-70k pickups. They own decent houses (not mansions) too. Plenty have kids on the go and Grizzly 700’s in the garage on top.

Sure there is probably a lot of debt there too, but the Mils have the best rates and the most favourable financing terms in the history of the human race. The biggest benefit this generation possesses is the virtually universal expectation that their Women get educated and work. It’s the biggest boon to the benefit of married Men since the dawn of time. Millennial Ladies bring home more bacon than any Generation of Women before them. Pensions and benefits too. More bacon than their hubbies drag home in many cases.

Outside the big metros of Canada, the fairly ubiquitous dual income Mil family unit is doing better than any Boomer did at their age.

I haven’t mentioned the young mid 20s couple down the road that moved in a few years back in quite a while. Guy is a welder, wife is healthcare. Bought a basic house that needed a bit of work, mortgage payment was 800.00/mo. They probably bring home 100k minimum. New shingles on the house now (installed by homeowner and buds), he built a big garden shed out of free pallets. I watched it go up, now that it’s sided and roofed, you’d never know. Nice truck, sweet KLX 450R in the garage.

These kids have it made in the shade.

#50 Dr V on 11.28.19 at 10:26 pm

117 Dutchy

“Sisters residence sold recently in LML.
Assessed value over $1M
My home Montreal island assessed value $0.5M
Residential taxes paid about the same.”

Now you’re gettin’ it! Look at the second bar graph in the link you posted, Van and Montreal very similar taxes on typical home. Quebec city lower, Calgary and Edmonton a little higher. Ontario out to lunch.

#51 Sail Away on 11.28.19 at 10:28 pm

#35 –YAK– on 11.28.19 at 8:14 pm
@#20 Sail Away on 11.28.19 at 6:21 pm
_____________________________________

it’s just you.

——————————–

Story of my life….

#52 crowdedelevatorfartz on 11.28.19 at 10:36 pm

@#48 IHCTD9
“These kids have it made in the shade….”
++++

Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…

#53 DON on 11.28.19 at 10:38 pm

#33 crowdedelevatorfartz on 11.28.19 at 8:09 pm

@#22 Swirl Charts
“You listed 2 recession proof industries….”
++++

Hmmm, I only saw restaurants, beauty salons,and movie theaters….

Recession proof? Dream on.

I guess I missed law enforcement and Porta Potty Vacuum Trucks……..

I talked to several suppliers this week when placing orders.

Nov. has been an unusually slow month.
*******************

Retails sales slowing in BC and across Canada. Financial Post out with a gloomy reduction in growth for Canada.

Some media outlets seem to be experiencing their own version of Schizophrenia (one week good, one week bad and rinse and repeat). Best information is boots on the ground at the suppliers. Yet, people are still packing the malls, hard to break that feel good habit. Two of my acquaintances are about to list to get out of the house market and realize the gains. A third was retired with a sizeable mortgage. He plans on listing and moving to a cheaper/smaller place with no mortgage or rent and leave the country half year.

#54 VicPaul on 11.28.19 at 10:46 pm

If someone today is giving you 5% to 6% yields, rates then it is a reason for that. It is regarded in higher risk. It is that simple.
******
Um, no. Enbridge pays me north of 6% every quarter with a divvie growth rate of 6-8% p/a. It has as large a moat as CN or CP – as evidenced by the failure of Keystone XL, Northern Gateway, et al. to get built over the last decade. I suspect those pipes, after oil dies in 30/40 years, will be pushing Nat Gas until the next century.

M55BC

#55 WUL on 11.28.19 at 10:46 pm

Turner,

I had to comment. Not a suck up. Just the straight goods.

You write well. Great piece tonight.

If I had your writing skills I “coulda been a contender” as a lawyer.

You shoulda gone to Osgoode Hall after your useless liberal arts degree.

Thx,

WUL

#56 Matthew Smith on 11.28.19 at 10:56 pm

DELETED

#57 IHCTD9 on 11.28.19 at 10:59 pm

#19 Tater on 11.28.19 at 6:20 pm

Oh my, you’ve very much missed the point. Though I imagine that’s a pretty common occurrence for you, so must feel comfortable.

You seem to think hard work can cure addiction. You are wrong. But keep believing you’re right, contrary to all evidence. You wouldn’t be a conservative if you didn’t!
————

Tater my Man, you really need to up your invective game. You’re already reduced to calling me a dumb conservative? I suppose if you knew more about me you’d also be gleefully insulting my appearance alongside your jello brained “sky daddy” comments. Then you’d challenge me to a bare knuckle brawl like you did to one of the other posters here.

Seriously, you are shaping up to be one of those dudes where debate can be won with a little provocation followed by silence.

Anyway, if you think feeding crackheads an endless supply of free junk will cure them, be my guest.

A solid day’s work is miles ahead of sitting in the gutter jacked up on government issued crack any day imho.

#58 IHCTD9 on 11.28.19 at 11:07 pm

#47 Blackdog on 11.28.19 at 10:17 pm
@Tater, regarding your ongoing dialogue with IDHCT, don’t waste your time. IDHCT doesn’t understand the etiology of addiction and doesn’t want to. Good for you for calling him out, but not worth getting frustrated over
——-

I surely posses the single most butchered handle on this blog.

#59 IHCTD9 on 11.28.19 at 11:45 pm

#45 ImGonnaBeSick on 11.28.19 at 10:13 pm
#19 Tater on 11.28.19 at 6:20 pm

Commenters beware.. tater gets a bit triggered when God, addiction, or hard work are mentioned.

Maybe it’s time to stop fighting with the invisible people on the other side of your phone mate… Just sayin’
—- – —

That’s nothing, if you really want to see some flying eyeballs; just mention that the Liberals are filling your bank account with thousands and thousands worth of tax free cash handouts that you intend to expense via the acquisition of certain knobby tired off road machines.

KABOOM!

#60 Lost...but not leased on 11.29.19 at 12:00 am

Four abandoned Toronto properties sold to auction

https://www.ctvnews.ca/video?playlistId=1.4707875

#61 DON on 11.29.19 at 12:12 am

#45 ImGonnaBeSick on 11.28.19 at 10:13 pm

#19 Tater on 11.28.19 at 6:20 pm

Commenters beware.. tater gets a bit triggered when God, addiction, or hard work are mentioned.

Maybe it’s time to stop fighting with the invisible people on the other side of your phone mate… Just sayin’
*******************

Nice…now who’s gonna warn us about you.

Attack the argument, not the person.

#62 Jenny Wang on 11.29.19 at 1:01 am

Post election numbers prove that everything said about our booming Liberal economy was a lie. Propped up by massive spending announcements and Yuge increases in Trudeau borrowing ( this was on top of deficits) the facts is the economy is tanking fast. Trudeau has screwed the pooch by killing every major revenue generator.

https://www.bnnbloomberg.ca/canada-s-economy-faces-a-prolonged-period-of-sluggish-growth-1.1354812

Fake employment numbers, false announcements, illegal interference by an ex President . The media collusion to spread lies is truly dispicable. And, now the chickens have come to roost. Billions more debt, consumers in deep doo doo. Good choice Canada.

#63 Ronaldo on 11.29.19 at 1:46 am

The big blue bank pays 1% on its high-interest savings account. That’s half the inflation rate.
——————————————————————–
My balanced fund net of fees is 15.77 ytd and 2.84 mtd. RBC’s balancce fund is up 14.72 ytd and 2.40 mtd.

#64 Ronaldo on 11.29.19 at 2:03 am

#12 MF

This blog is generally about real estate. I am of the camp that the real estate gains we have seen are 100% unearned, and only the product of low interest rates and garbage policy. Tax it further. None of it was earned. This is my view of RE only, and not of anything else in our economy.

MF
—————————————————————-
I agree totally. Tell that to Christy Clarke. The one who didn’t want to do anything about the housing bubble cause she didn’t want people to lose the equity they had gained. She was a lot to blame for the mess Vancouver is in today with her keep a blind eye policy with the money laundering that was going on and all the other crap that the real estate industry were involved in. Now we have a government that has the guts to do something about it and you will see that affordability will come back to the markets but it will take a few years. It has a long ways to go down yet.

#65 Ronaldo on 11.29.19 at 2:10 am

#20 Sail Away

As my uncle used to say to whiners: “Life is hard. Even harder when you’re stupid” .

Most of your results in life depend on your own decisions. Make good ones. Find successful people and ask their advice. Then take it.
—————————————————————-
Your uncle was a wise man. Whiners will always try to find others to blame for their own failures in life. Best to just ignore them.

#66 Ronaldo on 11.29.19 at 2:21 am

#36 crowdedelevatorfartz

Our own laziness will doom the planet.
——————————————————————
When the next major astroid hits that will be the end to all our worries and in 100 million years the earth will recover once again and humanity can start doing the same thing all over again.

#67 Ferdinand McMillan on 11.29.19 at 2:49 am

Sell your house to fund your retirement? Better go now because the numbers going forward are not in Boomers favor. The Boomers outnumber Gen X , Y, Z , and without buyers, prices collapse.

MarketWatch: Planning to sell your house to fund your retirement? Think again.
https://www.marketwatch.com/story/planning-to-sell-your-house-to-fund-your-retirement-think-again-2019-11-27

#68 BillyBob on 11.29.19 at 3:13 am

#12 MF on 11.28.19 at 5:20 pm

This blog is generally about real estate. I am of the camp that the real estate gains we have seen are 100% unearned, and only the product of low interest rates and garbage policy. Tax it further. None of it was earned. This is my view of RE only, and not of anything else in our economy.

MF

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

I agree that a debt-based economy is unsustainable.

But let’s get real here – your opinion on taxing real estate is transparently self-serving. You wouldn’t be advocating taxing it if you had some and hadn’t missed the boat and gotten shut out of the market your parents bought in.

#69 Stan Brooks on 11.29.19 at 5:16 am

#67 BillyBob on 11.29.19 at 3:13 am

I agree that a debt-based economy is unsustainable.

But let’s get real here – your opinion on taxing real estate is transparently self-serving. You wouldn’t be advocating taxing it if you had some and hadn’t missed the boat and gotten shut out of the market your parents bought in.

People are self serving, it is in our nature.

Real estate bragging should and will be taxed.

As for the delusional “shut out of the market, missed the boat” etc. stupidities:

1. In order to bring new and/or retain top talent a place – city/country has to be attractive in terms of income, taxes, cost of living.

2. People with skills will not compromise and simply move from a place that becomes more and more un-affordable to greener pastures/there are plenty and nicer, greener pastures around/, along with their capital.

Yes, life will go on without them and without capital, but it won’t be pretty.

Yes, the stupid/people that are ‘ahead’/people with no skills or perspective elsewhere will stay, loaded with FOMO on real estate (what else is left?) and will keep dreaming about ‘success’ and ‘wealth’ while paying huge taxes on that virtual ‘wealth’.

Cheers,

#70 MF on 11.29.19 at 6:56 am

#67 BillyBob on 11.29.19 at 3:13 am

#71 Gravy Train on 11.29.19 at 7:05 am

#20 Sail Away on 11.28.19 at 6:21 pm
“[…] When I was struggling up the ladder not so long ago, it would never have occurred to me […] to blame others […] for our difficulties. As my uncle used to say to whiners: ‘Life is hard. Even harder when you’re stupid.’ Most of your results in life depend on your own decisions. Make good ones. Find successful people and ask their advice. Then take it.” Words to live by! And here I mistakenly thought you were a Trump supporter! :)

#64 Ronaldo on 11.29.19 at 2:10 am
“[…] Whiners will always try to find others to blame for their own failures in life. Best to just ignore them.” It’s not easy just to ignore Trump supporters, as there are so many of them (40% of the U.S. electorate). :)

#72 MF on 11.29.19 at 7:09 am

#67 BillyBob on 11.29.19 at 3:13 am

It’s true.

This is what should be done:

1) Get rid of CMHC. It’s a vestige from a previous era and serves zero purpose in 2019 except to facilitate banks into lending more. It has to go and is essentially worthless.

2) Get rid of the capital gains exemption for primary residences. Real estate should not be special.

3) All the plans designed to “get people into home ownership” like the first time homebuyer’s plan should be ended, since they have done the opposite and are pointless.

4) There should be way more transparency in the real estate industry. Garth has written about this all the time. Numbers and narratives are spun 24/7 in that industry, and what filters to the average joe is a 100% lie. Treb and all the others boards should be taken to court mercilessly.

5) Raise interest rates to where they should be. The artificial surpression of rates is a dumb policy that has just resulted in an asset bubble in real estate (among other things) anyways. It’s a policy that should have ended in 2012 at the latest. Rates being where they are rnow is from government caving from pressure put on from developers, insurers, banks and everyone else that feeds of this unnatural state.

Implement all those and watch prices get halved overnight. The gains experienced in the last 15 years are totally unnatural and unwarranted IMO.

MF

#73 MF on 11.29.19 at 7:14 am

#63 Ronaldo on 11.29.19 at 2:03 am

Agreed. Same thing on a national level. All parties pandering to RE owners, which was really the RE industry, during the last election was sad.

Actually, the whole election from beginning to end was sad!

MF

#74 M.T. on 11.29.19 at 7:34 am

*** The biggest benefit this generation possesses is the virtually universal expectation that their Women get educated and work. It’s the biggest boon to the benefit of married Men since the dawn of time***

Ya gotta be kidding me. “The greatest gift this generation has is that the economy sucks so bad even women are forced into the workplace… all so they can buy more toys”. Worst worldview I’ve seen today.

#75 Ponzius Pilatus on 11.29.19 at 8:26 am

#36 crowdedelevatorfartz on 11.28.19 at 8:21 pm
@#24 Yukon Elvis
“City of Vancouver bans plastic bags, straws, foam containers…..Vancouver bans plastic bags.”
++++

One wonders how “recyclable” a blood soaked piece of cardboard packing will fare when consumers arrive home with the freshest steak for bbq-ing.
Methinks it will end up in the garbage with aluminum cans, dirty glass jars, etc etc etc.
I have given seminars where we provided free food and drink.
We also had three large cans at the door where people could place their sorted recyclables….
————–
Just wondering what kind of seminars you’d be giving.
You’re handing out free gas masks, I hope.

#76 IHCTD9 on 11.29.19 at 9:04 am

#73 M.T. on 11.29.19 at 7:34 am
*** The biggest benefit this generation possesses is the virtually universal expectation that their Women get educated and work. It’s the biggest boon to the benefit of married Men since the dawn of time***

Ya gotta be kidding me. “The greatest gift this generation has is that the economy sucks so bad even women are forced into the workplace… all so they can buy more toys”. Worst worldview I’ve seen today.
___

Women are getting PHD’s and working as Engineers and Doctors because the economy sucks?

Don’t discuss your opinions with any 2nd or 3rd wave feminists….

#77 Stan Brook's Psychiatrist on 11.29.19 at 9:10 am

#68 Stan Brooks on 11.29.19 at 5:16 am
#67 BillyBob on 11.29.19 at 3:13 am

“I agree that a debt-based economy is unsustainable.

But let’s get real here – your opinion on taxing real estate is transparently self-serving. You wouldn’t be advocating taxing it if you had some and hadn’t missed the boat and gotten shut out of the market your parents bought in.”

You hit the nail on the head Billy Bob with poor Stanley. To make matters worse, Stanley is long in the tooth. Forget his parents, Stanley, a boomer, missed out on the real estate bonanza. That’s why he is filled with angst, he knows he blew it big time and unlike millennials who never had a chance at buying real estate at sane prices, Stanley did and missed the boat…

#78 IHCTD9 on 11.29.19 at 9:25 am

#51 crowdedelevatorfartz on 11.28.19 at 10:36 pm
@#48 IHCTD9
“These kids have it made in the shade….”
++++

Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…
___

No worries – so many of these Mils that I see in ‘da hood are tradespeoplekind. They already moonlight like crazy and make more bank “libre d’impôt” than the CMB in “New Jack City”.

They’re so far ahead of the game they really can’t lose no matter what the government does.

#79 IHCTD9 on 11.29.19 at 9:39 am

#74 Ponzius Pilatus on 11.29.19 at 8:26 am

Just wondering what kind of seminars you’d be giving.
You’re handing out free gas masks, I hope.
___

Probably the same kind of seminars I usually do:

“How to squeeze 13 MPG out of your 3/4 ton”
“Mossberg: 500 or 590?”
“In a world of chaos and weakness – YAMAHA”
“Back yard bunkers and how to fill them”

No the gas masks will cost you.

#80 Dutchy on 11.29.19 at 9:48 am

#49 Dr V

And still…..
The owner (of the same asset) home in Westmount is paying twice the $$ amount every year as someone in the LWL.

#81 Eddie on 11.29.19 at 10:12 am

#68 Stan Brooks on 11.29.19 at 5:16 am

“1. In order to bring new and/or retain top talent a place – city/country has to be attractive in terms of income, taxes, cost of living.”

Guess that’s why Toronto is a major destination spot for international students. They are coming here in droves and almost all have well off parents who can afford to send them here. The Ontario government has wisely decided to make them the new immigration stream for the province.

https://www.youtube.com/watch?v=7eTki_j-Ruk

#82 Sail Away on 11.29.19 at 10:14 am

#51 crowdedelevatorfartz on 11.28.19 at 10:36 pm
@#48 IHCTD9

“These kids have it made in the shade….”
++++

Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…

———————————-

IHTCD is right. The Mil engineers, doctors, dentists and lawyers I know seem to doing just fine as well.

Could it be that the complainers are the same subset of any generation who get further and further behind their peers? In my time, they didn’t have a voice. Now it seems they come to the internet.

#83 Shawn Allen on 11.29.19 at 10:18 am

The best screen name award goes to…

crowdedelevatorfartz

Who undeniably has the best nom de “plume”

#84 Mattl on 11.29.19 at 10:20 am

#8 WelcometoSlurrey on 11.28.19 at 5:01 pm
Garth, I would like to see you do a post on the huge discrepancy between median household income in the lower mainland vs home prices. How does any of it make sense ? Stats can reports median household income at approx. 73000. This results in a take home pay of approx. 4500 a month for a family.

Ownership at 73000 gross income. Forget about it, most people have trouble even at 100 K gross income ( and this would be an above average family ?).

Even if renting is cheaper than owning at this current moment in time. Rent is still anywhere between 2500 – 3000 for a decent place, add in your utilities plus basic vehicle expenses, some groceries …… whats left, most people would be in the negative, but here you still see people in nice shiny homes and new cars ? Is the median household income incorrect or is there something I’m not seeing.

————————————————————

The best areas on YVR and the LM are not being bought by median family incomes.

And if you have ever been to Maple Ridge, Coquitlam, etc you’d see that everone has a renter. So the math is, mortage/taxes at 3k per month – rental income of 1200 = 1800 bucks.

Money is cheap, not sure why everyone is so surprised that a family making 100K can carry a 800K home. They bought at 500k, which is less then 3K a month to carry and they have another family in the house. Contrary to blog knowledge, most Canadians are doing fine on their mortgage. Overwhelming majority have been in the market for 10+ years. The median mortgage is 180K and 40% of Canadians have no mortgage.

National averages are meaningless when applied to urban areas such as Toronto and Vancouver. – Garth

#85 Phylis on 11.29.19 at 10:54 am

Along the journey of life expect a bump or two in the road, unless you are parked. Plan accordingly, make wise choices. Groaning is a very low form of motivation. You know who you are.

#86 Jenny Wang on 11.29.19 at 10:56 am

“They Shoot ETFs, Don’t they”?

Recently it was suggested that stocks frequently get ‘disappeared’ , and that only ETFs are safe from market forces.

Bloomberg: 1,000 Dead ETFs Is Cause for Celebration.
https://www.bloomberg.com/view/articles/2019-11-29/growing-rate-of-etf-closures-shows-a-thriving-market

#87 Stan Brooks on 11.29.19 at 11:34 am

#80 Eddie on 11.29.19 at 10:12 am
#68 Stan Brooks on 11.29.19 at 5:16 am

“1. In order to bring new and/or retain top talent a place – city/country has to be attractive in terms of income, taxes, cost of living.”

Guess that’s why Toronto is a major destination spot for international students. They are coming here in droves and almost all have well off parents who can afford to send them here. The Ontario government has wisely decided to make them the new immigration stream for the province

That was quite amusing considering that Canadian graduates can’t find jobs here due to the state of the economy/or the lack of such, now apparently the kids of ‘well off’/wealthy foreigners want to study here and then look for a job, sorry ‘career’.

And of course looking to buy the overpriced shacks of the delusional brain frozen idiots/debt surfs.

Sure, whatever you say.

————————————–

#76 Stan Brook’s Psychiatrist on 11.29.19 at 9:10 am

That was quite entertaining, keep up the good work.

Bhahahahahahahahahahahahhahaa.

#88 Your buddy on 11.29.19 at 11:38 am

#56 IHCTD9 on 11.28.19 at 10:59 pm

“Tater my Man, you really need to up your invective game. You’re already reduced to calling me a dumb conservative?”

The correct term would be hypocritical conservative. A person who gladly enjoys the income of his wife’s current gov’t job and future pension while bragging about how little income tax he pays. Let suckers pay their share of taxes so your household can benefit seems to be your mantra. If anyone wants to know what you look like, just google hypocrite and your face pops up…

#89 Ronaldo on 11.29.19 at 12:04 pm

#72 MF on 11.29.19 at 7:14 am
#63 Ronaldo on 11.29.19 at 2:03 am

Agreed. Same thing on a national level. All parties pandering to RE owners, which was really the RE industry, during the last election was sad.

Actually, the whole election from beginning to end was sad!

MF
—————————————————————
Well, I can tell you that the realtors in the lower mainland are going to have a pretty skimpy Christmas this year as even the condo market is sucking wind. One realtor I know had 70 showings to one client and finally they put an offer on a condo just over 1 mil and only one other offer besides theirs. They refused to offer more and the other people were accepted even though the offer was slightly lower. The deal ended up falling through on the financing and the other people decided not to buy. The seller took the condo off the market as they felt they should get more. I believe they will be very sorry for that decision. FOMO has dissappeared from the markets along with bidding wars. A long way to go yet and with the policies of this current government we will see a lot more downside to this market. Finally.

#90 Ronaldo on 11.29.19 at 12:11 pm

#76 Stan Brook’s Psychiatrist on 11.29.19 at 9:10 am

That’s why he is filled with angst, he knows he blew it big time and unlike millennials who never had a chance at buying real estate at sane prices, Stanley did and missed the boat…
—————————————————————–
There are many places in Canada that are totally affordable if people are willing to move and work there. There are other places to live than Toronto and Vancouver. Many of my own millennial nieces and nephews who lived outside these cities are doing just fine.

#91 Ponzius Pilatus on 11.29.19 at 12:33 pm

Seems IHTC and Fartz are a tandem team now.
Get 2 for the price of one.
Just in time for Black Friday.

#92 Mattl on 11.29.19 at 12:48 pm

National averages are meaningless when applied to urban areas such as Toronto and Vancouver. – Garth

—————————————————————

Sure, mortgages are higher in YVR and TO but so is the share of national equity, all 6 trillion of it. I’d much rather a 500K mortgage @ 3% on a 1MM home then 180K mortgage on a 250K home.

My biggest RE regret is I’ve always bought well under what we were approved for. Like half. Should have gone big 10 years ago!

#93 oh bouy on 11.29.19 at 12:48 pm

@#81 Sail Away on 11.29.19 at 10:14 am
#51 crowdedelevatorfartz on 11.28.19 at 10:36 pm
@#48 IHCTD9

“These kids have it made in the shade….”
++++

Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…

———————————-

IHTCD is right. The Mil engineers, doctors, dentists and lawyers I know seem to doing just fine as well.

Could it be that the complainers are the same subset of any generation who get further and further behind their peers? In my time, they didn’t have a voice. Now it seems they come to the internet.
__________________________________

Same here in the city.
mils here are doing great.

#94 not 1st on 11.29.19 at 12:56 pm

And theres your recession, BoC behind the curve again.

https://business.financialpost.com/news/economy/newsalert-canadas-gdp-growth-slows-in-third-quarter-to-1-3-annualized-pace?video_autoplay=true

#95 Sold Out on 11.29.19 at 1:12 pm

#81 Sail Away on 11.29.19 at 10:14 am
#51 crowdedelevatorfartz on 11.28.19 at 10:36 pm
@#48 IHCTD9

“These kids have it made in the shade….”
++++

Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…

———————————-

IHTCD is right. The Mil engineers, doctors, dentists and lawyers I know seem to doing just fine as well.

Could it be that the complainers are the same subset of any generation who get further and further behind their peers? In my time, they didn’t have a voice. Now it seems they come to the internet.

————————————————————–

Don’t make the mistake of thinking that just because doctors, lawyers, engineers, etc are doing okay now, that they will continue to enjoy the same conditions in future.

Dentists – When no one has employee benefits, who goes to the dentist? This is already a problem, that’s why dentists are doing botox injections

https://www.rcinet.ca/en/2013/03/26/surplus-of-dentists-brings-changes-to-the-profession-in-canada/

Doctors – Artificial capping of numbers keeps wages high, but increasing immigration pressures say that will have to change. The same population increase via immigration will bring in lots of foreign qualified MDs, who will be hungry and will be much more amenable to working where they are told(Alberta is about to learn this). AI is also predicted to be a huge disruption.

https://www.cbc.ca/news/canada/edmonton/alberta-doctors-criticize-proposed-new-pay-plan-1.5342010

https://scopeblog.stanford.edu/2018/09/11/will-doctors-be-replaced-by-algorithms/

Lawyers and AI

https://www.canadianlawyermag.com/news/opinion/how-ai-is-shaking-up-legal-practice/306128

Engineers and AI

https://medium.com/archieai/artificially-intelligent-engineers-how-ai-will-kill-all-engineering-jobs-3fd6dac55a06

The myth that education will protect you from off-shoring of jobs is just that – myth. The highly educated were fine with the loss of manufacturing and low-skilled jobs to globalization, but if they think that they are untouchable, they’re in for a shock. Kids will be much better off learning how to repair and maintain the systems that will replace these roles. Canadian universities will be for foreign students looking to immigrate, not locals.

https://www.theglobeandmail.com/politics/article-foreign-students-transforming-canadas-schools-immigration/

#96 Remembrancer on 11.29.19 at 1:13 pm

#78 IHCTD9 on 11.29.19 at 9:39 am
“Mossberg: 500 or 590?”
———————————–
As if, – 590 better in every column that matters…

#97 Sold Out on 11.29.19 at 1:48 pm

Best industry to go into now, and in the future?

Getting rid of the world’s infinite supply of dead bodies.

No, not with a bag of Portland cement, or a roll of chain link fencing! Funerals cremations, green burials, burning Viking long boats, etc. It’s a license to print money, and every single human being, both the born and yet to be born, is going to leave behind a bag of meat that will have to be disposed of in some fashion.

#98 Stan Brook's Psychiatrist on 11.29.19 at 2:39 pm

#86 Stan Brooks on 11.29.19 at 11:34 am

“That was quite entertaining, keep up the good work.

Bhahahahahahahahahahahahhahaa.”

Glad you can laugh at the fact as a boomer you missed out on the housing lottery. Guess the alternative is to admit how much of a loser you are for doing so. That must be way to painful Stanley. Keep up your comments, they make great comedy for this blog…

#99 Sail away on 11.29.19 at 3:03 pm

#94 Sold Out on 11.29.19 at 1:12 pm
#81 Sail Away on 11.29.19 at 10:14 am
#51 crowdedelevatorfartz on 11.28.19 at 10:36 pm
@#48 IHCTD9

—————————————————
“These kids have it made in the shade….”

—————————————————
Shhhhh
Dont tell the Mils in the city….they’ll want to tax their brethren…
—————————————————
IHTCD is right. The Mil engineers, doctors, dentists and lawyers I know seem to doing just fine as well.
—————————————————

Don’t make the mistake of thinking that just because doctors, lawyers, engineers, etc are doing okay now, that they will continue to enjoy the same conditions in future.

—————————————————-

Ok, sure. Or in other words, “these professions are doing really well now, but in some unrealistic and theoretical futures that some random people imagined, those types of jobs could be in jeopardy”

You work with that. I’ll stick with engineering. And I’ll take a large latte, please, with a side order of financial freedom.

#100 Timmy on 11.29.19 at 8:43 pm

DELETED

#101 Tony on 11.30.19 at 7:13 pm

CDIC is useless so all can do is stuff a lot of money into Manitoba credit unions and hope they back up their claim of all your money is insured by the province. I’m guessing maybe one million per institution might be safe as the first domino or credit union goes under. Who knows?

#102 Scott on 12.01.19 at 10:16 pm

@19 Don
I think the best way to compare different generations is not to look at an individual because like you said they vary so greatly.
I would look at numbers and those clearly show that the average Canadian now has a much tougher path to the same success enjoyed by a similar Canadian 40 years ago.
More difficult is the qualitative side of things. People back then had one tv in the house, maybe. International travel was extremely rare. They didn’t have access to all the information of humankind’s history in their pocket. People lived shorter lives etc etc. Then again you could drop out of high school and still find a job and support a family. Apples to oranges really. Like you said better to look forward and try and build a country/world that creates a better future for the next generation rather than argue whether the last generation blew doing so for us haha.