Feelings

It doesn’t take long reading comments here to understand we’re obsessed with real estate. Yes, even when the whole raison d’être of this pathetic blog is balance. These days that’s a quaint, dusty notion. Everybody wants all-in on something. It could be GameStop. Or crypto. But usually, for the bulk of Canadians, it’s a house.

The virus made this a compelling strategy. But the pandemic will end. This year. So it’s worth understanding why our emotions have been so hoodwinked by the idea of owning property. Like with Alex. We’ll do him in a few minutes.

First, why do we think as we do about the infallibility of houses? After all, financial assets (like equities) have a vastly better long-term performance. And they’re liquid. Cash flow. You can sell in a keystoke with no realtors, open houses or deplorables poking through your bathroom. No property tax. No condo fees, insurance, utilities, gutters to clean or furnaces to fix. No land transfer tax when buying. No giant commission to sell. Yes, you can live there. But renting is a way better deal. So why are we smitten?

Well, Covid has made people want space. Cheap mortgages have reduced the cost of debt. WFH has fostered nesting. Got it. But these (as stated) are temporary things. People walking into seven-figure mortgages – all too common – and heaping their net worth into a house should be careful. The future might yield some surprises.

Anyway, here’s why real estate makes us lose our minds and 70% of Millennials crave some.

First, the media – mainstream and social – is all over this. Houses are stable, safe and profitable. Stocks (and financial stuff) are risky, volatile and dangerous. When real estate goes up fast it’s a good-news story. When stocks hit a new record high, it’s the prelude to a crash. The bias is palpable. Look at TV’s love affair with flippers.

Second, your parents. They’re hopeless. And, sadly, this is where a ton of people garner all their financial advice – from moms & dads who grew up in a period of insane inflation and economic expansion and blindly rode a one-trick pony into retirement. Buy a house, they always say. Worked for us. And so money illiteracy is passed on.

Third, the costs of housing are always suppressed by the industry while the benefits are exaggerated. No surprise there. Canada has hundreds of thousands of realtors now, all surviving on commission. They’re paid to sell assets, not be your pal. They’ll seldom tell you that throwing all you’ve got into a house means no diversification, and therefore enhanced risk. The costs of ownership, or closing fees, are almost never discussed when buying. Nor will the typical realtor remind you that 1.5% mortgages are doomed or that cities decimated by the virus will be jacking taxes (property, and transfer) or creating new ones (vacancy).

Of course, you can live in real estate. It generally increases in value over time. There’s a big tax break if you sell for a profit, but no ability to write off the significant costs of ownership. Renting is still a huge winner in terms of cash flow, confirmed by the fact that more than 50% of landlords subsidize tenants and are in negative cash flow. Meanwhile governments have become way more renter-friendly, as evidenced by no-eviction rules during the pandemic, rent controls and regulatory bodies tilted against owners.

In short, there are reasons to buy. Reasons not to buy. Renters aren’t losers. Owners take more risk and don’t always win. And in retirement everybody needs steady cash flow far more than they need to own a roof. You can always rent accommodation. You cannot rent an income. Because real estate – at today’s nosebleed levels, especially – involves taking on a whack of debt, job loss, sickness or other reversals can be life-altering events when there’s a mortgage in the balance. Finally, don’t think our virus-addled world will stay this way, in which FOMO is pandemic-induced. Houses can get illiquid. You sure don’t want that happening in the year you need to cash in to finance a layoff or quit your job.

But, nobody cares. Everybody wants a house now. The more they cost, the bigger the want. Alex, too.

He’s 39, single, a government worker, DB pension with an income of $100,000 and four hundred saved in liquid assets. So far, so good. “I’m very frugal,” he says. That allows him to save three thousand a month, since the rent on his current apartment is pretty cheap – $1,500 a month.

Of course he’s hot for a condo. In Delta (a relatively distant Van suburb) for $500,000. The plan is to use $100,000 from his investments and take on a $400,000 loan, keeping a liquid portfolio. “So with a mortgage my monthly payments would be $1,600 plus $400 strata. Of course can’t forget insurance and couple other bills of, I guess, $500. I would be paying about $1k more than my current rent and I’d still be contributing $2k a month to my portfolio.”

Why? “Benefits to buying would be twice as much space and closer to work. It would also get my parents and friends off my back. Feel free to unleash the blog dogs at me.”

If Alex were my kid, I’d mention the following.

He now has $400,000 in assets and zero debt. His rent is so affordable that he’s saving over 30% of gross pay while building a defined benefit pension. The guy is on his way to having at least $2 million (at an annual 6% return) by age 55. That means he can retire early with an annual DB payment of at least $50,000, plus the ability to pull another $120,000 from his portfolio, while renting a villa in Tuscany. Risks include potential market corrections and dying early from bliss.

If he buys, the mortgage payment, strata fees, property taxes and insurance, plus the lost opportunity cost of investing $100,000 will be $2,800 a month. Over five years that’s a premium-to-rent of more than $80,000. Add in the commission when selling ($25,000) and the condo needs to appreciate substantially for him to break even. Risks include rising mortgage rates and falling condo values, potential lack of liquidity and mobility, special assessments on the condo and maybe getting married and being talked into a $2 million house and hideously costly children.

But real estate is about feelings. Bah.

187 comments ↓

#1 erik mtl on 02.19.21 at 1:43 pm

For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

Is a home not just mainly a place to sleep, take care of basic necessities, enjoy company of others, chill out and perhaps raise children or companion animals. Whether you rent or own, what difference does it make to the aforementioned? I highly doubt any major increases in one’s well being comes from having your own property.

#2 Piano_Man87 on 02.19.21 at 1:48 pm

Alex, do not be a sucker and buy a condo.

What are you actually buying? Not land. You are buying a box in the sky, in a building that is depreciating over time. Your strata fees will climb north the longer you live there, and will eventually get to 50-75% of your current rent. What kind of deal is that? This is not an investment. It is trading your money for bragging rights – the epitome of ego.

Look around in Vancouver at older condo buildings and check their strata fees. You have no control over that, special assessments, etc. If your landlord jacks up your rent, you can walk.

And what about the condo insurance premium insanity that is starting to unfold, where sky-high premiums are being passed on to condo owners in places like Vancouver, which destroys their cash flow, and makes their “asset” undesirable on the market?

Why not find a rental that may be a bit more cash closer to work if that is your main driver, here?

At least buying a home with some dirt underneath it makes some sense.

#3 Ponzius Pilatus on 02.19.21 at 1:49 pm

Feelings!
You’re so right. And the parents are the worst.
I’m in the accounting field, and one of my former co-worker, a CA, now retired, is helping his daughter get into a house by lending her the sizable down payment.
She is pregnant, and he says she “needs” a big yard for the kid.
He was always very prudent with the company money, cool an rational.
But when it comes to his daughter: How much do you need, sweetheart?
If financial professionals fall for it, how could the average guy resist.
The RE racket is all powerful.

#4 mattbg on 02.19.21 at 1:50 pm

I’m an owner, and generally agree that there are some great things about renting, but it seems to me as if the choices of what and where you can rent, and the control you have over how long you can live there, how much you have to pay to stay there, and how quickly issues get resolved, is rather low.

Having said that, I have always bought with (relatively) large downpayments because I am concerned with the overall value of what I’m buying and not just the monthly payment. That is increasingly harder to do because of persistently low interest rates (20+ years of them), but buying something with 5% down in this temporarily-undersupplied GTA market when rates can only go up makes little sense.

#5 Joe Schmoe on 02.19.21 at 1:53 pm

#1

I used to move every 5 years at a maximum…get rid of crap…try something new…loved the ease of flexibility.

Now I have a family and a home…been in it 12 years…looking at a significant reno due to wear and tear.

Wish I could just rent the next one and leave this mess behind!

For the record: My house is worth the same now vs the trough of 2008-2009. There was no lucrative gain.

Financially, I am lucky that the sunken money in home costs doesn’t matter…but I sure see the benefits of renting outside of financial “rationalization”.

#6 BlogDog123 on 02.19.21 at 2:02 pm

People may have a false sense of ‘control’ when owning. But if you’re under the thumb of the strata{condo} board with all its rules and regulations, not so free are you??

If you rent and a new noisy or unreasonable person moves in next door, you have a last option to move out with lower costs vs moving from a condo. If your condo in the city has noisy neighbours, you can complain but something may not get done…

https://www.macleans.ca/society/life/condo-hell/

#7 Ponzius Pilatus on 02.19.21 at 2:05 pm

#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it.
BTW, there are people who think NASA is a giant waste of time and money.
We got lots of problems down here that need fixin.

#8 GAV on 02.19.21 at 2:09 pm

Yes let’s ignore the social benefits of owning your home. Especially for a family.

I don’t have to list them, but they are huge.

Something that you cant put a value on.

You can rent a house and put the additional cash flow into your kids’ RESP. Way bigger benefit. Think it through. – Garth

#9 Proud CERBian on 02.19.21 at 2:09 pm

My People Will Rule Canada Forever

Thank you, Justin.

#10 Lee on 02.19.21 at 2:12 pm

Toronto’s property taxes did not go up much.

They will. – Garth

#11 Faron on 02.19.21 at 2:17 pm

I can confirm that those forces you outline Garth were at play when we bought our house last Nov. I was the only voice of “reason” in trying to resist them. I was outnumbered. In the end it came down to having an offer from my partner’s dad to help with the down to get us to 20%. So, a chunk of the risk is his, not ours. We are lucky.

So far so good. We have kept spending in check (it’s very easy to get carried away with spending a grand here a grand there on modifications to a new place) and our mortgage + tax + maintenance is only a bit above what we paid before and well within our incomes. Eyeing interest rates though. Whoo. Another pop today… We should have locked in a 10 year…

The departure from this dip isn’t going to look anything like the departure from the GFC.

#12 WTF on 02.19.21 at 2:18 pm

“They’re paid to sell assets, not be your pal. They’ll seldom tell you that throwing all you’ve got into a house means no diversification, and therefore enhanced risk”.
—————————————————————-
I personally Would never ask a house sales person anything about investing, never. Diversification to their ilk would be buying a rental.

A gross generalization for sure but the entrance requirements are minimal and gadflies abound. As evidenced by the RE purchasers who reneged on the Ontario Deal Garth has highlighted here. Ironically, if they had completed the deal they likely could have sold for more, instead? bankruptcy.

Could easily jump on the RE bandwagon but why in the hell would I? The valuations are stupid and herd mentality from non critical thinking is astounding.

#13 45north on 02.19.21 at 2:19 pm

Official Languages Minister Mélanie Joly: “French is a minority language in this country, and the Government of Canada recognizes the need to intervene vigorously to counter and remedy its decline.”

We’ve reached the limit of intervention. I worked in the Federal Civil Service for 40 years. When I started, there was push to make the civil service bilingual – and it worked. Sort of. We were younger, a lot of English speaking civil servants took French courses. I took the courses and got up to a B level. I looked for ways to practice but the other people in class dropped out. French is hard. There’s a big vocabulary, there’s a lot of verbs. Gradually enthusiasm died down. Directors would start a meeting with “bonjour à tous et à toutes” then revert to English.

Mélanie Joly is minister of Official Languages. She’s got it easy. She’s not responsible for agriculture, for industry, for Revenue Canada, for Statistics Canada. She’s not in the Prime Minister’s Office.

So I have a few suggestions. Le bon travail commence chez vous. Make her the Minister of Agriculture. See how that works. What about the Prime Minister’s Office? All the people in the Prime Minister’s Office must have a C level – in French. All e-mails must be available in French.

Maybe, just maybe Mélanie Joly would be made Minister of Agriculture. She could do it only at great personal sacrifice. That’s not where she’s at. There is no way that the structure of the Prime Minister’s Office is going to change. They are responsible for the Prime Minister’s image. There is just no way!

So what can we do really? Keep on offering French classes to civil servants who want to take them. There’s another thing. My boss at the Canadian Soil Information Service went to great efforts to see that material on the web site was available in French. The Department of Official Languages could try to discern where small units like the Canadian Soil Information Service were making their information available in French and they could help them with a small boost to their budget – maybe $100,000. Official Languages should have the authority to relax Treasury Board’s common-look-and-feel rules. Removing them would reduce costs and make more information available.

https://nationalpost.com/news/politics/liberals-proposed-language-reforms-seek-equality-of-english-and-french-in-canada

#14 Chill on 02.19.21 at 2:21 pm

Why do you sound so exasperated Garth? You’re preaching to the choir. Most of the people who read your blog understand the advantages of living a balanced lifestyle and not putting all their financial eggs in one basket. People who write to you asking for advice about buying real estate are just noise. Ignore them. Maybe grab a scotch and a smile. Have a good weekend!

#15 ogdoad on 02.19.21 at 2:22 pm

Having a b/d portfolio paying rent and my LL fixing things that break will always sound like a win to me.

Alex sounds like he is in the midst of a ‘life hack’. Could be a millionaire by 50.

Alas, Social proof and cultural pressures will prevail – Realtor will get a commission, Alex his town home: which, HGTV hopes, has enough room for ‘entertaining’.

Og

#16 Freedom First on 02.19.21 at 2:24 pm

Wise words Garth. I love that I found this blog so many years ago. I was so thrilled to find someone, you, Garth, that was even smarter than me.

I gave up arguing with the braindead decades ago. I am nearing 70, and have been blessed with a Freedom First, balanced, diversified, liquid lifestyle.

I have been free from any hideous mistakes during my continuing joyous abundant adventures, allowing me a great life, while giving me the ability to help others, wherever I reside.

Freedom First

#17 Ponzius Pilatus on 02.19.21 at 2:24 pm

#157 BillyBob

Headed into the city centre today, gliding along in a Porsche-designed, Škoda-built tram. Bright sun flickering between the Baroque architecture, a Bach oboe concerto on the earbuds, music beautiful to the point of near-obscenity. Clear blue skies, coffee and book in hand, only day’s task to kill time until squeeze finishes work and we head out to the countryside for the weekend.
—————–
Good to see you keeping a stiff upper lip in locked down Prague.
Must be some Brit in you.
I like  the Trams in Europe. So smooth.
What book are you reading?
Kafka’s Metamorphosis would be appropriate, I think.

For blogdogs who are thinking of visiting Prague (which should be on everybody’s bucket list, together with Vienna and Budapest), below is a bulletin regarding the virus situation in Prague.

https://www.pragueexperience.com/information/coronavirus.asp

#18 TurnerNation on 02.19.21 at 2:25 pm

Speaking of Covid I think anyone engaging a business or service (such as a financial advisor) should insist on the following. I mean if I had tens of millions of dollars to hand over I’d insist on the following!
To Keep Us Safe and Stop the Spread of the Novel Corona Virus.

Requirements:
– Immunization status of all staffer members is posted on the web site.
– Along with written Covid Protocols certified semi-annually by a 3rd party Expert.
– Quarterly Covid Protocol training for all staff members provided by a 3rd party outside expert.
– Weekly Covid infection testing performed on all staff members by an outside 3rd Party.
– New Staff members receive a defined number of hours of Covid Training.
– That the firm supply all PPE and medical equipment to staff members, including gowns, gloves, booties, masks, respirators, shields, spray guns, thermometers, plastic sheeting, disinfectant, sanitizer.

#19 Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

#20 Linda on 02.19.21 at 2:32 pm

Feelings are powerful things. They almost always trump ‘common sense’. Psychologically speaking, the urge to own shelter is apparently hard wired. Add in some status symbol, envy & greed emotions & you’ve got plenty of fuel for the housing lust frenzy.

‘You can always rent accommodation’. That depends on whether you have the financial ability to do so. One of the fastest growing segments of the homeless shelter population are seniors whose incomes are insufficient to pay for local rent. The airy belief those seniors can just move to a less expensive locale doesn’t take into account the cost of doing so, or the fact that less expensive locales may not have a ready supply of low cost housing on offer. Not to mention the pesky problems of finding a family doctor, or whether the less expensive locale has public transportation or shops/services within easy walking/walker access to the senior in question.

#21 Where's My Money Going Greedeau? To lessen serious gun convictions on 02.19.21 at 2:35 pm

Garth says: First, why do we think as we do about the infallibility of houses? After all, financial assets (like equities) have a vastly better long-term performance. And they’re liquid. Cash flow. You can sell in a keystoke with no realtors, open houses or deplorables poking through your bathroom. No property tax. No condo fees, insurance, utilities, gutters to clean or furnaces to fix. No land transfer tax when buying. No giant commission to sell. Yes, you can live there. But renting is a way better deal. So why are we smitten?
+++++++++++++++++++++++++
Where else are the narcos and sketchies going to launder their money?
Do you accept money from a source that’s not known? Bet it has to be a bank draft…..
Banks + casinos will, they have friends in “high” places.
They will take $100k cash plopped over the counter any day, all day.
Don’t have to worry about guns staying in the illegal hands now that Trudeau is letting them all go free. But have a legal one and they’ll be busting down your door, cuz you just never know if you’re going to use it illegally.

#22 Dan in Nanaimo on 02.19.21 at 2:39 pm

Garth, you accurately captured sentiment in your February 14th A Different World essay, “Prices soar because people expect them to. They rise because buyers think there is no risk. When leaders don’t care, why should we?” Until fundamentals reassert themselves it’s a free for all. Pensions running large deficits while the FED and CB’s destroy any reasonable expectations of interest rate increases… social media stoking the campfire with nitroglycerin which intensifies the rabid FOMO/YOLO narrative as the inequality/wealth gaps widen… As things become more unstable, the probabilities of this mania evolving into a steady state are slim to none. So, in the meantime, buy a house (or two) or take out a loan, even if you can’t afford it… Just keep telling yourself it will end well, because in the end nobody cares

#23 Prince Polo on 02.19.21 at 2:40 pm

Renters AREN’T losers?!

Keep quiet o’er there, please!

I tell air’body that I’m a loser renter, just so that they don’t ask to borrow money from me! I got my own problems, like funding early retirement and vacations galore!

#24 Don Guillermo on 02.19.21 at 2:46 pm

#7 Ponzius Pilatus on 02.19.21 at 2:05 pm
#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it
***************************************
You like Trudeau. I don’t get it.

#25 Dominoes Lining Up on 02.19.21 at 2:47 pm

#10 – Lee

Toronto’s property taxes did not go up much.

They will. – Garth

_________________________

True, hardly any options for cities ahead, once the Prov and Feds tighten the taps. Cities normally cannot run deficits. Even this year’s budget this week in Toronto shows a real deficit of over $1.6 Billion without Fed/Prov handouts.

Toronto has long enjoyed the lowest property tax rates in Ontario. True but not well appreciated.

A $500,000 home in Toronto has property taxes of about $3000.

A $500,000 home in London, Windsor, Mississauga, Kingston and a bunch of other places will have taxes of $5000-$8000.

Toronto has been subsidized for years by commercial property taxpayers.

Many of whom have closed or moved due to Covid, with many more re-evaluating where they will be after Covid.

Realistically, Toronto property taxes will likely double. The politicians who accept the reality will likely be voted out, at least at first. After that, things could be a mess for years, with serious cuts to city development and services. That will certainly dampen down the value of living in the 6.

But we’ll probably see $250,000 bungalows again there in the next decade as a result.

#26 SoggyShorts on 02.19.21 at 2:47 pm

#8 GAV on 02.19.21 at 2:09 pm
Yes let’s ignore the social benefits of owning your home. Especially for a family.
I don’t have to list them, but they are huge.
Something that you cant put a value on.

*********************
Could you please list them though, because I genuinely don’t see them?

The only positive I see is stability so your kids can stay in the same schools and you don’t get evicted if your landlord sells.

IMO that is countered with the negative of your loss in mobility which has an unknown opportunity cost.
E.G.
I moved cities in 2012 on a bit of a risk for what turned out to be more than a 100% raise. I NEVER would have done that if it meant selling my house instead of just giving 1-month notice to my LL

#27 Dolce Vita on 02.19.21 at 2:52 pm

“…renting a villa in Tuscany.”

Sandra Oh and Diane Lane send their regards.

———————–

From the Provinces of Siena & Florence in Tuscany…

Montalcino.

On a budget, need only 100 sq m, €400/mo (Casale via Umberto I 69, Montalcino):
https://www.immobiliare.it/annunci/85327773/
[Montalcino where Brunello comes from, you know what costs you mucho $$$ for a good year you can pick up at your local Pam for about €25]

Chianti.

(Villa unifamiliare, ottimo stato, 383 sq m, Gaiole in Chianti – “Prezzo su richiesta” Italian for: if you have to ask you should really not look at this)
https://www.immobiliare.it/annunci/80698961/

A few km from Firenze. Quintessential.

If you live in DT Vancouver or are Garth, €7500/mo…(Villa unifamiliare piazza Buondelmonti, Impruneta, 300 sq m + lots of land, check the Flora…make your own olive oil and wine, comes with a pool and a James Ivory view)
https://www.immobiliare.it/annunci/80111375/

—————

Viva la Toscana.

#28 AuroraMum on 02.19.21 at 2:52 pm

Family income of 180k, 2 kids… finally out of the awful daycare years. Fortunate to both WFH right now. Lucky enough to have a full townhouse in Aurora at $1750 a month, which is well below market. This is our third rental house in 4 years in the area, so I worry that our latest landlord will put this up for sale and then we are stranded. We can’t, or rather refuse to buy back into this market and the rents in the area are madness. So while I agree renting is better right now, I am also scared that the rug could be pulled out from under us with just 2 months notice. Kids would need to change schools potentially, longer future commutes etc,…. that would just suck. We are considering a move to a smaller town in future if our jobs and salaries would align with that (hubby is in IT, lots of WFH potential)….. my dream of living in the GTA with no more then a 1 hour commute seems DOA.

#29 Alex on 02.19.21 at 2:54 pm

Look mom garth wrote about me!

Honestly I’m very lucky to be living in a great country with a great job that i don’t mind renting or owning. I’m not looking to make a profit on the condo just live in it, either way as long as I’m putting money away every month while owning or renting is a win to me.

I get strata is gonna go up along with other things but my income will also be going up (plus my investments) and i can even cut back on spending and still not feel a thing. I can easily live on 35k a year if i rent or 45k a year if i own.

Thanks again garth and blog dogs for your input.

#30 yorkville renter on 02.19.21 at 3:03 pm

it needs to be said…

I LOVE my grotesquely expensive children!!!

and of course it’s Emo to want to own… cant upgrade a rental!

#31 Captain Uppa on 02.19.21 at 3:26 pm

Why not both own a home and have a 60/40 portfolio? Naturally the home will eat the lion’s share, but having both is not uncommon.

Owning trumps renting, sorry. But it doesn’t mean you have to put all your money into it.

Balance can be done here.

#32 ElGatoNerodeYVR on 02.19.21 at 3:34 pm

I agree that stretching to buy a house is insane , but to preach “Rent Only, Never buy” is absurd. I would suggest that anyone thinking that way actually tries to rent for 5 years and you will see what you actually can get and how often you need to move. Yes, buying comes at a steep premium and it is more expensive than renting.. in the end though you get what you pay for.
As for our case study, at his age I don’t see the problem, he can comfortably buy into the condo ,5 years later go into townhouse then in another 7 years either upsize into a house or sell , invest the proceeds and rent.

And never be mobile, always tethered to debt. Sounds dreamy. – Garth

#33 TurnerNation on 02.19.21 at 3:38 pm

— I met Toronto’s mayor just before his election, in a restaurant owned by this fellow. The businessman lost his nightclub and restaurant empire due to said city’s policies, Who knew our society, culture, business would be attacked in such a manner. In every Former First World Country.

https://www.thestar.com/entertainment/opinion/2021/02/12/restaurant-king-charles-khabouth-deep-fries-justin-trudeau-over-canadas-slow-vaccine-rollout.html
“So how many cases were linked to his restaurants?
“Zero,” he says. “Not one single infection came from indoor dining.””


— Pets are next onto the global “green” agenda hit list.

https://www.cbc.ca/news/technology/what-on-earth-pet-food-carbon-footprint-1.5918813
Insect-based dog food aims to cut your pet’s carbon pawprint

..
— Real easy folks. This is the same rollout in every Former First World Country. Timelines are key.

“@CFIB
As of Mar. 9, hair salons in Toronto will have been closed for 198 days, gyms for 270 days and indoor dining for 279 days.”

“Toronto pushes to delay COVID reopening until March 9”

“Ireland: Nine more weeks of severe lockdown confirmed. (irishmirror.ie)’

New COVID-19 strain discovered in Finland, researchers claim (news.yahoo.com)

….
— This virus is so deadly they will infect it into people!!!

https://www.bloomberg.com/news/articles/2021-02-18/why-infect-people-deliberately-with-the-coronavirus-quicktake
Why Deliberately Infect People With the Coronavirus?
By Jason Gale
February 18, 2021, 12:17 AM EST Updated on February 18, 2021, 5:15 PM
The U.K. plans to deliberately infect dozens of healthy young adult volunteers in the coming weeks with SARS-CoV-2 to learn more about how the virus affects people and the effectiveness of experimental vaccines. EST

—- But you are free to leave at any time. Control over our Breeding (#stayhome), Feeding (eat bugs) and Movements/Travel is key.

“The Globe’s Eric Atkins writes that the Calgary airline said it will temporarily halt operations between March 19 and June 24 in four domestic cities: St. John’s, London, Ont., Lloydminster and Medicine Hat. Additionally, flights will be suspended between St. John’s and Halifax; London and Toronto; :

#34 The Woosh on 02.19.21 at 3:40 pm

They’ll seldom tell you that throwing all you’ve got into a house means no diversification, and therefore enhanced risk. The costs of ownership, or closing fees, are almost never discussed when buying. Nor will the typical realtor remind you that 1.5% mortgages are doomed or that cities decimated by the virus will be jacking taxes (property, and transfer) or creating new ones (vacancy).

—————————————

Why should they? Last I heard that’s not their job. Plus, I’ve never seen it mentioned in any of the commercials they put out that they offer that kind of service. Realtors are not Advisors. Plenty of Advisors who don’t do it either. And those Advisors are licensed to do it. Plenty of horror stories there too.

#35 Stoner on 02.19.21 at 3:42 pm

Mostly agree that Canadians are too obsessed with owning real estate and becoming a one trick pony.
Disagree on a couple of areas. Cash flow also means a penny saved is a penny earned. Rents form a significant portion of cash outflow which is best avoided if you own a debt free home.
The second is about 6% return is not exactly risk free in today’s world.
The third is that with all the currency printing, real estate is a better risk free inflation hedge

#36 Dolce Vita on 02.19.21 at 3:43 pm

#19 Ponzius Pilatus

They also make this:

https://img2.stcrm.it/images/21449604/1000×1000/frecciarossa-1000-etr-400-1.jpg

Frecciarossa 1000*.

What a sweet ride at 360 km/h (design 400 km/h). I board it in Venezia enroute to Roma (pre-pandemic). Around Bologna and a ways after that, they hit 360 km/h (Smartphone GPS speed app). Quiet. Smooth.

Makes TGV feel like a steam locomotive (sorry France, but true).

https://en.wikipedia.org/wiki/Frecciarossa_1000

—————-

Vive Québec and Canadian ingenuity.

*Italia’s need for speed and Ferrari looks…grazie Canada.

#37 Agata Konopka on 02.19.21 at 3:43 pm

Tell Alex I am single 32 live in Surrey and will fight his family for him on the condo in Delta.

#38 Is it possible ... on 02.19.21 at 3:45 pm

to get a condo in Delta for 500 large? Can’t be much to look at …
If serious look CLOSELY at the council meeting minutes. Learn to read between the lines as that is where the meat is. Try and talk to someone who actually lives there. Best if you can find someone who used to live there. And best to volunteer on the council if you buy to see the real picture. Bin der … dodged a bullet and made out well. Can happen.

#39 Darren on 02.19.21 at 3:46 pm

Owning is a false sense of security. See what happens when you stop paying your taxes or mortgage. You own nothing everything is borrowed.

#40 Mewling Shrew on 02.19.21 at 3:48 pm

The biggest problem with renting, in my view, is that Canada still allows forced evictions. (Despite housing being a “right.”) As a renter, your only real security is renting from a big corporation, in which case your only options are tiny. That might not matter to you, Garth, since you seem to enjoy frequent moves around the country. But to those of us hoping to stay put and raise a family, it’s a big deal.

#41 To the point. on 02.19.21 at 3:49 pm

Yes, Garth, I have read your financial rationale for renting VS owning but leaving financials aside, when I look at condos, it seems impossible to find the same design and build quality in rentals VS sales. Many owners put the minimum into a property that they know will suffer heedless wear and tear. Even the developers of brand new rental buildings seem to invest the minimum in construction , amenities, appliances, etc.

#42 Millennial 1%er on 02.19.21 at 3:49 pm

I think everyone is buying houses because they need one, not because they think its going to make them rich.

#43 Classical Liberal Millennial on 02.19.21 at 3:50 pm

It’s one thing if you genuinely need the space and can afford the place, but don’t let friends and family pressure you. Show them that sweet portfolio!

#44 ElGatoNerodeYVR on 02.19.21 at 3:50 pm

And never be mobile, always tethered to debt. Sounds dreamy. – Garth
======
In the GVA mobility is not really the problem it is in the GTA. I’ve moved around the region a few times and commuted all over and it is really not that big of a deal.
As far as interprovincial mobility only an extremely small percentage ever leave the GVA for work ,the ones that leave usually sell and go to the Island or Interior.
Mobility is an aspirational goal that ends pretty quick once one gets hitched and or hits mid 30’s .
Again, I am not advocating insane buying, I am saying that you could/should be 60% investments, 40% housing.

#45 Captain Uppa on 02.19.21 at 3:59 pm

Regarding the ongoing message of urban centres being reborn post covid and blinded, mindless zombies regretting crossing into the loser-ness of suburbia, I say this … people don’t want to live in big urban centres. Get over it. Stop dismissing the overwhelming demand of suburbia and small towns as idiocy.

#46 The Woosh on 02.19.21 at 4:01 pm

#39 Darren on 02.19.21 at 3:46 pm
Owning is a false sense of security. See what happens when you stop paying your taxes or mortgage. You own nothing everything is borrowed.

——————————————

That makes no sense. If you rent and don’t pay your rent there are consequences. Same goes if you own and don’t pay your mortgage and property taxes.

#47 Billy Buoy on 02.19.21 at 4:06 pm

Keep buying til you can’t. Why?

If when rates get out of control, everyone is so conditioned for gov’t worldwide just to print money and keep people fat, dumb and lazy because what is the alternative?

Revolt, carnage, etc and the 1% do not want that.

Instead the crash will allow the 1% with cash on hand to sweep in and buy anything and everything they want to for pennies on the dollar.

It’s just a matter of time.

Can ANYONE provide ANY OTHER Long Term solutions?

Mmmm, NO? Because a majority of Politicians are bought and only care about their next election or retirement fund.

NO ONE HAS THE CAJONES to actually make the hard decisions that should have been made 30 years ago and I don’t see any of the current Man Boys stepping up.

So until then, PARTY ON EVERYONE! NOTHING IS GOING TO CHANGE…NOTHING.

#48 PetertheSeparatistfromCalgary on 02.19.21 at 4:08 pm

Housing prices are soaring despite net migration to Canada going negative in in Q3 of 2020!

“Canada’s population growth rate stood still in the third quarter of 2020, between July 1 and September 30, 2020. The country only saw a net population increase of 2,767 people. ”

“The slow growth comes mainly from negative net international migration. This means that more people left Canada than those who moved to Canada.”

https://www.cicnews.com/2021/01/canadas-population-growth-slows-to-a-standstill-following-reduced-immigration-in-2020-0116684.html#gs.tfozn8

#49 cramar on 02.19.21 at 4:11 pm

Hey Alex, you say one of the reasons to buy is you will be closer to work. So rent closer to work. One problem solved.

As far as friends and parents, tell them you have a plan to retire early with a fortune, and to check back with you in a couple of decades to see if your plan was better than theirs.

#50 JMann on 02.19.21 at 4:14 pm

#1 For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

I enjoy home ownership. Like really, actually, enjoy home ownership. For the moment, I am “renting” my house from the bank but the interest payments, property taxes, maintenance, and utilities are still way less than what it would cost to rent the same place.

My wife and I rented when we first got married and we were able to save up a ton while renting, so nothing against renting. And with current house prices, not sure what we would do if we had to do it again.

Garth – I have never understood why you don’t included principal repayment in your simplified comparisons of cost of monthly rent versus monthly cost of ownership. Perhaps you’ve explained why in the past and I missed it. At the end of 20/25 years, you have a paid-off home so why is that omitted from your calculations?

#51 Dogman01 on 02.19.21 at 4:21 pm

#188 NEVER GIVE UP on 02.19.21 at 1:30 pm
#4 Dogman01 on 02.18.21 at 12:47 pm
Maybe there is a bigger picture going on here?
Could it be possible that the Free Trade movement has prevented war?
———————————————-

Yes – very valid , A modern major power war would destroy civilization, so perhaps all other considerations need to be sidelined for that.
Free Trade is listed as the top cost\ benefit initiatives Humans can do ; https://www.copenhagenconsensus.com/sites/default/files/post2015brochure_m.pdf
In aggregate increasing the world’s standard of living at the expense of the “West’s Standard” of living would benefit global humanity.
Also likely the world’s carrying capacity could not sustain all 7-10 Billion living the 1980’s West Standard of living.

The War avoidance as a greater good angle does have merit.

IMO : A loose consensus based on greed\power is more likely then a consensus on benevolence to Humanity . Free Trade enriched and further entrenched the established elite at the expense of their society, quite parasitic. Also benefiting a mass of humanity whom were living in abject poverty, but that was was just an unintended side effect.

From 1950 – 1980’s the Western World experienced a period of widespread mass prosperity coupled with Individual Human Freedom, liberty and dignity.
That is the aberration from the normal state of Human societies, IMO the priority of Canadian leaders should have been to preserve that.

I conclude the management of the Farm is for the benefit of the Farmers not the livestock, despite the assurances of the farmers.

Invest accordingly.

#52 Leichendiener on 02.19.21 at 4:25 pm

#10 The meter is running. Lockdowns are very expensive; that’s why poorer nations don’t do them. Garth is correct, and not only will property taxes rise but services will be reduced. I hope that the powers in charge like the taste of other people’s saliva because when restaurants do finally open, their server is going to flag their order to the kitchen.

#53 S.Bby on 02.19.21 at 4:26 pm

Owned a house in North Delta and that was bad enough. I sure wouldn’t buy a condo there.

#54 Alex, NOOOOOOOO! on 02.19.21 at 4:27 pm

Bought condon’t as rental market was thin.
Awaiting 3rd special assesment, lots of renters (who give no crap and make strange neighbors), clueless condo board, inept property management, HVAC, Elevators, security systems, fire alarms always need fixes. etc. etc.etc.

#55 Richard L on 02.19.21 at 4:30 pm

Geddy Lee for Gov General –

There’s no bread let them eat cake
There’s no end to what they’ll take
Flaunt the fruits of noble birth
Wash the salt into the earth

(N. Peart RIP)

#56 Moonshine on 02.19.21 at 4:35 pm

Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

For me that’s a racist comment…Quebec bashing is too
frequent on this blog

#57 Jem on 02.19.21 at 4:37 pm

If only more parents guided their children with a larger view on real estate and housing.
If I recall correctly, it was trendy in the 80s for folks (parents) to get real estate advice at seminars, which often encouraged dropping funds into real estate.
I am guessing parents then put money into real estate, rather than RESPs or other funds for kids futures.
Starting out a career with debt takes years to recover from.
Sometimes getting a mortgage can take you back to that starting line.

#58 Pete on 02.19.21 at 4:38 pm

I mentioned yesterday that I rent for $1800/mth and no need to buy if you don’t need to. What I didn’t mention is that this time last year I was a homeowner paying $3000/mth in mortgage and expenses for a house about the same as what I’m now renting. The difference is that 1. My net from the sale of my house is invested and earning approx $2200/mth. 2. I’m now in a newly renovated 3bdrm house. 3. I’m in a fantastic neighbourhood that I can’t afford to buy into. 4. I’m saving $3000/ mth. No expenses. No worries. Just planning my next post covid vacation, etc. Landlords, keep buying nice houses for me to rent thank you.

#59 The Variant on 02.19.21 at 4:38 pm

Garth, The variant is getting a lot of press lately. Is this a risk to the markets like a 2020 style correction?

That would be a mother of an opportunity. – Garth

#60 S.Bby on 02.19.21 at 4:39 pm

For a real estate agent the definition of being diversified is owning more than one property.

#61 Rainman on 02.19.21 at 4:42 pm

Even Ryan just bought a house, was he not listening? There is something different owning your own home that you just can’t put a value on.

He can afford it without risking his family’s future. Trust me. – Garth

#62 Drinking on 02.19.21 at 4:42 pm

Looks like the bird killing Felix realized how bad his/her post was yesterday and decided to make up for it with doggie kisses, by the looks of it spent a few dollars. Good doggie, bad Felix! :)
————————————
Hit the nail on the head with todays’ post Garth, the media/via agents, banks, are a large part to blame for all this. If one can live with all the advertisement alone on T.V. never mind other mediums that encourages on how great life is to place oneself a million dollars in debt then whose fault is it really? The naïve or the sellers??

#63 The West on 02.19.21 at 4:44 pm

The wages of financial capitalism. You are correct to point out that “inflation” cannot sustain the house prices because the average Canadians makes less then $55,000/yr. It will not be sustained. There is a huge debt crisis coming to Canada. You could say it was short term thinking on the part of our “government” but you and I both know the Laurentian Elite want this to happen and we both know why.

:)

https://medium.com/@zzoliche/canadas-laurentian-elite-and-the-politics-of-demography-6c95af1ccc6f

#64 The Woosh on 02.19.21 at 4:48 pm

#50 JMann on 02.19.21 at 4:14 pm
#1 For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

I enjoy home ownership. Like really, actually, enjoy home ownership. For the moment, I am “renting” my house from the bank but the interest payments, property taxes, maintenance, and utilities are still way less than what it would cost to rent the same place.

My wife and I rented when we first got married and we were able to save up a ton while renting, so nothing against renting. And with current house prices, not sure what we would do if we had to do it again.

Garth – I have never understood why you don’t included principal repayment in your simplified comparisons of cost of monthly rent versus monthly cost of ownership. Perhaps you’ve explained why in the past and I missed it. At the end of 20/25 years, you have a paid-off home so why is that omitted from your calculations?

————————————

The simple answer is that we all have biases. That includes our exalted host. All part of the human condition.

#65 Adam on 02.19.21 at 4:48 pm

Garth,

Interesting blog post. I’ve heard you mention several times before that the “liquidity of assets is an advantage over the illiquidity of a home”. And while I agree this seems like common sense, have you ever considered it may actually be the other way around?

Think about it – we are living in Generation ADHD. People have apps on their phones and check stock prices 50 times a day. The folks on reddit call it “Diamond Hands”, e.g., hands that are so rock solid they won’t hit the “sell” button and panic sell. But of course people do. And they end up in all cash. And then they miss out!

With real estate, there’s no easy way to sell and so “buy and hold” is easier for Generation ADHD. They can sit back and enjoy their gains. And if property prices drop, they can tell themselves “It’s okay, I didn’t buy this for an investment, I bought it to live in”. Of course, we know that isn’t true but it helps them sleep at night. Well, that… and Ambien.

Adam

#66 WDL on 02.19.21 at 4:57 pm

“hideously costly children.” Shame on you, Garth. Children are a blessing!

#67 Rainman on 02.19.21 at 4:59 pm

Even Ryan just bought a house, was he not listening? There is something different owning your own home that you just can’t put a value on.

He can afford it without risking his family’s future. Trust me. – Garth

LOL – fair enough…

#68 Don Guillermo on 02.19.21 at 5:01 pm

#56 Moonshine on 02.19.21 at 4:35 pm
Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

For me that’s a racist comment…Quebec bashing is too
frequent on this blog
*************************************
Hate to break it to you but Quebec’s not a race.

#69 Sail Away on 02.19.21 at 5:07 pm

#1 erik mtl on 02.19.21 at 1:43 pm

For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

Is a home not just mainly a place to sleep, take care of basic necessities, enjoy company of others, chill out and perhaps raise children or companion animals. Whether you rent or own, what difference does it make to the aforementioned? I highly doubt any major increases in one’s well being comes from having your own property.

————

Yes. My wife and I (and dogs) greatly enjoy home ownership. We’ve taken lots of time and energy to make it exactly the way we want, and we very much enjoy relaxing at home, using it as a gathering/reunion place, hosting guests from away…

That doesn’t apply to home ownership as a whole, though. The Vancouver house we sold last year was in a purportedly high-end neighbourhood and was worth much more than ours… but we would never, ever voluntarily choose to live there jammed like sardines.

Personally…

give me land, lots of land, and the starry skies above /
don’t fence me in

And I want to own it.

#70 Sail Away on 02.19.21 at 5:12 pm

#66 WDL on 02.19.21 at 4:57 pm

“hideously costly children.” Shame on you, Garth. Children are a blessing!

———–

Hideously costly blessing

How’s that?

#71 Shirl Clarts on 02.19.21 at 5:13 pm

#68 Don Guillermo on 02.19.21 at 5:01 pm
#56 Moonshine on 02.19.21 at 4:35 pm
Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

For me that’s a racist comment…Quebec bashing is too
frequent on this blog
*************************************
Hate to break it to you but Quebec’s not a race.

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

True or False. Cars made in Mexico are inferior to cars made in Japan.

#72 bobo on 02.19.21 at 5:15 pm

Always Rent condos
But buy a house – odds are you will be ahead
The real cost of the mortgage is the interest not the payment and at 1.5 % its cheaper than rent.

#73 Ponzius Pilatus on 02.19.21 at 5:19 pm

Let’s finish the pipelines to the States.
And then sell them water.
In a few years oil will be cheaper than water.
Spills? No problem.
And the budget will be balanced.
Win. Win.

#74 Lieutenant Commander Data on 02.19.21 at 5:21 pm

I am fascinated how exchanging perceived leaseholds rights to a piece of land in Canada is considered as ownership of land, when in reality The Queen actually owns all of Canadian land. It would appear politicians are Primary Real Estate Agents in Canada. This would certainly explain the direction of policies.

Further, I am fascinated by how this trading of leasehold rights is currently the single largest contributing factor to the Canadian economy. This would clearly indicate that the economy has questionable productivity at best.

My positronic brain at this time has calculated a 50% probability the pandemic is a cover story to allow unproductive western economies to spend limitless amounts to prop up the economies from collapse under their own weight and debt.

It has also calculated a 100% chance that Karl Marx called it right regarding capitalism. As usual, humans appear to be in denial.

I will now re-install my feelings chip to evaluate how I feel about all of this.

#75 Garth's Son Drake on 02.19.21 at 5:35 pm

Ask a dog about rental barriers.

95% say no to dogs.

But they still want their rent money.

I have rented and owned, even when stable and living in the same place for a long time.

You save more money renting, but the cost of home ownership is a premium that I am willing to pay. Renting sucks.

With that being said, I would never buy anything other than a detached house.

Living in a condo or townhouse sucks just as much as renting. So much movement of new people in and out you want to be renting so that you can switch it up for when a nasty pot smoker or some other nuisance person moves in beside you and shares the wall. No thanks.

#76 Money Printer go Brrrrr for Upcoming Election on 02.19.21 at 5:39 pm

Prime Minister Justin Trudeau proposed Friday that the Canada Recovery Benefit and Canada Recovery Caregiving Benefit should be extended for 12 more weeks, pushing the maximum that Canadians can claim up to 38 weeks in total.

Trudeau added that employment insurance availability should be expanded to a total of 50 weeks, up from 26 under the existing framework.

The government also proposed expanding the Canada Recovery Sickness Benefit to four weeks, up from two weeks.

#77 Howard on 02.19.21 at 5:39 pm

Just put it on the national credit card!

https://www.cbc.ca/news/politics/canada-recovery-benefits-extension-1.5920397

Trudeau told reporters this afternoon that the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB) and Employment Insurance (EI) will all see extensions in the number of weeks eligible recipients can receive them.

#78 Linda on 02.19.21 at 5:43 pm

The rent vs. own debate. What I’d like to know is, how many of those who rent have been funding an RRSP/TFSA/investment portfolio? If they haven’t been doing any of that, why not? Because seems to me that the one undeniable virtue of purchasing vs. renting is that you are effectively being forced to ‘save’, or at least make payments. At least, you had to before Covid & presumably will ‘have’ to resume paying the mortgage at some point. I don’t disagree that putting all ones eggs in one basket isn’t the best strategy, but given that most folks don’t seem able to set money aside if they have the choice it is better than nothing.

#79 Reximus on 02.19.21 at 5:46 pm

re maintenance costs: I bought my ‘slanty semi’ in east toronto 22 years ago, it was fully updated then so that was in the purchase price, but honestly, the cost of upkeep has been pretty negligible, the roof had to be replaced a couple of years ago, and that was only 5k (shop around for roofers, they can be pretty reasonable). Now a large window unit needs to be replaced and that will be 1400. Besides that there has been little in the way of big ticket expenditures. It’s not a big house but it has been fine for us. And now it’s worth a crazy amount.

I’d say the car repairs we’ve done over the years are way more than house repairs tbh, car repair costs in Toronto are nuts.

#80 Trevor Wilkie on 02.19.21 at 5:49 pm

Obsessed about real estate? Real estate is about NOT being homeless Garth. Basic survival of the individual and the species. Its about feelings? Blah? Omg. Ever had to wonder if you might lose your house Garth? Not likely. I never saw who you actually are until now. Perhaps a bit of a socio path? Its ok Garth that does not mean you’re a serial killer it just means you don’t have the capacity for empathy.

#81 Brian Ripley on 02.19.21 at 6:19 pm

My Housing Starts charts are up with current data:
http://www.chpc.biz/housing-starts.html

Last month I reported that a potential trend change was at hand in starts vs census growth nationally (since the mid 1970s starts have been trailing census). This month’s data quashed that hopeful notion.

Nationally and in Quebec, Ontario, Alberta & BC
~ Y/Y changes are down single digits
~ 10yr changes are up double digits in ON & BC
~ Since their peaks, all provinces covered are down double digits

#82 IHCTD9 on 02.19.21 at 6:23 pm

#1 erik mtl on 02.19.21 at 1:43 pm
For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”
——-

I like it a lot, but I paid 1.36x income, and current costs to live here is half of local rent for a 2 bedder. I can hoon it up anytime here, and tons of room for toys.

That would change though, if I had to pay 6-10x income to buy it…

#83 Nonplused on 02.19.21 at 6:27 pm

Alex is doing pretty good for 39. Probably because he is single.

With a government job he probably doesn’t need mobility but he also doesn’t need to own. My contention is that single people are in a unique position to rent and stay mobile. Plus, the fact is if you do get married probably you will have to sell what you have and buy something else.

At 39, the kid train has probably left the station. Even though it is still technically possible, especially if he gets a young wife, who wants teenagers in the house when you are 60?

I personally don’t like the idea of owning a condo because the condo association has too much control and are often a bunch of Karens. I don’t even like home owner’s associations. It’s not like the city or county doesn’t have enough rules already.

But he did argue he could afford it, would have more space, and would be closer to work. Those are important lifestyle considerations.

So there is no clear answer on this one.

#84 KLNR on 02.19.21 at 6:28 pm

@#45 Captain Uppa on 02.19.21 at 3:59 pm
Regarding the ongoing message of urban centres being reborn post covid and blinded, mindless zombies regretting crossing into the loser-ness of suburbia, I say this … people don’t want to live in big urban centres. Get over it. Stop dismissing the overwhelming demand of suburbia and small towns as idiocy.

folks absolutely still want to live in urban centres, just can’t afford it. Suburbia is the purgatory of this planet.

#85 A prefrontal lobotomy might be just the thing on 02.19.21 at 6:28 pm

You mentioned pulling $120k annually out of a $2M portfolio. Isn’t 4% the recommended withdrawal rate? I’m planning on retiring with a $2M portfolio shortly and figured I’d have to get by on $80k. I have absolutely nothing backing me up so figured I need to be conservative.

#86 Drinking on 02.19.21 at 6:31 pm

#74 Lieutenant Commander Data

Bingo, Canadians do not own the land only an expensive lease. At anytime, governments can exercise the rights to annexation for whatever reason they feel is appropriate. At least the Americans got it right!

#87 Reximus on 02.19.21 at 6:33 pm

the BEST thing about the rise in costs of homes in Canada’s big $$ cities is it’s finally making Canadians to look at alternate places to live to find value….Atlantic Canada as an example, is a GREAT place to live. It’s about time.

#88 IHCTD9 on 02.19.21 at 6:33 pm

#78 Linda on 02.19.21 at 5:43 pm
The rent vs. own debate. What I’d like to know is, how many of those who rent have been funding an RRSP/TFSA/investment portfolio?
—— —

Those that do probably had the means to buy an sfd.

#89 IHCTD9 on 02.19.21 at 6:39 pm

#73 Ponzius Pilatus on 02.19.21 at 5:19 pm

And the budget will be balanced.

— – –

I’ve heard that one before…

#90 Karl hungus on 02.19.21 at 6:41 pm

You forgot about mortgage pay down. Its significant, and he get that money back when he sells.

#91 Hello from Hal on 02.19.21 at 6:41 pm

It’s easier to live in a house than a equity.

#92 cuke and tomato picker on 02.19.21 at 6:43 pm

My grandfather said that renting is like buying “A DEAD HORSE.” We have owned 4 houses 3 were orchards from which we made a good deal of money. We also owned a property on a lake in Washington State as well as a rental property in the Vancouver area (a murb). We made a good profit on every property. Our 4th house which we live in now is the smallest and is not on acreage but has increased in value 54.72 percent or probably more since we bought it 15 years ago in Central Saanich B.C. The charmed life children grandson
etc. so far so good .

#93 Penny Henny on 02.19.21 at 6:48 pm

#25 Dominoes Lining Up on 02.19.21 at 2:47 pm
A $500,000 home in Toronto has property taxes of about $3000.

A $500,000 home in London, Windsor, Mississauga, Kingston and a bunch of other places will have taxes of $5000-$8000.
/////////////////

Dominoes I like you so please don’t take this as a slag but a $500,000 ACV home in Toronto would be taxed at about $2000-$2200 per year, maybe even less.
Here in Welland a $500,000 ACV home would be taxed at about $2800-3000/ year.
Admittedly still a difference but in reality what does ACV mean at all if the tax base covers all the expenditures, which is all that matters.
BTW assessment value means nothing, my house is assessed at $218,000 and I could sell it for $600,000 tomorrow.

#94 Calgary Rip Off on 02.19.21 at 6:49 pm

@ Erik #1.

I own a mortgage. The only thing anyone really owns is time. The reality is with devices and possessions these are tools to navigate emotional variables. Housing always has positives and negatives. If you rent there is less hassles in fixing things. And owning a mortgage doesn’t lessen accountability to someone at all times. For example, bylaws prevent letting the lawn go. I was threatened last summer with a $400 fine because some of the dandelions exceeded the 6″ limit. The reality is that freedom is an illusion. If I had my way there would be a 12 foot wall around my property on all sides and the city would be responsible for shoveling the snow on the sidewalk as that isn’t my property. But somehow Im responsible.

The main thing I look for in a property is freedom from other people’s energies. The Chinese had it correct in building the Great Wall of China to keep savages out. I feel the same way about my neighbours all around me. My wife doesn’t like where we live either. The fact that the place I live in is valued at $455 K doesn’t make it so. It was $198K originally. And now Im forced to live with people surrounding me that paid that while I paid $420K? Yeh no thanks. As long as I keep my health and can do what I need to in the place, I have zero emotional connection to a non living entity. I care only about my wife, daughter and pets. And I don’t want other peoples energies invading my properties because they live too close to me.

#95 WTF on 02.19.21 at 6:53 pm

#80 Whoa

Maybe UP the medications. I’m sure that rambling tirade made sense to you.

Empathy? The guy spends considerable time each and every day educating those who are interested on how to manage your personal finances for a secure future.

And you? Personal unsubstantiated attacks. Nice.

#96 Islandgirl on 02.19.21 at 7:03 pm

Do I love my home? Yes. Do I love being a homeowner? No. House is worth more now than it was when we bought and right now it has no siding and it will it be worth more in 5-10 years but it’s required a bit of work and caused a bit of stress. We bought at the perfect time and got a smoking deal. Will I ever sell and buy again? Hell no. I am living here until I can’t, then I’ll sell and rent what I need or make the kids take care of us. Right now we’re making some updates so the grandparents can move in because in this time of COVID, we would rather have family close.

#97 KLNR on 02.19.21 at 7:08 pm

@#1 erik mtl on 02.19.21 at 1:43 pm
For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

Is a home not just mainly a place to sleep, take care of basic necessities, enjoy company of others, chill out and perhaps raise children or companion animals. Whether you rent or own, what difference does it make to the aforementioned? I highly doubt any major increases in one’s well being comes from having your own property.

I love owning properties. for me and my family the benefits are many. Having said that, not a chance I would buy now if I were a first time buyer. i imagine it would suck bigly to be house poor.

#98 Drinking on 02.19.21 at 7:09 pm

There seems to be some misconceptions on the comments. It has nothing to do with home ownership against renters. As Garth mentioned many, many, many times. If one can afford one and not severely or not affect there future then go for it, there is no issue on this.

What he is warning about are people who are so obsessed by ownership, who really cannot afford it and will do anything to buy one expecting a rosy life!

The smart one’s started with a starter home, if they had skills renovated it themselves and then sold and moved upwards. Nowadays so many expect the best only leading to failure, financially and especially relationships, seen it so many times.

#99 Regjeg on 02.19.21 at 7:14 pm

Buy what and when you can afford to. Enjoy the rewards and accept the risks of home ownership.

#100 yvr_lurker on 02.19.21 at 7:16 pm

Your argument for this fellow not buying his own place essentially means that nobody should be buying anything. I had the impression that you were of the mindset that if you can afford it then go ahead:

1. He has 400K and will only use up 100K for the downpayment, leaving him with a stash to still invest, and he can easily make the monthly.

2. His rent now is rather cheap, and you have essentially extrapolated this “cheap rent” into the long distant future. We all know that in YVR what was “cheap rent” around 2003 in the West End of YVR for a 1-bedroom (i.e. around 1200.00 per month) exploded to well over 2000 per month a decade later.

In my view he can easily afford this and, as compared to some lunatics, this is not a big risk. I don’t consider it a long-term goal to have saved a bundle, but due to extreme rents, am having to living out the rest of my life renting in some little village in the south of Italy where it is dirt cheap but I know nobody and can’t speak Italian.

There is a trade-off between taking risks in real estate (you need to have some $$$ left aside) and actually getting into the market so that you can have a permanent base to cultivate a community of friends etc… and not be worried about the landlord renovicting you every two years….

#101 Stone on 02.19.21 at 7:21 pm

#90 Karl hungus on 02.19.21 at 6:41 pm
You forgot about mortgage pay down. Its significant, and he get that money back when he sells.

———

After they pay the realtor fee, along with tax applied on it, of course. Also, that downpayment sits there all the while generating zero cashflow.

I wonder in 2-3 years if home equity will grow or if it will stagnate or actually shrivel. We’ll see. Bond rates going uppa! Uppa! Uppa! Yes. We’ll see.

#102 Todd on 02.19.21 at 7:21 pm

Part of it is socially acceptable bragging. For some reason pics of your high end home are acceptable in social circles. But telling people that your investment account hit 7 figures is uncouth and unseemly.

#103 Stone on 02.19.21 at 7:27 pm

#42 Millennial 1%er on 02.19.21 at 3:49 pm
I think everyone is buying houses because they need one, not because they think its going to make them rich.

———

That was the best joke ever. I laughed. I cried. Then, I laughed some more.

#104 Trudi Woods on 02.19.21 at 7:27 pm

My parents inherited all their property…houses built in in Sir John A.’s time…when I grew up there was no safety net and during their youth …the 1930 depression WW2 it was not that much different then what we see now in parents supporting their children in education…housing…we raised our children to be frugal (me) and buy low and improve the place bought with hard work…so far its work …and location location location…

#105 The Woosh on 02.19.21 at 7:29 pm

#102 Todd on 02.19.21 at 7:21 pm
Part of it is socially acceptable bragging. For some reason pics of your high end home are acceptable in social circles. But telling people that your investment account hit 7 figures is uncouth and unseemly.

————————————

Every Joe Nobody has 7 figures. No big deal. 8 figures on the other hand…

#106 Nonplused on 02.19.21 at 7:30 pm

#3 Ponzius Pilatus on 02.19.21 at 1:49 pm
Feelings!
You’re so right. And the parents are the worst.
I’m in the accounting field, and one of my former co-worker, a CA, now retired, is helping his daughter get into a house by lending her the sizable down payment.
She is pregnant, and he says she “needs” a big yard for the kid.
He was always very prudent with the company money, cool an rational.
But when it comes to his daughter: How much do you need, sweetheart?
If financial professionals fall for it, how could the average guy resist.
The RE racket is all powerful.

————————————-

If your CA friend made senior partner he has cash to burn. I have a good friend who is a senior partner and my wife works at an accounting/consulting firm, so I have been to her boss’s houses. The cashflow is outstanding, although they cannot use their private corporations (they all have one) to shield themselves from taxes. It is no wonder they all swap their wives out for younger versions at 50 and spend $120,000 on kitchen renovations. (To be fair, the Sub Zero fridge is $40,000 right there.)

Given what CA’s get paid and thus taxed just to make sure the governments get their taxes, there should be no deficit.

At the risk of pissing off Penny Henny by going to long, the scheme works something like this: A senior partner can easily bag $500,000 a year to oversee government mandated audits, and pay $250,000 in taxes. Of course he doesn’t actually do most of the work, that is left to the underlings, but they pay taxes too. But who actually pays the taxes? Well, it is the company that is mandated to get an audit by the CRA. If people were honest (which by and large they are not) there would not be any need for audits, so this is a bunch of tax money and rich people created just to keep people honest and make sure everything reported is accurate. I am glad my friend has done so well, but then do to my personality type sometimes I am saddened by the fact the profession is required at all. But then I suppose we need police too, or at least a sheriff, or all hell breaks loose. Human nature is more like monkey nature than we like to admit. Theft is only deterred by punishment or a strong belief that it will affect the afterlife.

I used to go dancing with my girlfriend and other friends. It came to our attention that we could not all go dance at the same time or when we got back to the table all the beers would be gone, even though we had just got them. It reinforced something my dad used to say 40 years ago: “If it ain’t nailed down it is going to disappear”. That, folks, is human nature. And the reason we need accountants. And police.

#107 Km on 02.19.21 at 7:32 pm

My partner works as a contractor for the City of Vancouver and Burnaby and Coquitlam. Expect your taxes to go up much higher as basically every lower mainland city is broke. Aging infrastructure and city building are not getting much new work done on them just enough to keep it going. All they ever hear from the city is just fix it as cheap as possible. Everyone thinks schools are getting new venting etc. Nope sorry just fixing what is broken and that is it. New pipes? Nope fix the old ones even if it means they will break again in six months. People are crying their taxes are so high here. Expect them to go higher because the cupboard is bare.

#108 Sail Away on 02.19.21 at 7:34 pm

#83 Nonplused on 02.19.21 at 6:27 pm

I personally don’t like the idea of owning a condo because the condo association has too much control and are often a bunch of Karens. I don’t even like home owner’s associations.

————

The only recourse when irritated by a petty tyrannical organization is to gain a director’s seat and confound their system by insisting the constitution and bylaws be followed to the letter.

Memorize Robert’s Rules of Order, continually question procedures used by the most troublesome or bullyish, introduce resolutions and revocations, demand full accountability on everything. If the conversation wanders, request it be redirected to agenda, etc.

This can be a fun and productive hobby.

#109 Captain Uppa on 02.19.21 at 7:35 pm

#84 KLNR on 02.19.21 at 6:28 pm
@#45 Captain Uppa on 02.19.21 at 3:59 pm
Regarding the ongoing message of urban centres being reborn post covid and blinded, mindless zombies regretting crossing into the loser-ness of suburbia, I say this … people don’t want to live in big urban centres. Get over it. Stop dismissing the overwhelming demand of suburbia and small towns as idiocy.

folks absolutely still want to live in urban centres, just can’t afford it. Suburbia is the purgatory of this planet.

——————-

Totally dismissive and incorrect.

#110 Nonplused on 02.19.21 at 7:36 pm

#7 Ponzius Pilatus on 02.19.21 at 2:05 pm
#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it.
BTW, there are people who think NASA is a giant waste of time and money.
We got lots of problems down here that need fixin.

————————————-

What’s the total budget for the recent Mars rover? I think it was $3 billion. A lot of money but not near enough to build a useless aircraft carrier. When we are measuring deficits in the trillions I don’t know if this is the first thing to worry about. Besides I would pay a little tax to know what is out there. But maybe not everyone would.

#111 IHCTD9 on 02.19.21 at 7:37 pm

#84 KLNR on 02.19.21 at 6:28 pm
@#45 Captain Uppa on 02.19.21 at 3:59 pm
Regarding the ongoing message of urban centres being reborn post covid and blinded, mindless zombies regretting crossing into the loser-ness of suburbia, I say this … people don’t want to live in big urban centres. Get over it. Stop dismissing the overwhelming demand of suburbia and small towns as idiocy.

folks absolutely still want to live in urban centres, just can’t afford it. Suburbia is the purgatory of this planet.
—— — –

Total Bullshit. Half the professionals in the gta would be gone tomorrow if wfh was open permanently, and universally. If there were little Brampton’s and Markham’s all over Canada, another 25+% of the GTA’s population would vaporize.

The GTA is a prison. The second wfh showed up, sfd prices from Cobourg to cape breton went parabolic faster than you can say “let’s gtfo of here!”.

#112 WTF on 02.19.21 at 7:39 pm

#91 Hal It’s easier to live in a house than a equity.

15% Of the proceeds from my equity goes to rent in DT Van. Principle remains untouched. All good. Equity growing.

#113 Nonplused on 02.19.21 at 7:41 pm

#13 45north on 02.19.21 at 2:19 pm

Official Languages Minister Mélanie Joly: “French is a minority language in this country, and the Government of Canada recognizes the need to intervene vigorously to counter and remedy its decline.”

—————————————-

Ya pretty amazing to think that the government thinks that they can control what language we speak. My parents learned to speak English because they needed to, but among their relatives they still spoke Dutch. But why anyone would try and save French in this country is beyond me. Time to learn Cantonese or Spanish.

#114 Diggs on 02.19.21 at 7:46 pm

#38

“Bin der … dodged a bullet and made out well.” – is that a tip of the cap to the current gang strife in the region? (slow clap)

I grew up in North Delta and the one thing I have noticed is with the rapid population growth in the Metro YVR Region, Delta’s population growth feels almost stagnant. I am sure the ALR has something to do with it.

Not sure what the resale value on a condo would be long term for Delta and their City Council does not seem the most progressive.

#115 Seriously on 02.19.21 at 7:49 pm

#80 Trevor Wilkie on 02.19.21 at 5:49 pm
Obsessed about real estate? Real estate is about NOT being homeless Garth. Basic survival of the individual and the species. Its about feelings? Blah? Omg. Ever had to wonder if you might lose your house Garth? Not likely. I never saw who you actually are until now. Blah blah blah…..
…………
Such drama. Real estate is NOT about NOT being homeless. Do renters have a roof over their heads? Yes.
Reading comprehension isn’t your strong suit, apparently.

#116 Faron on 02.19.21 at 7:50 pm

#81 Brian Ripley on 02.19.21 at 6:19 pm

My Housing Starts charts are up with current data:
all provinces covered are down double digits

Thanks for the charts and the data. Bad news about housing starts for anyone looking for cheaper dwelling be it ownership or rental. Once immigration or any other forms of pop growth kick back in, we’re extra hooped.

One would think that by now the prices would be driving construction. Anecdotally they seem to be around here.

#117 Nonplused on 02.19.21 at 7:55 pm

#50 JMann on 02.19.21 at 4:14 pm
#1 For real, how many of you blog dawgs actually really enjoy home ownership? Emphasis on “ownership”

I enjoy home ownership. Like really, actually, enjoy home ownership. For the moment, I am “renting” my house from the bank but the interest payments, property taxes, maintenance, and utilities are still way less than what it would cost to rent the same place.

My wife and I rented when we first got married and we were able to save up a ton while renting, so nothing against renting. And with current house prices, not sure what we would do if we had to do it again.

Garth – I have never understood why you don’t included principal repayment in your simplified comparisons of cost of monthly rent versus monthly cost of ownership. Perhaps you’ve explained why in the past and I missed it. At the end of 20/25 years, you have a paid-off home so why is that omitted from your calculations?

———————————-

That’s not fair to Garth. He has provided many calculations that include principle repayment. But they are usually 5 year comparisons or greater.

But I think the sentient point here is that principle repayment is not a market gain, no matter what your house price does. You could put the repayment in a B&D and get 6% while not paying the principle at all and still enjoy any losses or gains on the house.

Interest only mortgages might be next. Well I guess we already have the HELOC.

#118 crowdedelevatorfartz on 02.19.21 at 7:56 pm

@#107 Km
“People are crying their taxes are so high here. Expect them to go higher because the cupboard is bare.”

+++

Yep.
And dont forget, the underfunded municipal employee pensions need a top up with tax dollars…

#119 Jerry Styman on 02.19.21 at 7:58 pm

Garth, I don’t know where Lee is living in Toronto but my property taxes alone are up 7.8% or $285 just this year, over $1,400 over 5 years plus another $600 in garbage, utility fees bill and water bill another $400 over 5 years.

This is $2,400 more we have to pay in new taxes, fees, water bill etc. just in 5 years. This is not alot, this person must work for the city of Toronto. What Lee and others don’t understand is you have to make at least another $3,500 more in gross income just to pay for these new taxes.

Wake up and live in the real world Lee and other government workers.

#120 Keith on 02.19.21 at 8:00 pm

@#1

Real estate can be a place to hang your hat. It can also be a home. The motivation for my parents was simply to be free of a landlord. Free to decorate or modify the house, any way you choose. The satisfaction of investing your sweat equity to make your home more liveable, or more personal, with the kicker of adding value.

House ownership offers a feeling of security, however illusory that is difficult to match. The satisfaction of owning land is difficult to explain, but very real.

Very few people are able to invest successfully on their own, and you can’t live inside a stock certificate. It is true that the vast majority of Canadians, who managed to buy real estate have enjoyed a profit on their down payment over time, while paying a mortgage that over time can be significantly lower than rent. A paid for family house, despite all the drawbacks and very real costs, has been a pillar of middle class net worth for a very long time.

The average house on the west side of Vancouver was 17,500 in 1963. By 1997 278,000. In 2017 4.4 million. You can bet against real estate if you like. So far, history is not on your side.

#121 kommykim on 02.19.21 at 8:02 pm

RE: #7 Ponzius Pilatus on 02.19.21 at 2:05 pm
#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it.
BTW, there are people who think NASA is a giant waste of time and money.
We got lots of problems down here that need fixin

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

The comment about Mars makes it look like we wasted a lot of money creating computers, the internet, etc…
Your pet issue is not necessarily the same as everyone else.

#122 Cici on 02.19.21 at 8:09 pm

#1 erik mtl

Here’s my 2 cents from experience:

For most young, single people, ownership is about bragging rights. The have-not peers look up to or even envy the owners, who are usually totally stressed about their home’s value and their own personal finances, but really need those few minutes of weekly fame that ownership brings.

Then comes marriage, and homeownership is all about the American dream. Stability for the kids, a place to host get-togethers with family and friends, but also a place to accumulate a ton of crap you don’t really need and waste a ton of money you don’t really have on constantly beautifying and renovating your place to your everchanging needs.

Fast-forward a few years and you’re either still married or divorced. Most divorcees take refuge in a condo; the guys especially, with big dreams and plans for their strata lovenest. The married types usually devote more time to their houses than their relationships, mostly out of habit but also just because the romance usually does eventually fade, even if you’re one of those lucky couples that still really like each other after all those years. What to do? The guy pours all his energy into mowing the lawn, landscaping and other such projects, and the woman remodels every single year to the tune of tens of thousands of dollars. Everyone’s happy, until winter comes along. Time to leave the nest and overwinter in Florida.

Oh, and the renters? They foresake the pride of ownership, don’t spend a lot of money on improving digs don’t belong to them, and only feel sorry for themselves until something breaks and all they have to do is pick up the phone and make a single call to have it taken care of. Over the years, an incredible laziness sets in and you find things other than granite to care about. Once in awhile, you’ll check the price of real estate and then quickly change your mind. You’ll also feel sorry for all the suckers who are about to overbid on a fixer-upper that needs a new roof and a bunch of other urgent repairs or a condo with “an amazing view” soon be blocked by the next monstrous condo development mushrooming up beside it.

#123 IHCTD9 on 02.19.21 at 8:13 pm

#93 Penny Henny on 02.19.21 at 6:48 pm
#25 Dominoes Lining Up on 02.19.21 at 2:47 pm
A $500,000 home in Toronto has property taxes of about $3000.

A $500,000 home in London, Windsor, Mississauga, Kingston and a bunch of other places will have taxes of $5000-$8000.
/////////////////

Dominoes I like you so please don’t take this as a slag but a $500,000 ACV home in Toronto would be taxed at about $2000-$2200 per year, maybe even less.
Here in Welland a $500,000 ACV home would be taxed at about $2800-3000/ year.
Admittedly still a difference but in reality what does ACV mean at all if the tax base covers all the expenditures, which is all that matters.
BTW assessment value means nothing, my house is assessed at $218,000 and I could sell it for $600,000 tomorrow.
————

DLU isn’t off by much, it depends where you live. One of my bro’s lives in Hastings in a ~600k house and shells out near 5k for property tax. No sewer, sidewalks, streetlights, water etc.. I hear property taxes in Sudbury are right in line with 5-8k for a 500k house. In my area, a typical 500k house would be ~3.5k, and a 1 mil house ~8k+. That’s all with zero city services.

My place is probably ~500k, and 3K taxes, MPAC value 220k.

#124 Blutterfy on 02.19.21 at 8:14 pm

Let’s not forget we have a federal election coming up this fall. I highly doubt there will be any house tax, tax, or generally reducing the cash coming out the pipes anytime until October.

#125 Nonplused on 02.19.21 at 8:22 pm

#66 WDL on 02.19.21 at 4:57 pm

“hideously costly children.” Shame on you, Garth. Children are a blessing!

———————————–

Yes they are, like skiing, once you get used to the horrendous cost of cost of lift tickets, equipment, lunch, and bad weather. But trust me kids cost much more than skiing. What happens is you adapt to your decisions.

For honesty skied a lot and have 3 kids I taught to ski. Holy crap that becomes expensive as they all 3 of them need new equipment every 2 years. Hockey is just as bad. Piano lessons? Pull out the wallet and expect little progress. Soccer is the best of the value for money, if your kid likes it, but Dog forbid they make the finals and it is in a different city. You can go to Cancun for that kind of money. And maybe baseball. And don’t forget they all need their own laptop and phone now. And money for college. And probably a car. Yesh.

$$$$$$$$

#126 Cici on 02.19.21 at 8:30 pm

#27 Dolce Vita

Wow, those places in Tuscany (especially the last one) are gorgeous.

The crap on HGTV could never rival.

Time to finally learn Italian!

#127 crowdedelevatorfartz on 02.19.21 at 8:31 pm

@#124 Blutterfy
“Let’s not forget we have a federal election coming up this fall. ”

++++

Afterr next months budget speech?
And the roll out of the Vaxx fiasco?
Try late Spring early Summer.

#128 IHCTD9 on 02.19.21 at 8:32 pm

#113 Nonplused on 02.19.21 at 7:41 pm
#13 45north on 02.19.21 at 2:19 pm

Official Languages Minister Mélanie Joly: “French is a minority language in this country, and the Government of Canada recognizes the need to intervene vigorously to counter and remedy its decline.”

—————————————-

Ya pretty amazing to think that the government thinks that they can control what language we speak. My parents learned to speak English because they needed to, but among their relatives they still spoke Dutch. But why anyone would try and save French in this country is beyond me. Time to learn Cantonese or Spanish.
——- –

Aye, French is doomed in PQ, they can fight it but it’s a lost cause.

My folks’ first language is also Dutch, and family get togethers when I was young were always Dutch speaking affairs. But, when my grandparents passed away, Dutch went with them. All get togethers since have been in English. Some of the older folks have commented that both my parents speak their native Frisian with an English accent, even though English is their second language.

Right now, English is the most popular second language on the planet. It is the language of business. Eventually, everyone will have to speak it.

#129 MF on 02.19.21 at 8:32 pm

122 Cici on 02.19.21 at 8:09 pm

Lol I love this comment.

Looks about accurate from the older cohort I know (not my parents thankfully).

MF

#130 Drinking on 02.19.21 at 8:36 pm

#122 Cici

It has been awhile since I was at my Garth’s cut off limit much to his delight.. :)

But I will give you a clap,clap,clap for one who understands what you are saying. :)

#131 twofatcats on 02.19.21 at 8:57 pm

#93 Penny Henny

My house here in Wainfleet, ON (population 6,000) is assessed at $483K and my taxes are just over $7000.

#132 Stop the nonsense on 02.19.21 at 9:03 pm

#24 Don Guillermo on 02.19.21 at 2:46 pm
#7 Ponzius Pilatus on 02.19.21 at 2:05 pm
#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it
***************************************
You like Trudeau. I don’t get it.
*************************************
You don’t like someone that likes Trudeau. I get it.

#133 Ponzius Pilatus on 02.19.21 at 9:07 pm

Vaxx Fiasco?-
We should be thankful that problems with the manufacturers delayed the vaccinations for a few weeks.
Now most of the kinks are fixed, and she’s ready to go.
Pfizer has now announced that the vaccine can now be stored in a regular freezer, saving us tons of money, and will speed up the distribution.
I always say, never buy a first year model.
I learned the hard way.
Bought a VW Rabbit with the first electronic ignition.
The car spent more time in repair than me driving it, during the first year.

#134 Just saying is all on 02.19.21 at 9:13 pm

I know how we love our ETF’s here ….soooo the worlds very first Bitcoin ETF launched in Toronto,Canada yesterday. It holds only Bitcoin which are in cold storage custody. BTCC on the TSX. You can ride the wave and protect yourself against worthless FIAT paper currency and give your thumbs down to the BoC at the same time, what fun. In your TFSA or RSP too. Sweet. Bitcoins now 56000 btw.

#135 Ponzius Pilatus on 02.19.21 at 9:18 pm

Ya pretty amazing to think that the government thinks that they can control what language we speak. My parents learned to speak English because they needed to, but among their relatives they still spoke Dutch. But why anyone would try and save French in this country is beyond me. Time to learn Cantonese or Spanish.
——- –
———–
Spanish, I agree.
But Cantonese is only spoken in HongKong and small parts of China. I think you mean Mandarine.
IHTC,
It’s been shown that people who learn to speak another language makes them more open minded and Cosmopolitan.

#136 Dominoes Lining Up on 02.19.21 at 9:19 pm

# 93 Penny Henny

You are completely wrong. Don’t make things up, it just makes you look really, really stupid. I hope you are better than that.

Look at facts first, not your “real estate feelings” as Garth has so aptly pointed out.

https://www.blogto.com/real-estate-toronto/2020/11/toronto-homeowners-pay-lowest-property-tax-rates-all-ontario/

Toronto tax rates are now at about .oo6% of assessed value.

https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-calculator/property-tax-calculator/

Assessed value does “mean” something; it is what MPAC says your home is worth according to markets. The higher above assessed value a property sells for, the more unrealistic your market is.

BTW, in Welland, a $500,000 assessed value would yield property taxes of:

https://www.welland.ca/Finance/TaxCalculator.asp

$8000

Not “$2800-3000/year” as you said.

MPAC does assessments every four years, and reassessments on request. There will likely be many assessments that are now out of date due to the Covid bubble effect.

Anyway, your point is self-delusionally off topic.

My point is that Toronto’s property taxes are incredibly low based on provincial comparisons, and that sets the city up for significant problems if the commercial taxes that subsidize residential property taxes are reduced/

#137 Enigma within a cliche on 02.19.21 at 9:25 pm

#30 yorkville renter on 02.19.21 at 3:03 pm
it needs to be said…

I LOVE my grotesquely expensive children!!!

________________________

Now that we have that out of the way, perhaps you could explain why I am subsidizing your children’s education and why you receive considerable tax benefits for them. You do pay taxes, right… You aren’t one of those Canadian 40%ers, right?

If you actually had to pay for them, you would truly understand what grotesquely expensive really was.

BTW.. You forgot to thank me for pitching in!
You’re welcome.

#138 Drinking on 02.19.21 at 9:26 pm

Sneaking one in, could not resist.

Always check what is in the hole before one does or what is needed. Did they own it or rent it, maybe leased it?? :)

https://globalnews.ca/news/7650296/bear-bite-outhouse-toilet-alaska/

#139 mike from mtl on 02.19.21 at 9:33 pm

#128 IHCTD9 on 02.19.21 at 8:32 pm
#113 Nonplused on 02.19.21 at 7:41 pm
#13 45north on 02.19.21 at 2:19 pm
////////////////////////////////////////////////////////////

Yes this is crazy and alludes back to the “Canadian” identity – we currently have none. Back in the 19th century that was an acceptable practise as a compromise, today is idiotic on a national level. I can read and speak French due to the people who surround me, I don’t expect the same from folks in Richmond, BC – that is nieve at best, racist at worst. Canada is a huge landmass that imports huge amounts of people per year and can’t expect everyone to speak our language as some sort of given right.

This is a long standing issue that needs to be finally addressed, apparently the 20th century has not occurred to the Québécois that perhaps they are not relevant nationally but apparently in 2021 they still are is a testament to the status quo.

Again I have no issue learning a local human language to work and live, it’s not that hard. When a language gets to the point of a nationally and codified to a national identity, no, that is wrong.

Canada is bilingual. Get over it. – Garth

#140 Phoney Baloney Maloney on 02.19.21 at 9:37 pm

40 Mewling Shrew on 02.19.21 at 3:48 pm

The biggest problem with renting, in my view, is that Canada still allows forced evictions. (Despite housing being a “right.”)

___________________________

Stupidity is also a “right”.
Now what exactly were you saying before I interrupted you?

#141 AM in MN on 02.19.21 at 9:40 pm

Too many people think the CB will keep rates low and mortgages affordable because it would be electoral suicide for the Govt. to allow the carnage that would follow a huge rate increase.

They are fools. The Govt. & CBs will only fight the market so far to look after leveraged homeowners. They will look after themselves first.

In the ’08/’09 crash in the US the banks went from 0% downpayments to begging you to put cash in savings accounts in less than a year.

They managed THEIR losses (not yours) by offering to rent you the house you were living in (for a while anyway) if you just signed it over to them. it was also suggested to get a 2nd job to help stay in “your” house. (Not the one you owned, because you didn’t anymore, but the one you were emotionally attached to)

Welcome to the future if you are too highly leveraged to afford the payments once the rates go up. Think 1970’s type inflation/rates…without the wage increases for the 50% of people who work for or get funded by some level of Govt.

#142 AB on 02.19.21 at 9:44 pm

#109 Captain Uppa
You are absolutely correct! The trend , even without this nasty covid , is internal migration to smaller , friendlier cities and towns. We cashed out and are extremely happy in a beautiful city of 68,000 souls. It has everything we need without the high taxes and ridiculous “ progressive” politic’s of a big city. Common sense is a good thing!

#143 Living on borrowed time on 02.19.21 at 9:49 pm

#39 Darren on 02.19.21 at 3:46 pm

Owning is a false sense of security. See what happens when you stop paying your taxes or mortgage. You own nothing everything is borrowed

_________________

I absolutely agree with you, Darren!
That includes your precious time on this earth. So stop wasting it with your self-aggrandizing rationalizations.

See what happens when you stop paying your rent!

#144 Stoph on 02.19.21 at 9:55 pm

#126 Cici on 02.19.21 at 8:30 pm
#27 Dolce Vita

Wow, those places in Tuscany (especially the last one) are gorgeous.

The crap on HGTV could never rival.

Time to finally learn Italian!

—————————————————————

For a second I thought you were talking about Calgary’s Tuscany.

https://goo.gl/maps/2EyBj5MYgyH22hj69

#145 Racy comment on 02.19.21 at 10:19 pm

#56 Moonshine on 02.19.21 at 4:35 pm
Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

For me that’s a racist comment…Quebec bashing is too
frequent on this blog
_____________________________

All joking aside… You must admit, those Quebecers are indeed a horrible race. Especially the ones that speak Frenglish!

#146 crowdedelevatorfartz on 02.19.21 at 10:25 pm

@#135 Ponzie’s Poutine
” I think you mean Mandarine.”

++++

I think you mean Mandarin…..unless, of course, you talk to ….Oranges?

#147 9-1-1 on 02.19.21 at 10:27 pm

#86 Drinking on 02.19.21 at 6:31 pm
#74 Lieutenant Commander Data

Bingo, Canadians do not own the land only an expensive lease. At anytime, governments can exercise the rights to annexation for whatever reason they feel is appropriate. At least the Americans got it right!

_______________________

Honey, call the ambulance! Another one of Garth’s looney tunes has been drinking again and fallen out of the steerage section.

#148 Father's Daughter on 02.19.21 at 10:45 pm

#137
Now that we have that out of the way, perhaps you could explain why I am subsidizing your children’s education and why you receive considerable tax benefits for them. You do pay taxes, right… You aren’t one of those Canadian 40%ers, right?

If you actually had to pay for them, you would truly understand what grotesquely expensive really was.

BTW.. You forgot to thank me for pitching in!
You’re welcome.
——————————————————————
So moral of the kids story is that we just shouldn’t have any because of the many terrible reasons outlined on this blog and due to a grotesque expense (which for some, is not highly subsidized and remains very expensive thank you very much)? And the future of society will be who exactly? Immigrants – most people don’t want many of them either. Who is the future workforce? Who pays future taxes? Future health care when you all get old? Yes, having a child has been a huge cost including loss of income/earning potential, but more important is the actual act of parenting. It’s a lot of work and anyone with any common sense knows that this is one way of contributing to society, by raising and providing for kids.

It’s selfish and shortsighted to negate the importance and value of kids in a society. We are better than some but Canada has a lot to learn from other countries about the way we value children. Sad.

So no, #137, you are welcome.

#149 Longterm on 02.19.21 at 11:11 pm

#1 erik mtl on 02.19.21 at 1:43 pm

For me, at this stage of life, owning is a massive benefit.

My wife and I rented for a decade in Vancouver and then lived overseas for a decade, renting all the time, and travelling to many dozens of countries. Renting gave us the flexibility to move at the drop of a hat and pursue opportunity and experiences and save massive amounts of money. But when we came back to Canada about eight years ago we were looking to finally sink some roots. So we bought about 6 acres of land and then built our own super efficient low-energy house by hand. Important to me, I buit a library in the house to hold the thousands of books I’ve been storing and dragging aroudn for decades.

We’ve also set-up massive food gardens and have planted dozens of fruit and nut trees. After so many years living as if we might move tomorrow, it’s great to think longterm and build with the idea of permanence, meaning not cutting corners and building only with quality, durable materials and whimsy because we don’t need to think about resale value. Longterm also encompasses activities like planting nut trees that my daughter will be able to harvest when she owns this place in 30 of 40 years and managing a woodland. My daughter also gets the benefits of growing up here, climbing trees, playing in mud holes and sand piles, having a treehouse, shooting her bow and arrow, raising chickens, mountain biking, etc.

#150 BobinKits on 02.19.21 at 11:19 pm

#120 Keith
The average house on the west side of Vancouver was 17,500 in 1963. By 1997 278,000. In 2017 4.4 million. You can bet against real estate if you like. So far, history is not on your side.
*************
That maybe true for Vancouver, Kitsilano etc, but there are many other areas of the country where you are not getting these exceptional gains, ie Alberta. And remember, you only get this gain if you sell….what happened during the last 25 years is not necessarily what is going to happen in the next 25 years. There will always be peaks and valleys and in general I would expect housing to increase in value, but to what extent is anyones guess.

#151 Don Guillermo on 02.19.21 at 11:21 pm

#132 Stop the nonsense on 02.19.21 at 9:03 pm
#24 Don Guillermo on 02.19.21 at 2:46 pm
#7 Ponzius Pilatus on 02.19.21 at 2:05 pm
#177 Don Guillermo on 02.19.21 at 11:20 am
#122 Ponzy

Why does NASA waste billions on going to Mars?
****************************************

Trudeau spent enough to go to Mars 10 times. Should have said 100 times.
————-
Why stop there? Should have said 1,000 times.
You don’t like Trudeau. I get it
***************************************
You like Trudeau. I don’t get it.
*************************************
You don’t like someone that likes Trudeau. I get it.
***********************************

Wonderful extrapolation skills . Bonita notches!

#152 Ustabe on 02.19.21 at 11:35 pm

My house here in Wainfleet, ON (population 6,000) is assessed at $483K and my taxes are just over $7000.

My house is assessed at over $500,000 and my taxes are under $3,000.

So pretty useless correlation stat. Mill rate is what determines property taxes due, assessment doesn’t really matter.

Hey, do you know why we can fly a drone on Mars but can’t turn on a light in Texas? Because scientists are in charge of Mars, Republicans are in charge of Texas.

#153 westcdn on 02.20.21 at 12:22 am

I still put money into the market. I make coin but don’t know how long that will last. I have taken heavy losses and came back.

Real estate is a place for me me to live and pay taxes. I would like to upgrade the home but I have better to place the money.

It has been a fun run for now. My daughters and grandchildren
will survive or I will die trying.

#154 Lead Paint on 02.20.21 at 1:12 am

#85 A prefrontal lobotomy might be just the thing on 02.19.21 at 6:28 pm
You mentioned pulling $120k annually out of a $2M portfolio. Isn’t 4% the recommended withdrawal rate? I’m planning on retiring with a $2M portfolio shortly and figured I’d have to get by on $80k. I have absolutely nothing backing me up so figured I need to be conservative.

That fella has db pension as well, so can afford to be a bit less conservative, he’ll never run out of funds. Isn’t it wonderful how generous we are to our civil servants?

#155 Ponzius Pilatus on 02.20.21 at 1:20 am

Is it just 25 years since the famous “Shawinigan Handshake”.
Chrétien choking a protester.
Good old days.
https://theprovince.com/news/its-been-25-years-since-jean-chretien-choked-a-protester/wcm/6f1c8cd9-a1fd-448f-9f6d-9afbb304233b

#156 Lead Paint on 02.20.21 at 1:33 am

#137 Enigma within a cliche on 02.19.21 at 9:25 pm
#30 yorkville renter on 02.19.21 at 3:03 pm
it needs to be said…

I LOVE my grotesquely expensive children!!!

________________________

Now that we have that out of the way, perhaps you could explain why I am subsidizing your children’s education and why you receive considerable tax benefits for them. You do pay taxes, right… You aren’t one of those Canadian 40%ers, right?

If you actually had to pay for them, you would truly understand what grotesquely expensive really was.

BTW.. You forgot to thank me for pitching in!
You’re welcome.

You put yourself through private school as a child? Very impressive! And regardless of where yorkville renter sends his kids to school he subsidises lots of peoples healthcare.

Someday his educated kids might grow up and take care of you when you’re old… hopefully you’ll grow up by then!

#157 Nonplused on 02.20.21 at 1:34 am

Back to the Texas power thing, if my YouTube recommendations are to believed there are going to be a lot more people trying to back feed their houses with a portable generator and not a proper transfer switch coming up. This is bound to end badly. “Suicide whips” are just that. (A cord with two male ends. This is why you can’t buy them.)

But this solutions seems pretty good:

https://www.youtube.com/watch?v=GLgtFCJlVFQ&t=310s

It can be installed with just shutting off the mains, and the generator can never cross with the grid. Only ten circuits but that should be enough if you can live without your dryer and electric range (the 220V stuff) for a few days or weeks. The microwave, fridge, and furnace will work. The hot tub won’t but the sump pump will so you can empty it before it freezes. Hopefully if you have a well and septic it is 110 so it could be powered too. But you only get 10 circuits so chose wisely. I think this is how I might go. It looks simple enough that I might be able to do it myself if the mains are off, but I have an electrician friend I’d probably pay to do it.

Then when the power goes out, you pull out your 9000 watt portable, however it is fueled, plug it in, start it up, and no power goes to the grid. Each of the ten circuits when switched to the generator are isolated from the grid. Seems pretty smart.

#158 Nonplused on 02.20.21 at 1:47 am

#139 mike from mtl on 02.19.21 at 9:33 pm
#128 IHCTD9 on 02.19.21 at 8:32 pm
#113 Nonplused on 02.19.21 at 7:41 pm
#13 45north on 02.19.21 at 2:19 pm

“Canada is bilingual. Get over it. – Garth”

Actually multi-lingual would be a better way to describe it at this point. Quebec especially.

Years ago I went to Holland and visited some of the relatives I still had there. I asked them to teach me some Dutch. Their reply? “Why would you want to learn Dutch? It is a dying language. Help us with our English.” Which was strange because their English was already pretty good.

#159 Nonplused on 02.20.21 at 1:58 am

#128 IHCTD9 on 02.19.21 at 8:32 pm
#113 Nonplused on 02.19.21 at 7:41 pm
#13 45north on 02.19.21 at 2:19 pm

Official Languages Minister Mélanie Joly: “French is a minority language in this country, and the Government of Canada recognizes the need to intervene vigorously to counter and remedy its decline.”

—————————————-

Ya pretty amazing to think that the government thinks that they can control what language we speak. My parents learned to speak English because they needed to, but among their relatives they still spoke Dutch. But why anyone would try and save French in this country is beyond me. Time to learn Cantonese or Spanish.
——- –

Aye, French is doomed in PQ, they can fight it but it’s a lost cause.

My folks’ first language is also Dutch, and family get togethers when I was young were always Dutch speaking affairs. But, when my grandparents passed away, Dutch went with them. All get togethers since have been in English. Some of the older folks have commented that both my parents speak their native Frisian with an English accent, even though English is their second language.

Right now, English is the most popular second language on the planet. It is the language of business. Eventually, everyone will have to speak it.

—————————

Hmm my mother is Frise, my father being proper Dutch. At one time she was fluent in all three official languages of Frise immigrants, Frise, Dutch, and English. I don’t know if she still speaks Frise because she has run out of people to speak it with. I am pretty sure she can still do Dutch complete with the accent but she speaks English without an accent and has so long as I have known her.

I’m still saying English, Cantonese or Mandarin, and Spanish. You don’t have to worry about Arabic, Indian, or Japanese because they all speak English better than we do.

#160 Nonplused on 02.20.21 at 2:08 am

#108 Sail Away on 02.19.21 at 7:34 pm

I was on the Student’s Union board many years ago, and while I will agree that Robert’s rules are essential for there to be any sort of order, don’t expect it to solve anything or even keep things on track. It only works if everyone plays fair. Sort of like soccer rules. I absolutely guarantee you the condo board and home owner’s association Karens are not going to play fair. Unfortunately there is no ref to eject them.

#161 Zagat Iraman on 02.20.21 at 2:44 am

Delta? Bwahahaha !!! You can’t say “investing” and “Delta” in a sentence without a belly laugh. Delta is a fringe ghetto with more crack labs and grow ops than people. If you have any qualifications at all you’ll get the hell out of Canada and invest in the US.

If you aren’t qualified, the US Immigration website lists the top skill sets they’re looking for. You’ll be surprised at the opportunities and you don’t have to be a doctor or rocket scientist. In fact I don’t think doctors are even on the list.

Get the hell out of Canada, at least for your Covid vaccine which is not available in Canada and will only be administered by race.

Even with $400 K CDN you can buy a big beautiful home in many states. Canada under Trudeau is increasingly a “no-go zone” and the collapse in immigration numbers proves that point. No well educated foreigner wants to meet Job Killer # 1 Trudeau at the airport for a photo-op and to be race profiled so it seems. In fact there are more immigrants leaving than arriving. In the past year I’ve witnessed a 25% drop in my offices. Here one day, gone the next. If anything Canada is just a stepping stone visa.

If someone is considering Delta, it means they’ve never been to Delta.

#162 NSNG on 02.20.21 at 3:10 am

#68 Don Guillermo on 02.19.21 at 5:01 pm

#56 Moonshine on 02.19.21 at 4:35 pm
Ponzius Pilatus on 02.19.21 at 2:29 pm

#17
Forgot to mention, many street cars in Europe are made by Bombardier.
Something to be proud of, even though it’s from Quebec.

For me that’s a racist comment…Quebec bashing is too
frequent on this blog
*************************************
Hate to break it to you but Quebec’s not a race.

If a cat is a race around this blog then so is Quebecois.

#163 Wrk.dover on 02.20.21 at 4:48 am

You either buy a car or rent. You don’t just buy the interior and pay strata on the rest. Just saying.

Commune minimum share. Nah.

#164 Canada on 02.20.21 at 7:40 am

Has become a joke . No country on a per capita basis is spending more then Canada during covid .anyone see ontario’ s latest job loses ? And yet idiots r buying 2200 square foot house for $1.5 mill in Mississauga.

We have become a joke

#165 Sail Away on 02.20.21 at 8:03 am

#146 crowdedelevatorfartz on 02.19.21 at 10:25 pm
@#135 Ponzie’s Poutine

” I think you mean Mandarine.”

————

I think you mean Mandarin…..unless, of course, you talk to ….Oranges?

————

Yep, Ponzie just insinuated that 918 million people are a small ovoid citrus fruit with loose skin.

#166 NoName on 02.20.21 at 8:19 am

Is Alex MF?

#167 Sail Away on 02.20.21 at 8:23 am

#152 Ustabe on 02.19.21 at 11:35 pm

Hey, do you know why we can fly a drone on Mars but can’t turn on a light in Texas? Because scientists are in charge of Mars, Republicans are in charge of Texas.

————

NASA is in Texas, and you can bet their lights stayed on. My Army buddy Robert Pickle leads the Space Station refueling team. He leans Republican. Great guy. He could do 52 pullups straight.

Anyway… power’s back on now. Small emergency, now dealt with. These things happen in life.

#168 Oakville Rocks! on 02.20.21 at 9:12 am

#152 Funny.

Who would have guessed that when AOC plugs in a hair dryer in Brooklyn, the lights & heat go out in Austin.

I am not sure which is more surprising, that Republicans tried to blame their mismanagement on renewables and the green new deal or that so many (including the usual suspects in this blog’s comment section) were so gullible and ready to accept such a nonsensical explanation.

If only Richard Feyman was still around to open up a big ol can of common sense on their delusional *** .
The clan promoting cargo cult science just seems to grow larger every year.

#169 crowdedelevatorfartz on 02.20.21 at 9:32 am

@#158 Nonplused
““Why would you want to learn Dutch? It is a dying language. Help us with our English.” Which was strange because their English was already pretty good.”

++++

Tep.
I visited a friend in Thetford a few years back. We went golfing and stopped for a beer in the clubhouse later.
His english is perfect and my french almost non existent.
We speaking english and two groups formed around us.
Old francophones that started speaking english with us to practice their english.
The second group younger and grew increasingly agitated. One young guy finally got up and walked over and demanded( in french) to know why I couldnt speak french.
My friend translated my reply.
I told him I lived in Vancouver and if I was going to learn another language it would be Chinese.
I’m still working on that.

#170 the Jaguar on 02.20.21 at 10:00 am

Photo of Sail Away in this mornings NP. He’s not wearing he leopard ginch, but a new red outfit.

https://pressreader.com/article/282106344353499

oh dear….

#171 LP on 02.20.21 at 10:04 am

#11 Faron on 02.19.21 at 2:17 pm
I can confirm that those forces you outline Garth were at play when we bought our house last Nov. I was the only voice of “reason” in trying to resist them. I was outnumbered.
********************************

How could you be “outnumbered”. Surely the decision for/against was your and your partner’s alone. The moment you both allowed his/her father to have a say became the moment you were outflanked in your own household. That was a big mistake.

#172 George on 02.20.21 at 10:07 am

anyone who thinks the GTA will be ‘back to normal’ is either delusional or has never run a business

https://www.theglobeandmail.com/business/article-retailers-rattled-as-covid-19-lockdowns-extended-in-toronto-peel/

shit show on her way folks ….

https://www.cbc.ca/news/canada/toronto/ontario-march-jobs-covid19-1.5527942

we have idiots running the show, and no one seems to care. Too busy flipping houses? :)

#173 Dharma Bum on 02.20.21 at 10:17 am

Forget buying a house.

Forget renting.

Do like our most famous Canadian celebrity comedian, Tom Green:

LIVE IN A VAN!

https://www.youtube.com/watch?v=s8A1TMqFwYY

#174 Dharma Bum on 02.20.21 at 11:16 am

@#135 Ponzie’s Poutine

” I think you mean Mandarine.”
———————————————————————–

Mandarine – ala Frank Zappa

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

Dyna Mo Humm

#175 crowdedelevatorfartz on 02.20.21 at 11:29 am

@#170 The jag

Ahhh yesss.
Sean Connery in Zardoz.
Possibly THE worst movie ever made.
Occasionally shown on late night tv for insomniacs.

https://en.wikipedia.org/wiki/Zardoz

#176 crowdedelevatorfartz on 02.20.21 at 11:48 am

An excellent NASA video for the Mars lander ( about the size of a car) stages from space to touchdown.
3 mins long.

https://www.youtube.com/watch?v=rzmd7RouGrM

#177 flop... on 02.20.21 at 11:50 am

But, if Alex listens to the above pretty analysis, he will be a lifetime 1 bedder!

#178 IHCTD9 on 02.20.21 at 11:51 am

#163 Wrk.dover on 02.20.21 at 4:48 am
You either buy a car or rent. You don’t just buy the interior and pay strata on the rest. Just saying.

Commune minimum share. Nah.
—- —-

Agreed, condo ownership is the worst of both worlds. Better to rent ‘em and let the LL subsidize your monthly via dealing with: insurance rates going to the moon, strata fee increases, 5 figure special assessments, and all the fist fights at the condo board meetings.

#179 Faron on 02.20.21 at 11:59 am

#171 LP on 02.20.21 at 10:04 am

#11 Faron on 02.19.21 at 2:17 pm

I don’t think of this as a milataristic conflict in which I could be “outflanked”. Saying I was outnumbered was a bit of a joke. The choice was between digging my heels in and saying no whilst knowing my bias for overweighing risk or seeing my partnership as equal and giving her the benefit of the doubt. I’ll admit to absorbing some advice along those lines from this comments section.

#180 Sail Away on 02.20.21 at 12:06 pm

#171 LP on 02.20.21 at 10:04 am
#11 Faron on 02.19.21 at 2:17 pm

I can confirm that those forces you outline Garth were at play when we bought our house last Nov. I was the only voice of “reason” in trying to resist them. I was outnumbered.

————-

How could you be “outnumbered”. Surely the decision for/against was your and your partner’s alone. The moment you both allowed his/her father to have a say became the moment you were outflanked in your own household. That was a big mistake.

————-

One must choose their hills to die on. Although Faron has perhaps more of those hills than most people, I suspect in this case he used discretion.

#181 Faron on 02.20.21 at 12:07 pm

#167 Sail Away on 02.20.21 at 8:23 am

#152 Ustabe on 02.19.21 at 11:35 pm

Hey, do you know why we can fly a drone on Mars but can’t turn on a light in Texas? Because scientists are in charge of Mars, Republicans are in charge of Texas.

————

NASA is in Texas, and you can bet their lights stayed on.

Lemme guess, they stayed on because of pullup energy?

Of course they did kept the lights on, NASA is loaded with scientists and party agnostic. Duh.

#182 Sail Away on 02.20.21 at 12:18 pm

#181 Faron on 02.20.21 at 12:07 pm

Of course they did kept the lights on, NASA is loaded with scientists and party agnostic. Duh.

———–

The proper phrasing is ‘done kept’.

#183 Papabear on 02.20.21 at 1:23 pm

I am curious about how population growth will factor into our housing crisis.

According to the World Bank, Canada’s population (immigration + births vs deaths + emigration) is around 1%. So one percent of 35 million people is 350k net more Canadians every year. Even if we subtract all the newborns and elderly, that’s still a lot of people. I doubt all of the new 18-64 arrivals are coming with empty pockets.

These new Canadians have to live somewhere, right? And they are going to go to where the jobs are…

Is this a statistically significant number of people to affect housing prices one way or the other?

#184 cristian on 02.20.21 at 3:59 pm

Hi Garth, one question if that’s OK .. As of now where can I find out the bond yield value they use to calculate commuted DB pension value
I found a commuted DB value calculator but not sure about the yield .. maybe around 2% ?
http://bulletin.lifeguide.com/cgi-bin/cv.pl
Thanks a lot

Hire an actuary. – Garth

#185 cristian on 02.20.21 at 4:41 pm

LOL .. Thanks Garth .. me again .. I think I found it

https://www.ftserussell.com/spotlight/canada-commuted-values

#186 Sweet child o' mine on 02.20.21 at 7:02 pm

#148 Father’s Daughter on 02.19.21 at 10:45 pm

So no, #137, you are welcome

________________________

I love how people try to lamely justify how their children are beneficial to me…as if my very survival is dependent on your children.

All I said is that I don’t want to pay for them. They are yours… You decided to bring them into this world. You pay for them. Without me subsidizing their education and your tax concessions, you would know how expensive they really are! After all, I am sure your children are just lovely and sweet… Just not to me!

Though if you are interested in returning the favor, I could use some help with the down payment on that new Porsche I’ve been eyeing!

#187 Just give up already on 02.21.21 at 3:55 am

People who, after all these years, still don’t understand that 95% of the population will put down 20% and borrow 80% to buy real estate, and the same 95% would never, ever, do the same to invest in ‘a balanced portfolio’, should just admit they are clueless about human nature and have no true understanding of the reason why the vast majority of wealth gained by Canadians has been due to home ownership, despite all the fancy ‘analysis’ of rates of return that ignore the single most important factor.

It’s called leverage. It works. And renting a home leads to the very real possibility that you will never be able to buy in your chosen location. Never.

And as for #1 eric mtl, asking if anyone actually enjoys home ownership, are you kidding? Do you watch tv? Have you noticed a few shows about housing and design?

Yes, some of us LOVE architecture, design, building, and living in a beautiful place that we can add value to.

The rest of you are like Campbell soup fanatics who can’t understand why anyone would eat an expensive restaurant meal, since ‘food is just fuel’.

Just give it up, you’ll never understand.