Giving it up

How craven has the world become?

Reflect on these words from a Blog Dog currently on contract with one of the Big Banks.

Working in any capacity that supports mortgage applications these days is similar to an all night shift in a Bangladesh garment factory..  The frenzy you detail on the blog each day is quite the eye opener when viewed from the box seats. Horrific.

Indeed. House lust is everywhere. Average people with average incomes and lacking real estate now must understand they’ll never own a house in a major market. A condo, maybe. But without the Bank of Mom and a mess of debilitating debt, nah, ain’t happening. We’ve done this to ourselves. Chinese dudes didn’t just inflate real estate in a pandemic by 30%. Iranians and Americans are not flooding into Ingersoll and Sechelt. In fact this damn virus has shrunk everybody’s world, grossly inflating properties within driving distance of urbanity.

Can government save us now? Allow the Millennials to retake Leslieville or Kits?

Nope. Too late. In fact government actions have made the FOMO worse. The new shared-equity mortgage. RRSPs allowed for down payments. First-timer grants and tax breaks. Local down payment subsidy plans. Tax-free PR gains. All of it has increased demand. The virus curtailed supply. WFH came along. The CB slashed rates. And now it’s a crisis of affordability.

We have a few snippets.

First, some braying from the horse’s lips.

While his boss, Tiff Macklem, seems tone deaf to the moister cries of real estate exclusion, his underlings are listening. Deputy boss Toni Gravelle this week said, “We have data on investment purpose, versus living-in purpose … we have data on how long before it went back on the market. Those things … they (would) indicate a lot more investment activity, a lot more flipping…. Definitely, as the winter went on and the spring started, our discussions have been more heavily proportioned to housing… One of the concerns we’re having is there’s starting to be ‘fear of missing out’ … and that might be driving some of the expectations.”

Wow. He actually used the word ‘flipping.’ And FOMO. Does this mean the feds will do something on April 19th?

Meanwhile the astute and talented little house-humpers at Royal LePage are at it again. This time reminding us property panic isn’t reserved for just regular residential properties, but also for bug-infested cottage country. Prices up 15% nationally. Almost 20% in Ontario. Big migration into Atlantic Canada. About 70% of agents say sellers get an average of four offers, and a third see more than ten bids. The projected two-year rise in values: almost 40%.

Says the company: “The flexibility provided by working remotely, excess savings from months sitting at home, and low interest rates have left Canadians young and old alike to seek properties with more space, easy access to nature, and the ability to achieve that ever-elusive work-life balance.”

LePage is silent on what happens when WFH ends, the virus is over, offices open again and the work-life balance people end up commuting four hours a day. Ooops.

By the way, all the major banks have now migrated mortgage rates form around 1.5% to over 2%. No biggie? Nah, not yet. But listen to what CIBC economists are saying: “The market is currently pricing in two (central bank) hikes in 2022, three in 2023, two more in 2024 and one hike in 2025.”

Just imagine if those increases materialize, just as real estate values are flatlining, or the end of WFH prompts a decline. More oops.

Now, our poll. We cut this off at about 5,500 respondents, just as the Pox Party was gaining ground on the Tories. Here’s what else you had to say about running the country…

199 comments ↓

#1 TurnerNation on 03.24.21 at 1:38 pm

How do you know this state of takeover in Kanada is here to stay? Simple. 50+ airport hotels have been converted into Freedom Kamps for returning citizens. Your negative CV test is no good here Comrade.
– At least two downtown Toronto hotels have been turned into Homeless Kamps.
– The push is on for this in other cities.

— The Long Game is being played. NO more tourists. Banned under the Green Deal. That’s what this travel shut-down is all about, So build back better: The empty hotels now are a money-making scheme. Pay-for-Freedom.

https://www.cbc.ca/news/politics/pandemic-covid-quarantine-hotels-1.5947515
“A Public Health Agency of Canada spokesperson said there are now 47 hotels serving as government-authorized accommodations in the four cities accepting international flights, and the agency is adding more hotels to the list. ”

— Surprising this did not pass. Cities’ spending will only be toward the Poverty Industry Complex. I’m sure they will ram it thru. Vancouver did this, too:

Fredericton Council Votes Against Contributing $900,000 To City Motel Project
Mar 22, 2021by Liam Floyd
https://huddle.today/fredericton-council-votes-against-contributing-900000-to-city-motel-project/
“FREDERICTON – In Monday evening’s City Council meeting, the council voted 6-5 against a motion to commit $900,000 to the project which would see the City Motel converted into apartments for homeless people”

— Pop quiz. What do you think will happen with the empty sports arenas – Scotia Centre, Skydome – in Toronto seeing as the Blue Jays, Leafs teams have been barred from this country? This is the Long Game being played.

“https://www.thestar.com/news/world/us/2021/03/17/dallas-convention-centre-readies-to-house-immigrant-teens.html
“DALLAS – Texas Gov. Greg Abbott said Wednesday that a surge of migration to the U.S. from Mexico resulted in federal officials “scrambling” to find housing for unaccompanied children in a late-night email to his staff over the weekend.
He relayed the story near Dallas’ downtown convention centre, which is getting ready to house up to 3,000 migrant teenagers”

-Biden admin weighs flying migrants to Canadian border amid …nypost.com › 2021/03/19 › biden-admin-weighs-flying…
5 days ago — The Biden administration is considering flying migrants who illegally cross the US-Mexico border to near the US-Canada border for processing as a way to ease …
……..

Hum what timing. Supply lines CUT.

https://www.zerohedge.com/energy/megaship-blocks-all-traffic-suez-canal-after-running-aground-bizarre-incident

#2 Commie Free Zone on 03.24.21 at 1:41 pm

Thankfully we haven’t been infiltrated by too many of these commie is a commie is a commie dudettes…..

#3 Bartman on 03.24.21 at 1:44 pm

Is it time to start thinking about extremes in the markets yet?

#4 Immigrant man on 03.24.21 at 1:47 pm

Average people with average incomes and lacking real estate now must understand they’ll never own a house in a major market.
———————
Amen! The Canada you knew is gone.

#5 KLNR on 03.24.21 at 1:53 pm

hmm, figured the POX party would win in a landslide.
Guess theres still a few obstinate conservatives out there.

#6 Inequity on 03.24.21 at 1:53 pm

Interesting results from the poll.

Some observations… I thought the general opinion of most on this blog would keep out more of the NDPs/Greens.

I thought “Other” was spelled “Mad Max”.

#7 Reade Barber on 03.24.21 at 1:56 pm

Wow so this Blog really is dominated by PC party supporters. I’m not surprised.

#8 Sponge on 03.24.21 at 2:00 pm

Lol ….44.2% Conservative? This survey doesn’t represent the majority of voting public.. sorry

#9 S.Bby on 03.24.21 at 2:01 pm

Average people with average incomes and lacking real estate now must understand they’ll never own a house in a major market

and it’s been that way for a decade now…

#10 Polozi Scheme on 03.24.21 at 2:15 pm

Wow from your survey results obviously you have a very large Baby Boomer audience!

#11 Philio on 03.24.21 at 2:16 pm

CONS, seriously?
Oh gad.
I mean, I think answer #2 said it all – Trudeau’s a piece of work alright. But O’Tool, really? No better than a weathervane… Better the Devil You Know…

#12 Leftover on 03.24.21 at 2:16 pm

Meanwhile in Utopia (New Zealand), where there is no capital gains tax on anything, they just increased the “bright line” for investor-owned property to 10 years.

What this means is if you sell before the 10-year mark any profit is taxed as income. Yes, income. Same rate as you pay as a worker bee, 33% above $70,000.

https://www.newzealandnow.govt.nz/living-in-nz/money-tax/nz-tax-system#:~:text=New%20Zealand's%20personal%20income%20tax,for%20income%20up%20to%20%2414%2C000).

#13 Ryan on 03.24.21 at 2:19 pm

Garth, been reading for years. We are balanced, diversified, married with a kid and almost 40. $500K in the bank, TSFA’s, RRSP’s and even $20k in 1 year olds RESP, (cause compounding will hopefully help) and 2 DB pensions. But all of this is crazy. We know most people don’t have savings like us. But honestly, we don’t feel wealthy at all or even secure. House rentals in Ottawa are approaching $4K/mth and to buy, even the suburbs are $1.2M. Starting to seriously consider commuting two pensions and look stateside, I don’t know how one is suppose to be able to afford this country. Heck we drive a used car (no Audi). Here is my question for you that I hope you can address. Since many of us will be renters for life, how does one save for knowing they will have to shoulder Rent through retirement? As we know rents will climb post COVID.

#14 ogdoad on 03.24.21 at 2:20 pm

This will be the roaring 20’s all right! Especially with 413 in the cross-hairs. More sprawing fields of houses. More building and investment. Container ships. Consumption.

Wait. Wasn’t there something about some climate a while ago? Doesn’t matter…

-Og

https://www.youtube.com/watch?v=jEP224Sa4Rw

#15 Madcat on 03.24.21 at 2:27 pm

Called a Realtor about a commercial listing in a small sleepy town on the island. The property has only been listed for a few weeks. There’s already an accepted offer and when I asked her to call me if the deal collapsed she said she’d ‘put me on the list’… Lol!

Jeez! This market is a hot mess!

#16 Linley on 03.24.21 at 2:28 pm

I’m afraid… very afraid…

#17 Roial1 on 03.24.21 at 2:29 pm

About question #3. In actual use this has found to be the absolute opposite of the “kills incentive” idea.
The right conditions it allowed those who had little or no financial support to get a start on improving themselves. An led to more well trained workers with the human pride to get themselves off of the “Dole”

Your conclusion that is “hinders incentive” is wrong.
A normal “Conservative” idea.
Try to think “outside” of your box.

#18 jal on 03.24.21 at 2:29 pm

We have “Universal Basic Income” (UBI), full of holes.

eg. Taxation, corporate welfare, pensions, social services, wages for pretend work, income without work, wasteful and useless work.

Also, covid has demonstrated the many non-essential activities.

#19 VGRO and chill on 03.24.21 at 2:31 pm

The kids are very upset.

https://www.canadahousingcrisis.com/

#20 LARRY APP on 03.24.21 at 2:32 pm

Soooo… Conservative landslide next time around?

#21 Zed on 03.24.21 at 2:36 pm

Our PM is a canadian like any other canadian; no fear on taking on more debt to inflate his lifestyle since debt will disappear on its own, apparently.

This spending spree cannot end well.

#22 Inequity on 03.24.21 at 2:37 pm

#8 Sponge

Of course this blog does not represent the majority of the voting public. This blog talks about things like financial responsibility…. and the voting public is more aligned with free government cash.

#23 Newbie on 03.24.21 at 2:38 pm

Millenials are having families, and want houses. That’s the driver here. Low interest rates have “pulled forward” demand. Covid has reduced the amount of sellers. More demand, less supply = prices going up.

This idea that WFH suddenly made everybody make a life changing decisions, regardless of their overall life change is ridiculous. How many single folks are buying houses in the suburbs and small towns?

Condos emptied because low earners in the hospitality and tourism industry could no longer afford rent and went back to live with mom and dad until the end of Covid. Once we’re vaccinated, and restaurants and airlines are back to capacity, those condos will fill back up. It won’t be the families though. They’re willing to commute for the sake of the house. And might be willing to get a new job closer to home too…

#24 Dan in Nanaimo on 03.24.21 at 2:43 pm

Hard Lesson nr. 1: Your MOTIVATION is now being directed by the Continuous & Infinite Printing Press Company (acronym C & I PPC : just like an old-time railroad venture)

Hard Lesson nr. 2: The FUTURE is NOW (in abstract terms, the really is no future)

C & I PPC: We are here to help.

Me: Will your policies negatively affect my investments, entitlements, and taxes in the future?

C & I PPC: You needn’t waste valuable energy thinking about this because it’s not important.

Me: Well then, can you tell me if the combined fiscal + monetary stimulus as a percentage of nominal GDP is something we should be concerned about?

C & I PPC: Nope. Not a chance. Absolutely not!

…intermezzo…

C & I PPC: Party on !

#25 Repurchase Disagreement on 03.24.21 at 2:50 pm

#17

I agree that for some a solid basic amount of financial security can make a huge difference and help launch them, so to speak. The problem with UBI is the Universal part. Not everyone needs it and not everyone will benefit from it. There will be downside and a lot of unintended consequences.

Take out the Universal part and I’m willing to have a conversation about how to target support to those people who will benefit from the hand up. I believe true Conservativism wants to see everyone succeed.

#26 Dr V on 03.24.21 at 2:54 pm

8 Sponge – the libs lost 6% of the popular vote in the
last election, slipping behind the cons. I cannot
think of a reason why that trend would not continue.
Well, maybe one.

#27 A Dollar is a Dollar is a Dollar on 03.24.21 at 2:58 pm

Hmm, so the steerage readership is probably about 85% Conservative-leaning based on this poll. 4X more Cons than Libs.

Way, way outta touch with Canadian public sentiments and reality.

Sorry, just a fact. Garth is a pretty balanced fellow politically.

But this comments section is mostly an extreme-right echo chamber.

No wonder so many dolts here want to attack me, LOL.

#28 Dogman01 on 03.24.21 at 3:00 pm

Communism – the theme park.

I work at a place that is obligated to “follow all the rules”. The Health inspectors show up from time to time as this place is prominent in the community. Each Health inspector interprets rules a bit differently but as our management asks difficult clarifying questions the least flexible most literal interpretation of the ever changing miss understood Covid rules are applied.

I have to imagine the results are what the Soviet Era GUM department stores were like. Little of it makes sense, and little can be tired to reducing virus spread. Procedures it requires are extremely inefficient. Neither Fit for Use nor Fit for Purpose.

The staff once an engaged, energetic, conscientious team are now confused, despondent and fatalistic.

This is what centralized, distant big government control feels like. It is remarkable the fundamental effect it has on people.

#29 Habitt on 03.24.21 at 3:02 pm

Recap 1- houses prices will correct downwards 2- Interest rates will go up 3- WFH temporary. Got it. How’s it working out so far? Enough said. Love the blog and our host laying it out there every day. Thank you sir

#30 Dogman01 on 03.24.21 at 3:14 pm

#152 Alphonse Kehaulic on 03.23.21 at 8:51 pm
“All a sideshow to distract from the fact that your way of life, like the way of life in other First Whirled Countries, is being dismantled in baby steps.”

——————————————-
Incrementalism is pretty powerful, a 50 year “take-down” of healthy and independent middle class society.

#195 Dharma Bum on 03.24.21 at 9:35 am

“Billions of people will finally realize that the last century of prosperity due to the trickle down effects of economic growth and technological innovation was merely a blip on the screen of time, creating a temporary illusion of hope.”

——————————————–
They are also in the process of destroying any unique cultures especially those that value individual freedom, creating a “grey-goo” human society, post national state. Not a culture but instead just an economy of dependent, divided , precarious and easy to manipulate proles.

This being a revision to the normal state of Human societies, a small wealthy establishment and a great mass of powerless serfs. Once medical enhancement miracles become available in the next 50 years, the wealthy will move so much further ahead we will enter a dystopian nightmare

#31 Ponzius Pilatus on 03.24.21 at 3:16 pm

4 hours commuting a day?
Will happen soon.
80,000 New York City employees being called back:
——
The new policy in New York, which will be rolled out in phases over several weeks, will affect about 80,000 employees who have been working remotely, including caseworkers, computer specialists and clerical associates. The rest of the city’s roughly 300,000-person work force, many of them uniformed personnel including police officers, firefighters and sanitation workers, have already been reporting to work sites.

#32 Don Guillermo on 03.24.21 at 3:19 pm

#21 Zed on 03.24.21 at 2:36 pm
Our PM is a canadian like any other canadian; no fear on taking on more debt to inflate his lifestyle since debt will disappear on its own, apparently.

This spending spree cannot end well.
±+++++++++++
Socks will take on no personal debt. He and his family will skip through this wealthier than ever. His children and grandchildren will not have to worry about all this debt. Everyone elses will though.

#33 Sail Away on 03.24.21 at 3:19 pm

Why would anyone choose to stay and play in an unfriendly environment? Meaning: who, with options, would ever choose to hamstring their future at these prices?

Our kids are probably 5-10 years away from home ownership, and there is no way we would recommend they buy here when the entire US beckons with higher wages and far better RE value.

In the end it comes down, as usual, to choices. Be adaptable and hunt where the game lives, not where you’re comfortable.

#34 IHCTD9 on 03.24.21 at 3:22 pm

Look at the bright side. After Trudeau finishes off his next majority and has extinguished the last flickers of hope which still warmed the hearts of Canadians – there will be absolutely no questions about who to point the finger at for our sorry state come 2025.

No one is going to point at Harper’s policies and actions from waaaaaaay back in 2014 as a reason for our massive issues in 2025. They’d just look like a horse’s ass going back that far.

No one is that stupid right?

#35 Ponzius Pilatus on 03.24.21 at 3:23 pm

PoxParty.
Haha.
Turner Nation could be the leader.
He’s a natural politician. Never says anything of substance.
I’m still undecided.
Could be tempted, if a pony comes into play.

#36 Jerry on 03.24.21 at 3:28 pm

I’ve seen a lot of frightening things on the site but this is the first paralyzing horror:

Almost 20% of people who have enough nous to fill in a form also believe there is a “right” to a UBI.

Are there that many whack jobs out there?

#37 But ... on 03.24.21 at 3:28 pm

we have been here before and it all came crashing back to “normal.” With a vengeance. Different circumstances but still … never say never … I doubt if it is really different this time. We gonna see …

#38 Ponzius Pilatus on 03.24.21 at 3:31 pm

# 20LARRY APP on 03.24.21 at 2:32 pm
Soooo… Conservative landslide next time around?
——————
Sure, with 3124 votes.
Could be a Trumpish Landslide.
But teaming up with the PozParty could do it.

#39 45north on 03.24.21 at 3:33 pm

giving it up

So what’s going on here? It’s all about the race to be middle class. It’s ironic, as the middle class makes greater and greater efforts to achieve middle class, it’s becoming more and more elusive. The price of middle class houses has just risen beyond the means of the middle class. The commuting distance has just increased to the point where they cannot get to work. So I would argue we’re giving up middle class.

Is there an alternative? If the middle class stuck to their means, they wouldn’t bid up the price of houses and the price would go down. If they moved into multi-unit buildings, the price per unit would go down, more and better multi-unit buildings would be built, transportation infrastructure would be built to accommodate them and it would be more energy efficient.

And it’s not as if the middle class is making these insane dysfunctional purchases all by themselves. There is oversight. Such as the Federal Government, the provincial governments, CMHC, the Bank of Canada and the banks. They’re all insane.

#40 Bob on 03.24.21 at 3:35 pm

Typical. Pretty much everyone agrees that “something” must be done. Most agree it’s urgent. But when you ask about cutting their benefits or ask them to pay more, it’s “woah! Not so fast!” It seems that “something” means making someone else pay for it.

#41 Richard L on 03.24.21 at 3:36 pm

Instead of Other you may as well have just put PPC

Like him or not, Max is the only politician even mentioning fiscal responsibility.

#42 Comrade on 03.24.21 at 3:42 pm

I like the discrepancy between 1 and 4 on one side, and 5, 7 and 8 at the other. 1 and 4 majority of people are worried and want the deficit to be dealt with, then the questions about personal sacrifice gave a bit more balanced response.

Basically, yes we are worried and we should do something about the deficit, as long as it doesn’t affect me.

#43 Phil on 03.24.21 at 3:46 pm

13 Ryan on 03.24.21 at 2:19 pm

Garth, been reading for years. We are balanced, diversified, married with a kid and almost 40. $500K in the bank, TSFA’s, RRSP’s and even $20k in 1 year olds RESP, (cause compounding will hopefully help) and 2 DB pensions. But all of this is crazy. We know most people don’t have savings like us. But honestly, we don’t feel wealthy at all or even secure.
——————————————————-
Don’t worry Ryan, although no-one can predict the exact time (right Garth?) it definitely will correct (or worse).
You are wealthy.
The houses are financed; the debt will need servicing.
It has happened before and it is not different this time…debt is debt and it will cause many people to be impoverished for many years.
Your time will come!

#44 Flop... on 03.24.21 at 3:48 pm

The Conservative Party is about as stable at the moment as a 3 legged stool.

Could have had Peter MacKay and a sturdy stool.

Ended up with Erin O’Toole and a wonky stool…

M46BC

#45 KLNR on 03.24.21 at 3:50 pm

@#22 Inequity on 03.24.21 at 2:37 pm
#8 Sponge

Of course this blog does not represent the majority of the voting public. This blog talks about things like financial responsibility…. and the voting public is more aligned with free government cash.

well, to be fair the blog itself espouses financial responsibility but the denizens in the comments section mostly espouse how great they think they are :)

#46 The West on 03.24.21 at 3:51 pm

I love the polls Garth!

Based on your viewership (the last poll you did) – there is only one surprising result (#9).

Also, “Craven” is an under utilized word in today’s world!

After us, the deluge!

#47 KLNR on 03.24.21 at 3:51 pm

@#42 Comrade on 03.24.21 at 3:42 pm
I like the discrepancy between 1 and 4 on one side, and 5, 7 and 8 at the other. 1 and 4 majority of people are worried and want the deficit to be dealt with, then the questions about personal sacrifice gave a bit more balanced response.

Basically, yes we are worried and we should do something about the deficit, as long as it doesn’t affect me.

Bingo.
Amusing to say the least.

#48 FreeBird on 03.24.21 at 3:52 pm

Cottage rentals in Peterborough/Kawartha Lakes area is CRAZY. A few weeks ago avg mobile homes rented for ~$300/day and cottages far more. Hard to find either now in the area and parks booking up fast (some prebooked last year.) Also a lot more high end cars in store parking lots. Not to worry you can still rent this for ~$2500 a week. Patio lights extra…

https://ca.outdoorsy.com/rv-rental/douro-dummer_on_ca/2004_gulf-stream_b-touring-cruiser_197637-listing

#49 Ryan on 03.24.21 at 3:53 pm

Phil on 03.24.21 at 3:46 pm
Don’t worry Ryan, although no-one can predict the exact time (right Garth?) it definitely will correct (or worse).
You are wealthy.
The houses are financed; the debt will need servicing.
It has happened before and it is not different this time…debt is debt and it will cause many people to be impoverished for many years.
Your time will come!
—————————————————————-

I’ll take health over wealth any day. I’m sure we’ll be fine, but frustrated. Others will suffer. I’ve still got 5 years before a school district matters. We’ll keep saving/investing. I already know we’ll need about $4M to replace about 80% of our income. Can’t believe I type that number without blinking…… But these surveys of people thinking they will retire on $700k for 30 years are out too lunch!

#50 Swanson on 03.24.21 at 4:00 pm

The poll results are hardly surprising, given the blog dogs’ demographics. Except maybe with the 43% support for a tax on the wealthy.

#51 Leo Trollstoy on 03.24.21 at 4:00 pm

Was I the only one who selected that they were gonna vote Liberal?

#52 Km on 03.24.21 at 4:02 pm

I have never been interested in weed stocks however with the daily barage of nutter comments from Turner Nation I would like to ask what brand he smokes because clearly it is strong stuff. Also what brand aluminum hat do you wear as it seems to not be working to stop the voices so I would like to stay clear of that as well.

#53 Oleg on 03.24.21 at 4:05 pm

No way Mr Socks and fiscal loosy Freeland are going to overlook taxes on primary residences. All the couch cushions will be flipped to find some nickels.

It’s that or a debt jubilee.
Whichever road they take at this point there is pain ahead.

#54 Dave on 03.24.21 at 4:08 pm

Garth keeps saying Chinese dudes didn’t inflate the market and he knows this is crap. All the offshore money that started coming here in the 90s has inflated the market. There is no other explanation for a two bedroom condo costing 800K when the median salary is 60K

Sure. Everyone in Guangdong wants a concrete box in Surrey. Right. – Garth

#55 Damifino on 03.24.21 at 4:10 pm

#41 Richard L

Like him or not, Max is the only politician even mentioning fiscal responsibility.
——————————

Not to mention the only one to put climate change into perspective, as well as Canada’s impotence to effect it regardless. Mad Max is profoundly un-electable.

#56 Dave on 03.24.21 at 4:18 pm

” A Dollar is a Dollar is a Dollar”

I agree and it is astounding that Garth constantly denies foreign money influence in housing when there is no other way to explain it, even though organizations outside of Canada cite foreign speculation as a driver of our unsustainable housing market. Thanks to Harper, there were over 30,000 millionaires from Hong Kong in the Lower Mainland back in the 90’s, mainly under the Immigrant Investor sham. Instead of producing jobs and building companies, many just bought real estate and thus goosed the market.

#57 binky barnes on 03.24.21 at 4:20 pm

The PM PM (aka Mr. Justin Trudeau) has your back folks. He is thinking, deliberating, considering, contemplating, brainstorming and even consulting with other ‘brainiacs’ in order to solve this housing dilemma (and all of the nation’s other ills). We are lucky to have the PM PM.

BB

#58 Stone on 03.24.21 at 4:20 pm

#44 Flop… on 03.24.21 at 3:48 pm
The Conservative Party is about as stable at the moment as a 3 legged stool.

Could have had Peter MacKay and a sturdy stool.

Ended up with Erin O’Toole and a wonky stool…

M46BC

———

Are you talking about a piece of furniture…or a bowel movement?

#59 Guelph Guru on 03.24.21 at 4:28 pm

While we fret over building wooden castles to sell to each other to achieve a sense of fake prosperity, the world seems to be trying to move away from the USD. This caught my attention. May be old news, but I saw it for the first time:

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

China seems to lead this front. No wonder US is on a printing spree. The dollar should soon loose value faster than we saw Trump fade from news after his presidency.
Don’t know how important this stuff is, but sent my spidey sense on high alert.

#60 Stone on 03.24.21 at 4:29 pm

#12 Leftover on 03.24.21 at 2:16 pm
Meanwhile in Utopia (New Zealand), where there is no capital gains tax on anything, they just increased the “bright line” for investor-owned property to 10 years.

What this means is if you sell before the 10-year mark any profit is taxed as income. Yes, income. Same rate as you pay as a worker bee, 33% above $70,000.

https://www.newzealandnow.govt.nz/living-in-nz/money-tax/nz-tax-system#:~:text=New%20Zealand's%20personal%20income%20tax,for%20income%20up%20to%20%2414%2C000).

———

Your link doesn’t seem to indicate what you’ve outlined (or I just don’t see it) however these do:

https://www.bloomberg.com/news/articles/2021-03-22/new-zealand-targets-speculators-in-new-assault-on-house-prices

https://betterdwelling.com/new-zealand-curbs-property-investment-tax-advantage-wants-productive-investment/

New Zealand sounds more and more attractive. Imagine not paying capital gains tax and controls in place to curb real estate speculation. How much more of the gains from a balanced and diversified portfolio could I keep versus handing over for taxes? It makes an 8.07% return ytd on a balanced and diversified portfolio even more attractive. Maybe moving there is the New Canada.

#61 Paul on 03.24.21 at 4:30 pm

So he starts reading the budget by talking about Covid safety then proceeds to lick his fingers as he turns the pages.
Lol

#62 Dr V on 03.24.21 at 4:30 pm

25 Repurchase

“Take out the Universal part and I’m willing to have a
conversation about how to target support to those
people who will benefit from the hand up.”

But that is the incentive killer and the messy system we have now.

A UBI would have to be implemented from an economic standpoint and probably reverse engineered from existing benefit programs and taxation levels. Once a certain income level is reached, the benefit is completely taxed back.

Remember the ‘typical’ family of 4 (or 5?) that made
something like $80k but paid no net tax? That is reasonable starting point in that they would have no net change between the existing system and UBI.

#63 ogdoad on 03.24.21 at 4:38 pm

BTW,

Stupid question, as you have prb. already said, but what is the ends to these polls? Do you make money?

5000 is a very good sample number to represent the most. With the amount of peeps that visit this blog I’m sure polls could be a lucrative prop.

Doesn’t really matter, I guess. WOuld afford a nice single malt :)

Og

This site is completely non-commercial. More like a homeless shelter than a blog, actually. – Garth

#64 Flop... on 03.24.21 at 4:41 pm

#58 Stone on 03.24.21 at 4:20 pm
#44 Flop… on 03.24.21 at 3:48 pm
The Conservative Party is about as stable at the moment as a 3 legged stool.

Could have had Peter MacKay and a sturdy stool.

Ended up with Erin O’Toole and a wonky stool…

M46BC

———

Are you talking about a piece of furniture…or a bowel movement?

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

Could make for an interesting Throne Speech…

M46BC

#65 Dolce Vita on 03.24.21 at 4:43 pm

Pox. I like that word.

What every fashionable Doctor is wearing in Italia these days when off work:

https://i.imgur.com/ySb6fRk.png

—————————

I saw that Toni Gravelle talk. Bank going to lower amount of Gov Bonds they purchase over time which will put a cramp on Trudeau’s spending plans.

The dates and hikes you talk about gradual which is prudent. Gravelle says plenty of liquidity out there.

Means mortgage rates will increase. How much? How fast? Who know but Gravelle said this:

…BoC will start lowering bond purchases in April.

—————————

The Variants had a field day yesterday in Canada, new variant cases:

Mar. 18 227
Mar. 19 259
Mar. 20 212
Mar. 21 184
Mar. 22 331
Mar. 23 726 <—

Hopefully a 1 day thing, anomaly.

+676% cumulative cases in the past 31 days. Still trending near linear, NOWHERE near exponential.

——————

– India found a double Covid mutant, like 1 wasn't bad enough:
https://www.bbc.com/news/world-asia-india-56507988

– EU WILL curb Vax Exports for 6 weeks ala Vax Hog UK, USA.
https://www.nytimes.com/2021/03/23/world/europe/eu-curbs-vaccine-exports.html

Feb EU Vax stats:

100M doses
70M to EU
30M Exported to 33 countries
10M to Vax Hog UK (EU got 0 doses in return from export controls UK in Feb)
Canada after UK, 2nd largest recipient

Will let you know if Canada is going to be broadsided by this. Cdn Officials say they won't be…ya, just like early this year they weren't by Pfizer.

– Brazil: A record 3,158 deaths were registered on Tuesday, as well as 84,996 new infections in Brazil…Bolsonaro says people will soon lead 'normal lives'.

Nutter.

—————-
PS:

For the Classical, a Roman Empire Latin sing along by a bunch of predominantly Poles and Germans serving in Legio XXI Rapax, with subtitles, for the "Glory of the Empire":

https://www.youtube.com/watch?v=MeGYVGqCV3M

Other Roman Empire Legion stationed in Trieste Latin sing along, no subtitles but beautiful Baroque Trieste as a backdrop, Legio I Italica a TERGESTE:

https://www.youtube.com/watch?v=tgHv7RjAsf8

———–

Yup, just another Covid19 und Variants day on Planet Earth.

#66 willworkforpickles on 03.24.21 at 4:44 pm

The biggest fear driving FOMO now could very well be FOHR (fear of higher rent) Being priced out of the housing market and left to the mercy of LL’s escalating rent increases moving ahead. Unless a PC government gets in and imposes new rent restraint restrictions, but that’s a stretch currently.

#67 Dr V on 03.24.21 at 4:45 pm

233 Tina

“We pay income taxes on CPP, OAS pensions so why
should they not be paying income taxes on CTB, GIS.”

Tina – If you collect OAS and max CPP at 65 then with the pension tax and age credit you should get that money tax free – approx. $21k/yr. GIS is meant to fill in a shortfall at or below that level so no tax either.

Now take that $200k you saved n a joint non-registered and buy Canadian dividend payers. Let’s say
4% so $8k/yr. Guess what? Tax free if total income
less than $49k.

Now add your TFSA which if you have maxed, even at conservative levels is now $100k. Find a balanced fund
at 4% another $4k/yr. Add in life partners similar pensions and you are at $58k per year tax free. The high life in your local trailer park.

Just watch for blogger 3D. He wants your money.

#68 Adios Canada on 03.24.21 at 4:48 pm

We sold our townhouse in Barrie back in September 2020. Had it for 4 years and the return was incredible. I thought only an idiot would not cash in this lotto ticket.
My wife is Mexican, so now we live in Mexico. (The central better part, Mexico is not only beaches)
My thought is that there has to be a ton of mixed marriages in Canada.
Why not sell, invest the proceeds and go back to the promise land where you could rent a Mansion for $1,300 a month?
By the way whatever the lame stream media says, I say Mexico is safe, and the government doesn’t blow money like drunken sailors.

#69 Kevin on 03.24.21 at 4:50 pm

The POX party is the best party!!

Give me the Chretien/Martin Liberals, not these ones. I’m surprised with the votes for the Conservatives; I can’t vote for a party that doesn’t recognize Climate Change, no matter what the dear leader says.

#70 Another Deckchair on 03.24.21 at 4:51 pm

Hey Sponge;

“Lol ….44.2% Conservative? This survey doesn’t represent the majority of voting public.. sorry

Look at the votes cast at the last election – the conservatives got about a million more votes than the liberals.

(but the libs won because of the way votes were applied to seats. Surprised me, too how it went)

So, I think the poll represents “reality” more than you think.

#71 John Hosman on 03.24.21 at 4:52 pm

Why not tax breaks for renters based on housing market appreciation. Seems that would sort of level the field and make one thing twice about buying

#72 Tbone on 03.24.21 at 4:54 pm

Never ask a liberal with no money if we should raise taxes

#73 The Totally Unbiased, Highly Intelligent, Rational Observer on 03.24.21 at 4:55 pm

Erin O’Toole basically fibbed when he said that he was a True Blue Conservative. Of course, he just said that to try to attract the support of True Blue Conservatives. In fact, Erin O’Toole supports such things as abortion, the LGBTQ agenda, and the Paris Climate Accord. He is not even a Pale Blue Conservative. No True Blue Conservative could ever support him or vote for him, and some have already openly said so. Many True Blue Conservatives who are naturally repulsed by the thought of Justin Trudeau and the Liberal Party of Globalist Traitors trying to destroy Canada from within, and who are repulsed by the thought of the so-called Conservative Party of Canada having become a Liberal Lite Party, are also repulsed by the thought of groups like Wexit Canada trying to break up the country. So, True Blue Conservatives will look for alternatives, and might turn to Maxime Bernier and his People’s Party of Canada, or start a new party.

Some people whine and argue that the People’s Party of Canada, or a new party, cannot possibly win and that therefore it is a waste of a vote to support it. However, the so-called Conservative Party of Canada cannot win either. Not only is Erin O’Toole unsupportable by True Blue Conservatives, but Prime Minister Justin Trudeau and the Liberal Party of Globalist Traitors have already spent hundreds of billions of dollars of other people’s money, that nobody has, to buy up most of the votes.

Consider all the well-known facts. Those who support pure evil and the destruction of Canada can simply vote for Justin Trudeau and the Liberal Party of Globalist Traitors. There is no reason for such people to vote for a Liberal Lite Party like the so-called Conservative Party of Canada, which falsely claims to be run by a True Blue Conservative even though everyone knows very well that it is run now by a Liberal Lite leader. Not only will True Blue Conservatives not vote for the so-called Conservative Party of Canada, but no left-wing loonies will vote for it either, even though it feels forced to adopt more and more Liberal policies all the time. The left-wing loonies can simply vote for Real Liberals and all their crimes, sins, abominations, and, best of all, handouts like CERB and, hopefully, UBI.

Prime Minister Justin Trudeau might be doing much evil and destroying Canada, but he seems to believe enthusiastically in what he is doing. By comparison, the so-called Conservative Party of Canada seems to be run by typical politicians who do not really believe in, or stand up for, anything other than desperately trying to get elected.

Vote for Max, elect Justin! – Garth

#74 DigDeep on 03.24.21 at 4:57 pm

I am a blue collar surveyor at a large construction company in our nation’s capital. We haven’t missed a day of work during Covid. We are “essential”.

Yes we are.

We are essentially building very large things with borrowed money. We make a great wage. We have to. so we can pay for the stuff we are building.

Existential is more like it.

And yes, what a crisis it will be.

#75 Dolce Vita on 03.24.21 at 4:59 pm

Sorry Classical people, almost forgot that the Northern Gauls hosted a Roman Legion jamboree, military review in Citadelle de Namur – many Legions from throughout the Empire participated:

https://www.youtube.com/watch?v=C9LxZ9-_qwg

For the Glory of the Empire.

Gauls very serious about their Roman Legions.

——————

A return to “normal”?

#76 ElGatoNerodeYVR on 03.24.21 at 4:59 pm

#49 Ryan on 03.24.21 at 3:53 pm
But these surveys of people thinking they will retire on $700k for 30 years are out too lunch!
=========================
You may want to look at your spending and extrapolate for retirement being real.
700K per person in a superconservative portfolio at 5% will return 35K a year . That , with a paid mortgage is plenty to live on and travel reasonably while saving the CPP & OAS for inflation hedging.
If you were thinking 700k per family, yeah ,that would be though, still doable with max CPP & OAS each. Definitely more modest with less travel.
So really 700k in today’s money per person is quite enough if you have a paid house and drive sparsely.
Budgeting is a wonderful thing ,and right after is forecasting 5,10,15,20 30 years out. Not that the forecast will ever be exact ,but because it will be directionally correct.
Canada.ca has a wonderful estimate on CPP payments .
4 mil, 30 years from now is basically 2 mil today ( at 2% inflation) so I can see how for a couple on the mid-high side of lifestyle that would be the number to hit.
Best wishes.

#77 willworkforpickles on 03.24.21 at 4:59 pm

#53 Oleg
Regarding a debt jubilee …there can be/will be no such thing in this age…(North America anyway).

#78 KLNR on 03.24.21 at 5:00 pm

@#12 Leftover on 03.24.21 at 2:16 pm
Meanwhile in Utopia (New Zealand), where there is no capital gains tax on anything, they just increased the “bright line” for investor-owned property to 10 years.

What this means is if you sell before the 10-year mark any profit is taxed as income. Yes, income. Same rate as you pay as a worker bee, 33% above $70,000.

probably not going to help the average joe though.
investors generally hold their props for awhile.

https://www.theguardian.com/world/2021/mar/20/can-you-help-me-the-quiet-desperation-of-new-zealands-housing-crisis

#79 gfd on 03.24.21 at 5:00 pm

Canada’s Housing Market: Five things to know from a possible slowdown to bidding wars on campers.

https://ca.movies.yahoo.com/canadas-housing-market-five-things-to-know-from-a-possible-slowdown-to-bidding-wars-on-campers-153613780.html

#80 Dr V on 03.24.21 at 5:14 pm

60 stone – from the link, it is only NZ investments that are free of cap gains tax. Foreign investments are not. That’s a pretty small pool.

#81 Stone on 03.24.21 at 5:14 pm

#13 Ryan on 03.24.21 at 2:19 pm
Garth, been reading for years. We are balanced, diversified, married with a kid and almost 40. $500K in the bank, TSFA’s, RRSP’s and even $20k in 1 year olds RESP, (cause compounding will hopefully help) and 2 DB pensions. But all of this is crazy. We know most people don’t have savings like us. But honestly, we don’t feel wealthy at all or even secure.

———

I feel disturbed by the above comment. I’m not actually looking to offend here, Ryan, but you and your partner are not wealthy. Good for both of you to accumulate $500,000 but that’s $250,000 for each of you. At nearly 40. If by mishap you both divorced and went your separate ways, that’s not a very secure financial situation (better than most but still, yikes), especially when you believe you need $4 million to retire. That’s $2 million for each of you. And to replace 80% of your income? That sounds like at least a $200,000 income when considering a 4% withdrawal rate. If that’s the case, it sounds like your savings rate is low. Where’s the disposable income going?

I had almost $1 million at 40, alone. At that time, I didn’t even make a 6 figure income. Is the above story hopium fumes? It’s quite possible my viewpoint is offside. I’m just stumped.

How much should a person or a couple have at almost 40? I’m really curious. Even at $250,000 single/$500,000 couple, it seems low.

#82 IHCTD9 on 03.24.21 at 5:21 pm

#56 Dave on 03.24.21 at 4:18 pm

Thanks to Harper, there were over 30,000 millionaires from Hong Kong in the Lower Mainland back in the 90’s, mainly under the Immigrant Investor sham.
———

Guess who wasn’t PM in the 90’s?

Guess who actually ended the IIP “sham”?

#83 Luca on 03.24.21 at 5:24 pm

CB will start to raise rates soon?? Hahah that’s funny Garth. Too funny. They can try but they won’t be raising rates ever again. New world order.

#84 VGRO and chill on 03.24.21 at 5:26 pm

#33 Sail Away on 03.24.21 at 3:19 pm
Why would anyone choose to stay and play in an unfriendly environment? Meaning: who, with options, would ever choose to hamstring their future at these prices?

Our kids are probably 5-10 years away from home ownership, and there is no way we would recommend they buy here when the entire US beckons with higher wages and far better RE value.

In the end it comes down, as usual, to choices. Be adaptable and hunt where the game lives, not where you’re comfortable.

———–

Yeah, the USA is such a great place..

https://www.vox.com/health-care/2018/10/4/17936626/leon-lederman-nobel-prize-medical-bills

#85 Bloff Witzer You're in the sitatation cloakroom on 03.24.21 at 5:27 pm

I bet if you gave all of these polls you have done to some place that could assess what they mean text in total, the answer would be your respondents are lying. Maybe to themselves but they’re lying. Either that or all those folks that claim they have such high incomes didn’t answer this one.
#3 interesting thing is every test that’s been done did not produce the results that response would indicate. It was actually the opposite. In Stockton, Ca. where they gave a group of people $500 a month most worked more than previously and improved their quality of life pretty vastly for that small amount. The one Ford cancelled seemed to be showing similar results. Even way back when in Manitoba it was positive results from the test program.

#86 IHCTD9 on 03.24.21 at 5:31 pm

#81 Stone on 03.24.21 at 5:14 pm
#13 Ryan on 03.24.21 at 2:19 pm
Garth, been reading for years. We are balanced, diversified, married with a kid and almost 40. $500K in the bank, TSFA’s, RRSP’s and even $20k in 1 year olds RESP, (cause compounding will hopefully help) and 2 DB pensions. But all of this is crazy. We know most people don’t have savings like us. But honestly, we don’t feel wealthy at all or even secure.

———

I feel disturbed by the above comment. I’m not actually looking to offend here, Ryan, but you and your partner are not wealthy.

—- – ——

500k at 40 and two DBP’s? They’ve got it made in the shade dinking lemonade.

Assuming they’re chucking 1k or so per month in there from here on in, their retirement income is virtually guaranteed to be north of 200k.

That is plenty imho. The cost of 2 people living under the same roof is hardly any more than it is for 1.

#87 Jake on 03.24.21 at 5:32 pm

Poll seems in line with blog participants mostly PCers… deficit control is a priority, ok to covid tax, no UBI, but no tax hike on us wealthy guys please.

#88 No Handle on 03.24.21 at 5:33 pm

I think income from investment properties should be more heavily taxed and we should go back to having a portion of rent income tax deductible to offset. Then if you got renters getting receipts and filing claims, it shines a light on all the landlords operating on the low. Gotta find a way to even it out for the young ones.

#89 Rosco on 03.24.21 at 5:36 pm

#73 Totally agree.
When I checked Other it meant I liked the Maxime Bernier.

#90 Sail Away on 03.24.21 at 5:38 pm

The poll is interesting, but nobody here can set policy. There may be some indirect effect via voting but pretty minimal and actions will definitely go another direction than anybody expects.

The question, really, is: what is everybody personally doing in reaction to this gigantic deficit?

My answer? Business as usual, but continued fabrication of the exit parachute. If needed, it’s in place. If not needed, then great.

Similar to investing you are always going to be caught by a crash since it just happens too fast. Understand this and accept that it’s unavoidable- your only protection is preparation. With a portfolio, that’s diversification and rebalancing.

If the country you live in is sending out warning signals, preparation needs to take this into account. In my case, preparation includes offshore corp, offshore accounts and dual citizenship. Hope for the best, plan for the worst.

#91 Dolce Vita on 03.24.21 at 5:38 pm

Yesterday not a stellar day for vax’ng in Canada, besides that the Variants had a field day.

125,338

doses administered. 798,048 doses on hand, unused. 2 days ago 143,649 doses administered. 2 days before that 164K doses. Going downhill.

At the above rate, Canada will 2 dose 32M Cdns ≥ 15 yrs old by:

July 12, 2022

If they would SINGLE dose everyone INSTEAD from now on in at todays abysmal rate, done by:

October 30, 2021

And if single doses only (no double doses) and let’s say 80% is the Herd Immunity number, Canada achieves that by:

September 16, 2021

——————-

But oh no, lets single AND double dose everyone.

A return to normal, wealth, prosperity and well being no reason to speed things up.

Incredible to me the BLUNDERS Gov Canada and the Provinces are making in vax’ng (not the Territories, they are doing great).

#92 NOSTRADAMUS on 03.24.21 at 5:42 pm

WHOOPI GOLDBERG!
I don’t know about you, but I need to know what Whoopi Goldberg thinks. Red lights are for losers, you’ve got to run them if your going to the next level. On a more serious note, daily the financial media reports that we are fast approaching an overheating economy. What garbage is this? The malls are still empty, small businesses are dropping like flies and no one is hiring full time. However, Real Estate is having their moment in time. Insanity, you are selling at the top and you will be buying at the top with a ton of added debt.” You may say I’m a dreamer, but I’m not the only one”. That is all I have to say on that, for now.

#93 IHCTD9 on 03.24.21 at 5:43 pm

#70 Another Deckchair on 03.24.21 at 4:51 pm
Hey Sponge;

“Lol ….44.2% Conservative? This survey doesn’t represent the majority of voting public.. sorry

Look at the votes cast at the last election – the conservatives got about a million more votes than the liberals.

(but the libs won because of the way votes were applied to seats. Surprised me, too how it went)

So, I think the poll represents “reality” more than you think.
— — –

Hence Trudeau’s reneging on his promise to change the FPTP system…

#94 Russ on 03.24.21 at 5:43 pm

Jake on 03.24.21 at 5:32 pm
Poll seems in line with blog participants mostly PCers… deficit control is a priority, ok to covid tax, no UBI, but no tax hike on us wealthy guys please.
====================

sounds good.

What is wrong with having poor people pay their fair share?

#95 Planetgoofy on 03.24.21 at 5:44 pm

#55 Damifino on 03.24.21 at 4:10 pm
#41 Richard L

Like him or not, Max is the only politician even mentioning fiscal responsibility.
——————————
Not to mention the only one to put climate change into perspective, as well as Canada’s impotence to effect it regardless. Mad Max is profoundly un-electable.
————————————————-
He warned that getting physical policies and the deficit in order BEFORE a crises hits. Nobody cares until the crap really flys. It will come.

#96 Ponzius Pilatus on 03.24.21 at 5:46 pm

#36 Jerry on 03.24.21 at 3:28 pm
I’ve seen a lot of frightening things on the site but this is the first paralyzing horror:

Almost 20% of people who have enough nous to fill in a form also believe there is a “right” to a UBI.

Are there that many whack jobs out there?
————–
It only took “one” determined “whack job” like Tommy Douglas to get us UHC.

#97 Doug t on 03.24.21 at 5:46 pm

“ If your not a liberal at 25, you have no heart – if your not a conservative at 40 you have no brain “

#98 AM in MN on 03.24.21 at 5:48 pm

#69 Kevin on 03.24.21 at 4:50 pm
The POX party is the best party!!

Give me the Chretien/Martin Liberals, not these ones. I’m surprised with the votes for the Conservatives; I can’t vote for a party that doesn’t recognize Climate Change, no matter what the dear leader says.

————————————————

Enjoy living in the stone age!

Perhaps try living for a week WITHOUT the following;

– Hydrocarbon based energy for transportation for yourself

– Anything, such as food, that was delivered by a means of transport using hydrocarbon based energy

– Heating of your house or place of work using hydrocarbon based energy sources.

– Anything made of steel, concrete or glass

– Plastics or fertilizers, or the foods or conveniences derived from them

– Electricity (basically in all forms since the enormous amount of hydrocarbon based energy that goes into the construction of all generating and transmission facilities)

– Paper and wood products, in their modern form

Enjoy your life, I won’t be joining you.

Perhaps if you’re looking for work after that you could become a lawyer for Climate Fraudster Michael Mann, inventor of the “hockey stick” graph. He lost his case in BC Supreme court against Dr. Tim Ball (a real climate scientist) and now refuses to pay the court ordered costs. Step by step he’s losing one against Mark Steyn in Washington, DC.

I realize where the polling is on the issue, but that’s only because it takes nothing to agree with the radical left, but the numbers drop like a rock when people are offered to pay real costs and lifestyle restraints.

If you walk in the lobby of Science World in Vancouver they have a display honouring Marconi for his work developing radios. One of his more famous quotes, “you don’t want to be right when everyone else is wrong…”

#99 Reximus on 03.24.21 at 5:53 pm

there’s more than just fomo out there, there’s also fear of selling out, and not wanting to get in line for some other place to live, which is why listings are so low…it’s not like other assets where you can sell without having to worry about what you’ll buy next, you gotta live somewhere

#100 Gen Z Investor on 03.24.21 at 5:53 pm

I’m surprised the ‘Great POX Party’ did not win, although I understand they may be the only party that isn’t looking to print enough paper money to give everyone in Africa some toilet paper, they are hardly better than the party of Mr. Socks.

As another commenter said, there are quite a few boomers here.

#101 Steve French on 03.24.21 at 5:59 pm

********THAR SHE BLOWS!**********

We’ve hit the red hot speculative blow off phase of this multi-decade property bubble!

Come on, what’s with the whinging?

This is spectacular and what we all came here for!

Is this blog not called the Greater Fool?

And have we not remembered what is the theory of the greater fool?

“In finance and economics, the greater fool theory states that the price of an asset is determined by whether you can sell it for a higher price, at a later point in time. On assets where the theory applies, it is implied that the asset’s intrinsic value is less important than the increase in demand, however irrational it might be. The person buying the overpriced asset later on, for a higher price, is deemed the greater fool.”

This is it folks!

The good rocket ship Canuckistan Property has gone parabolic, and when it runs out of gas it’s going to come crashing down to earth and it’s going to blow everything and everyone to smithereens.

Ahhhhh free market neoliberal capitalism.

Love it!

I’m watching through my binoculars at a safe distance and it’s a thoroughly entertaining sight!

#102 Reximus on 03.24.21 at 6:13 pm

so i played golf yesterday near cambridge, which was great! but the point is one of my partners has an ex-wife who moved into a condo she bought a couple of years ago when they split and has now decided she wants to move out there, and was hoping we would stop by a place she is looking at because it was very close to the course, which we did.
the house was in the preston area of cambridge and was well, pretty unremarkable, really only had one proper bedroom but listed at 499K which was in her price range. six months ago this so-so place would have been lucky to get that, according to the realtor she is working with….but now? well i just heard she offered 580K and hers was one of 12 bids and it went for 680K to a family from etobicoke.

#103 Earlybird on 03.24.21 at 6:23 pm

Maybe we could put effort into creating more advantages for renters…because clearly the economic advantages favor ownership…

#71 John Hosman That is a great idea! Incentivise renting to the point where one would reconsider home purchases.

#88 No handle….It would self-create a paper trail to the cash only landlords…and there is alot of them!! Another great idea…
I would vote for that…

#104 TurnerNation on 03.24.21 at 6:25 pm

#35 Ponzius Pilatus
– The mainstream news links I source for All my posts speak for themselves. It’s happening. And not going away.

#28 Dogman01 “The staff once an engaged, energetic, conscientious team are now confused, despondent and fatalistic.”

-You nailed it. Chaos is the goal. Shutting down small business is the only path toward public health apparently.

-Finland to extend shutdown of restaurants to April 18 (reuters.com)
– Germany: Angela Merkel backtracks on Easter lockdown after uproar (dw.com)

— They are already selling in the ‘news’/ predictive – always Chaos and permenantly. Just don’t call it a New World Order. Our Way of life must be ended. That is the goal.

-Pubs could require vaccine passports – Boris Johnson (bbc.co.uk)

-https://www.bloomberg.com/opinion/articles/2021-03-24/when-will-covid-end-we-must-start-planning-for-a-permanent-pandemic

————-

—Think 2023-25 and UBI? Don’t take my word for it.

https://nationalpost.com/news/canada/calls-to-extend-wage-subsidy-as-statistics-canada-reveals-extent-of-business-carnage-in-lockdown
Calls to extend wage subsidy as Statistics Canada reveals extent of business carnage in lockdown
More than 100,000 Canadian businesses closed their doors April 2020 alone, new government data Wednesday shows

…………………….
For a while I’ve opined that children unfairly are the main focus of this New System. Not the set-in-their-ways oldsters. And so.

https://torontosun.com/news/provincial/viral-immunologist-speaks-out-against-abusive-child-quarantine-policies
“Byram Bridle, an associate professor of viral immunology at the University of Guelph, fired off an open letter over the weekend to public health officials…
“I am a viral immunologist who conducts COVID-19 research, so I am speaking from an incredibly well-informed position,” the letter states. “I am also a parent. From both perspectives, these policies for children who have had a classmate test positive for COVID-19 are nothing short of abusive.””

#105 Steven Rowlandson on 03.24.21 at 6:37 pm

https://www.bnnbloomberg.ca/capital-gains-tax-and-sacred-cows-could-offset-hot-housing-rbc-1.1581775

#106 Ken on 03.24.21 at 6:39 pm

I am experiencing a crisis of my own. I starting making my own wine but am finding it difficult to keep up with demand…

#107 Cheese on 03.24.21 at 6:43 pm

It seems now there is no solution save one….

the power of incredible violence.

#108 X on 03.24.21 at 6:44 pm

Houses in my neighborhood (North York up about 20% since start of year. It’s crazy. No idea why some are spending the money they are. The more these sellers get, the more convinced I am of a does of reality coming to some. I truly hope their intent is not to flip, and that they do stay there long term, and don’t lose money.

#109 crowdedelevatorfartz on 03.24.21 at 6:46 pm

@#36 Jerry
“Almost 20% of people who have enough nous to fill in a form also believe there is a “right” to a UBI.
Are there that many whack jobs out there?”

++++

100% agreement…and if Little potato wins a majority….it will be endless social, equality, fairness for all indoctrination…

A nightmare for taxpayers.
Cant wait for Chrystia’s Freecash handouts on April 19th

#110 crowdedelevatorfartz on 03.24.21 at 6:49 pm

DELETED

#111 Nonplused on 03.24.21 at 6:50 pm

Question 10 is fairly revealing as to the demographic that reads this blog. Seems that Faron might be the only leftist.

I voted “pox” but would vote conservative if there isn’t a “A Pox On Them All Party” by the next election. I thus suspect support for the conservatives is understated in the polling numbers (by at least 1 anyway).

Now that O’Toole has self immolated it is hard to see how Trudeau won’t pounce and call an election shortly after releasing the “budget” and announcing all kinds of new goodies. (I put “budget” in parenthesis because I can’t bring myself to consider anything so out of whack a “budget”. It looks more like what someone planning suicide would do to their credit card in the months before hand.) Anyway it’ll be a complete waste of time and money because the results will be almost exactly the same as last time, with the possible exception that O’Toole might lose his seat.

It would be fun to organize a “Pox Party” to play the roll the Rhino Party used to, but I don’t think we have time. Basically a “None of the Above” party. It is a choice that is sadly missing on the ballot other than as represented by people who don’t vote.

#112 crowdedelevatorfartz on 03.24.21 at 6:52 pm

@#63 ogdoad
“Stupid question, as you have prb. already said, but what is the ends to these polls? Do you make money?”

++++

THIS blog is one of the last quiet places where we get excellent advice and aren’t slammed with ads…… go away.

#113 fishman on 03.24.21 at 6:54 pm

Whats the difference who gets in for western Canadians. Mickey Mouse, Donald Duck or Elmer Fudd. I vote because my father & uncles fought for King & Country in the last war & my Grandmother left a brother somewhere in the Ypres Salient mud in the first one. I can never not vote because of respect. That doesn’t mean I have to believe. Less painful with the Libs because their just fulfilling their manifest destiny by utilizing the western provinces as plunder. Voiceless lumpen proletariat endlessly tithing. With the Cons its the same, but with the added hurt of betrayal.

#114 crowdedelevatorfartz on 03.24.21 at 7:02 pm

@#81 Stone
“How much should a person or a couple have at almost 40? I’m really curious. Even at $250,000 single/$500,000 couple, it seems low.”

++++

Interesting questions.
I think they are fine if they keep socking cash into investments and keep the debt under control

At 30 I had zero in the bank/invested .
Pay cheque to pay cheque.
My brother gave me the Wealthy Barber.
A financial slap in the face.
By 40 I had $100k
By 50 I had 300k
I’ll be 60 soon and have about 1.5 mil. and no debt.
I rent.
To buy in the insanity that is the current real estate market… is for greaterfools.
I’m waiting.
I agree that 2 mil is the new minimum retirement goal.
I plan on working until 65 so I dont see that as a problem.
If I eventually get a piece of property where my payments are less than rent…. Why not.
But maybe I’ll rent forever.

#115 willworkforpickles on 03.24.21 at 7:06 pm

A 3 way solution for those priced out of the housing market could start with government providing a program for renters involving landlords to agree by written proposal to keep rent in line with a renters income or lack thereof submitted to a body of local government for approval to compensate landlords for tenant shortfall amounts to be paid to landlords. Fast tracking via government handling would need to be prioritized. Instead, doing nothing but allowing the system to destroy itself, and helping it do so is what they do.
If they are going to spend like mad anyway and they will, there will ultimately be record homelessness created eventually and nothing more by this current self serving government. What they should be doing is to get off their arses and implement a modicum of change in regard to all priced out of the RE market for the better..

#116 Agricola on 03.24.21 at 7:06 pm

GARTH
A horse neighs

A donkey brays…more appropriate in this case.

#117 Happy Housing Crash Everyone! on 03.24.21 at 7:07 pm

Great News for Ontariowe!

The provincial budget “might” be balanced in our lifetimes, as early as 2029!

https://www.cp24.com/news/ontario-2021-budget-focuses-on-hospitals-vaccines-and-cash-handouts-deficit-falls-to-33-1-billion-1.5359839

See Garth, nothin’ to worry about!

#118 crowdedelevatorfartz on 03.24.21 at 7:10 pm

@#96 Pandemic Paperchase
“It only took “one” determined “whack job” like Tommy Douglas to get us UHC”

++++

Ahhh yes the Universal Health Care where waiting lines for just about any operation are months if not years long.
Where wealthy people who can afford it go to the States to have their eyes, knees, heart, etc etc etc fixed for a fee.
Keep telling yourself that Universal Health Care is fantastic, until your family doctor retires and Trudeau’s new personal and business taxes have made getting a new family doctor about as easy as winning the Lotto Max…..
Enjoy the 3 hour wait line at the clinic.

#119 (non)entitled millenial on 03.24.21 at 7:12 pm

I look forward to sitting on my couch eating Cheetos, watching Netflix, while the UBI money rolls in :)

#120 Yukon Elvis on 03.24.21 at 7:12 pm

Demographics. I would like to know the demographics of who votes for the Libs and the free stuff. I would like to know the age, gender, race, country of origin, IQ, and net worth of the leftie voters. I am sure the Liberals know but they will never tell the likes of you and me. Knowing that data would be an interesting starting point.

#121 Nonplused on 03.24.21 at 7:17 pm

#4 Immigrant man on 03.24.21 at 1:47 pm
Average people with average incomes and lacking real estate now must understand they’ll never own a house in a major market.
———————
Amen! The Canada you knew is gone.

——————————-

I still don’t understand how the maths work on that in the long term. Sooner or later everyone dies, so what houses they own become available for others to purchase. And sure they keep trying to shove more immigrants in with a crow bar, but with the landed population generally in decline the population isn’t growing that fast.

The problem in my mind is mostly interest rates, supplemented by development cartels and zoning restrictions. And of course psychology. But I don’t know if any of those things can last.

And of course it must be remembered that the real insanity is confined to the YYZ and YVR service areas. Selling a cabin right now in the YYC area of influence, even in eastern BC, is like pulling teeth. BC itself is not a homogeneous market.

When I bought my first house in the late 90’s I paid $175,000 (the CMHC limit at the time) and was earning about $40,000 a year as a newly minted engineering graduate. It was a pretty average house, a 1200 ft bungalow in decent neighborhood but with some questionable design features. I was stretched to pull it off. But that was about 4.4 times income even back then, although my income prospects looked good.

Fast forward to today and that same house will sell for about $500,000, but a newly minted engineer will earn closer to $80,000/y. So it is up to about 6.3 times income, which seems disastrous, except when you consider that the interest rates are so low. The monthly carry as a percentage of income has not really gone up.

Buying your first house has never been easy. I don’t think it ever will be. It is a fairly major purchase, usually done before peak income years.

#122 Jake on 03.24.21 at 7:23 pm

Jake on 03.24.21 at 5:32 pm
Poll seems in line with blog participants mostly PCers… deficit control is a priority, ok to covid tax, no UBI, but no tax hike on us wealthy guys please.
====================

sounds good.

What is wrong with having poor people pay their fair share?
====================

Many of these poor folks are eating dirt right now. According to the numbers, majority of unemployed are low wage hourly workers, not the salaried WFH type and gov guys.

#123 Bezengy on 03.24.21 at 7:23 pm

Anyone else notice Dougie was wearing a red tie today when he announced a 38 billion Ontario deficit today?

#124 willworkforpickles on 03.24.21 at 7:28 pm

With runaway RE prices, renters need better laws to protect them as do landlords as well…no one sided regs.
Government needs to implement the changes and support system. Sounds a bit socialist but it doesn’t have to be at all if its structured toward a growing market.

…okay okay…enough fantasy already…and as for now
—————————–Back To Reality.

#125 Nonplused on 03.24.21 at 7:34 pm

#10 Polozi Scheme on 03.24.21 at 2:15 pm

“Wow from your survey results obviously you have a very large Baby Boomer audience!”

————————————-

Which makes sense. Why would you have your mind on your money and your money on your mind if you don’t have any?

My pre 20’s were about school and motorcycles.

My 20’s were about finishing that degree, marriage, and a house.

My 30’s were about paying for everything.

My 40’s saw some money accumulated in the RRSP account, so by the mid-40’s there was some reason to learn about investing.

Now that I am in my 50’s, time to think about a diversified portfolio that can kick off income if and when I have to retire.

——————————–

I think you will also find this is why there is such a divide between the young and homeless and the old wrinklies in these comments. The young don’t care about higher taxes because they don’t have the things that will be taxed (high income, investments, maybe soon houses). At least not yet. The old do care about higher taxes because they have those things and were counting on them to get through retirement, and see it as a great injustice that all they worked so hard for might be taken away just when they need it the most, because they cannot work.

How does that saying go? Something like: “If you are not a liberal when you are young you have no heart. If you are not a conservative when you are old you have no brain.”

#126 The Woosh on 03.24.21 at 7:44 pm

#51 Leo Trollstoy on 03.24.21 at 4:00 pm
Was I the only one who selected that they were gonna vote Liberal?

————————————————

Did you forget our superfan friend Binky Barnes? Sorry, but your Liberal candle is but a pale shadow against his blazing Liberal sun! PM PM indeed.

On a side note…Stone and Flop nearly made me p#ss my pants! That was funny.

#127 the Jaguar on 03.24.21 at 7:49 pm

#113 fishman on 03.24.21 at 6:54 pm

Fishman for PM.

I keep humming that old Simon & Garfunkel tune ‘Mrs. Robinson’, but inserting Nigel Wright’s name in the line

‘Where have you gone Joe Di Maggio, our nation turns it’s lonely eyes to you….woo woo woo. “

#128 Nonplused on 03.24.21 at 7:49 pm

#36 Jerry on 03.24.21 at 3:28 pm
I’ve seen a lot of frightening things on the site but this is the first paralyzing horror:

Almost 20% of people who have enough nous to fill in a form also believe there is a “right” to a UBI.

Are there that many whack jobs out there?

—————————————-

It’s mostly young people who haven’t figured out that mom buying you an Xbox for Christmas isn’t a “right”.

#129 Flop... on 03.24.21 at 7:56 pm

It’s happening, it’s really happening.

Last week my football team in Australia played in front of 50,000 fans.

Tonight, apparently, they are going to play in front of 75,000 fans, the biggest sporting crowd in the world since COVID started.

They are pushing for full capacity 100,000 by the end of April, but I wouldn’t be surprised if the cap it at 75,000.

Australia has the luxury of ruling over its own sports, Canadian sports are intertwined with the U.S, so they just have to go with the flow.

Soccer has to worry about governing bodies like FIFA and UEFA controlling everyone and basically having to wait for years for a return to normal.

Probably 2/3rds of NFL stadiums are open roof, so I will be looking to see if they increase capacity as the year unfolds.

What else?

Oh yeah, Plussy, I checked the calendar and it’s not April 1st so I guess it’s o.k to run this story as it’s not a joke.

Tell me what you think they look like?

Not allowed to use the word windmill on here, are we?

Maybe if they don’t generate enough power they can be used to hold up the Conservative Stool…

M46BC

—————————————————

Bladeless wind turbine that vibrates to generate power could save more than 500,000 birds killed each year by spinning blades, experts say.

https://www.dailymail.co.uk/sciencetech/article-9397801/Bladeless-wind-turbine-vibrates-save-500-000-birds-killed-year-by.html

#130 Ponzius Pilatus on 03.24.21 at 8:05 pm

Sailo,
The States just shoveled put 1.9 Trillion in relief payments.
Now, Biden is preparing a 3 Trillion infrastructure bill.
If you combine the two and divide by 10 and convert to Canadian, it comes out to about 620 billion Canadian.
I’m sure they would welcome you back with open arms, to help them pay down the debt.

#131 KLNR on 03.24.21 at 8:10 pm

@#97 Doug t on 03.24.21 at 5:46 pm
“ If your not a liberal at 25, you have no heart – if your not a conservative at 40 you have no brain “

unfortunately we haven’t had a proper CP for the past 20+ years. If they could find a leader to drag them into the 21st century they’d easily have a majority.

#132 KLNR on 03.24.21 at 8:11 pm

@#113 fishman on 03.24.21 at 6:54 pm
Whats the difference who gets in for western Canadians. Mickey Mouse, Donald Duck or Elmer Fudd. I vote because my father & uncles fought for King & Country in the last war & my Grandmother left a brother somewhere in the Ypres Salient mud in the first one. I can never not vote because of respect. That doesn’t mean I have to believe. Less painful with the Libs because their just fulfilling their manifest destiny by utilizing the western provinces as plunder. Voiceless lumpen proletariat endlessly tithing. With the Cons its the same, but with the added hurt of betrayal.

you’d probably be happier if you quit playing the victim card.

#133 CalgaryCarGuy on 03.24.21 at 8:16 pm

Re #69 Kevin on 03.24.21 at 4:50 pm
The POX party is the best party!!

Give me the Chretien/Martin Liberals, not these ones. I’m surprised with the votes for the Conservatives; I can’t vote for a party that doesn’t recognize Climate Change, no matter what the dear leader says.
—————————————————————–
Kevin, whether climate change is recognized or not there is absolutely ZERO anybody can do about it unless simultaneously tackling world population growth. When I hear ands see politicians willing to enact and enforce birth control limits then I will pay attention to the climate alarmists. Otherwise they are all blowing smoke.

#134 Wrk.dover on 03.24.21 at 8:20 pm

#206 Sail Away on 03.24.21 at 10:55 am
#163 Wrk.dover on 03.23.21 at 9:38 pm

Two days ago the WEF link said $769,000 USD assets puts an individual in the top 1% of the worlds wealthy.

Should there be a hefty tax on making that amount in four years? HELL YES!

————

Why should there be a hefty tax in that case? How about a reasonable tax?

Nothing wrong with making money, bro. And in the case of last year, mine came from a combo of engineering corp compensation, US cap gains and corp-owned Vancouver real estate sale, on which I then paid huge tax in Canada. See that? Not only creating many high paying jobs for Canadians, but also bringing $ in from other countries!

Do you think I should pay more than 50%? If so, why, when if the same was spread over 5 wage earners, they’d be paying 30% tax and contributing less to the economy?

Purely objectively based on the facts without a social justice imperative, there is no reason for me to pay more tax.

Rebuttal?

——————————

I almost missed that, I’m too tired to read all of the comments, I got a life!!!

If you are in at 50%, I’m cool with that being max.
Who knew it rolled that high here, or is that punishment for your citizenship status-double taxation?

I had a large living grandfather that paid 90% in USA in the fifties. Explains why he died broke I guess. You’d have been proud to have spent it like him, his yacht was an antique (even then) twin screw stink pot though…otherwise a true old school Shriner.

Thanks for floating Canada, seriously.

If I could sell time for $125/hr-250k/yr, I’d gladly fork over half to the country that kept me safely able to thrive so well within it. Only USA and Etria taxes expats I believe.

Income that high is optional though, remember.

#135 Left GTA on 03.24.21 at 8:35 pm

#81 Stone. They both have DB pensions. They could each have anywhere from 15 to 20 yrs contributed which means they could have anywhere between 500,000 to
1 million each in their pensions. So yes they are wealthy.
They could be worth 1.5 to 2.5 million.

#136 Exodus2020 on 03.24.21 at 8:42 pm

I’ve been following this blog for years and a contrarian approach to the views would have made me wealthier and happier. I think Garth should always begin with disclosure on what percentage of his portfolio is in real estate and acknowledge some positive points on owning (including mental health because 900 square feet for a family of four is taking more years off my life than smoking).

#137 Entrepreneur on 03.24.21 at 8:42 pm

The rush, the fear, now survivial time!

I remember in the early eighties there was talk of not enough youth having babies. The leaders were afraid that there won’t be that many people to “support the system,” especially for the older ones.

So, my guess, these leaders thought outside-the-box (border) how to goose the economy to support the economy, the system. We hear that similar saying from our leaders all the time to this day.

The thought was/is tunnel vision. And with “to support the economy” thinking these control-maniacs wannabe Gods forgot one one little-bitty entity in the equation.

Earth, quiet on the side or is it? Ok, two entities, do not play God. Some will say do not interfere with Nature as it is forces that are powerful, huge. Ok, three entities.

Right now, the main manufacturing in Canada is Marijuania Grow Shops, RE, Printing Money, wow, just for us Canadians.

And the only social gathering in great numbers are in big box stores. Stop locking down the responsible business owners trying to make a living.

Power to the people living within borders.

#138 GreaterFool on 03.24.21 at 8:54 pm

Hopeless, frustrated, financial responsibility is being punished, I give up.

Need a referral to a mortgage specialist and a broker-of- record audi driven elite agent now…

#139 glenn wood on 03.24.21 at 9:07 pm

WFH has been an excellent experiment in identifying a multitude of jobs that can be safely outsourced to India. Accenture is very busy helping their clients prepare for the transition.

#140 crowdedelevatorfartz on 03.24.21 at 9:09 pm

When on holidays….. dont handle cute animals…..

https://www.sundayvision.co.ug/tik-tok-a-woman-unknowingly-holds-a-baby-octopus-it-was-a-kind-of-deadly-octopus/

#141 Rent the Podium on 03.24.21 at 9:23 pm

Anyone following Korea’s real estate bubble? They’ve introduced cap gains taxes, tax on multiple ownership and others. Apparently to little effect on home (apartment) prices, which continue to rocket… yikes.

#142 Dr V on 03.24.21 at 9:40 pm

133 Calgary car guy

I remember in grade school being told the greatest threat to humankind was overpopulation. Yeah and maybe some pollution and nukes. The concern was exponential growth, 20 billion people etc.

But now it seems the developed and much of the developing world has decreasing birth rates, and some falling below replacement rate.

I’ve even heard that women’s rights in developing
countries has triggered this.

Anyways, it looks like most growth over the next 80 years will be in Africa.

https://www.pewresearch.org/fact-tank/2019/06/17/worlds-population-is-projected-to-nearly-stop-growing-by-the-end-of-the-century/

#143 kommykim on 03.24.21 at 9:50 pm

RE: #2 Commie Free Zone on 03.24.21 at 1:41 pm
Thankfully we haven’t been infiltrated by too many of these commie is a commie is a commie dudettes…..

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

Say what?

#144 Don Guillermo on 03.24.21 at 9:54 pm

#118 crowdedelevatorfartz on 03.24.21 at 7:10 pm
@#96 Pandemic Paperchase
“It only took “one” determined “whack job” like Tommy Douglas to get us UHC”

++++

Ahhh yes the Universal Health Care where waiting lines for just about any operation are months if not years long.
Where wealthy people who can afford it go to the States to have their eyes, knees, heart, etc etc etc fixed for a fee.
Keep telling yourself that Universal Health Care is fantastic, until your family doctor retires and Trudeau’s new personal and business taxes have made getting a new family doctor about as easy as winning the Lotto Max…..
Enjoy the 3 hour wait line at the clinic.
*******************************
Wealthy Canadians have a 2 tiered health system. I know I do ( so does Trudeau and his pals). The rest of you, keep protecting Canada’s UHC and stand in line.

#145 SunshineCoaster on 03.24.21 at 9:55 pm

Sechelt gets a mention, wow! Homebuyers aren’t the only ones moving up, the crackheads have figured out how to make the ferry ride and are now stealing anything that isn’t chained down. Got an alert that the District of Sechelt had their tractor stolen last night, so I guess they’ve moved on from mountain bikes and smashing storefront windows…

#146 Ponzius Pilatus on 03.24.21 at 9:59 pm

#141 Rent the Podium on 03.24.21 at 9:23 pm
Anyone following Korea’s real estate bubble? They’ve introduced cap gains taxes, tax on multiple ownership and others. Apparently to little effect on home (apartment) prices, which continue to rocket… yikes.
————
It’s everywhere.
HongKong, Europe.
Canada is not special.

#147 Father's Daughter on 03.24.21 at 10:03 pm

#136 Exodus2020 on 03.24.21 at 8:42 pm
I’ve been following this blog for years and a contrarian approach to the views would have made me wealthier and happier. I think Garth should always begin with disclosure on what percentage of his portfolio is in real estate and acknowledge some positive points on owning (including mental health because 900 square feet for a family of four is taking more years off my life than smoking).

—————————————————————–

Seriously? You are an adult who can make your own decisions. Consider renting a bigger place. Not all rentals are small or that much more expensive to upgrade. Rents have mostly gone down over the last year. I’m not sure that improved mental health is correlated positively with owning a house, especially as of late.

I’ve made lots of financial decisions that aren’t “Garth approved” that have made me money or made me happy. I enjoy this blog and I take the advice when and if it applies to my life situation.

But you know what..maybe you should ask for your money back.

#148 Dolly on 03.24.21 at 10:08 pm

Average people with average incomes and lacking real estate now must understand they’ll never own a house in a major market.

Did you just lose half of your followers?

I’ve been reading your blog since 2013. In 2015 I had a chance to buy a townhouse for 700k given that I would take a 500k mortgage. Today, having under my belt more than 650k, I can still buy that townhouse, by taking… 550k mortgage!

#149 Don Guillermo on 03.24.21 at 10:20 pm

#232 Stoph on 03.24.21 at 1:46 pm
#228 Sail Away on 03.24.21 at 1:14 pm
#209 Faron on 03.24.21 at 11:11 am

Speaking of whale art. How was your homecoming quarantine or are you still on the Big Island?

———–

I was actually only there for 3 days before being called home for a job that is a gold mine for us. Haha. Literally- a gold mine work camp. When funding is in hand for a mine project, everything needs to be done yesterday.

My wife and inlaws are still there, return flight to Van April 1 and hoping no hotel quar. They got the Pfizer vax 1st shot a couple weeks ago and the second shot scheduled for next Tues.

————————————————————–

Can’t you just fly into Bellingham and drive across the border? No hotel quarantine. Still have to isolate at home for two weeks though
************************************
Yes, I know someone who flew from MZT to LAX and onto to SEA last week. He then took the ferry to Fantasy Island. No quarantine jail!!

#150 mike from mtl on 03.24.21 at 10:24 pm

#139 glenn wood on 03.24.21 at 9:07 pm
WFH has been an excellent experiment in identifying a multitude of jobs that can be safely outsourced to India. Accenture is very busy helping their clients prepare for the transition.
///////////////////////////////////////////////////////////

Exactly.

Listening to the grapevine, those who cheer WFH will soon be in a quite different situation. All that means your professional experience is not critical, an input to output if you will. Nothing to say to near-source or outsource eventually. Why hire a 100k Toronto IT guy when an Albertan bum will accept 50k, or desperate talker from Bangalore for 10k?

The elite will always covet an official office, the lessor weight can believe they’re needed until not. Idiots cheering permanent WFH will regret it.

#151 DON on 03.24.21 at 10:55 pm

#33 Sail Away on 03.24.21 at 3:19 pm
Why would anyone choose to stay and play in an unfriendly environment? Meaning: who, with options, would ever choose to hamstring their future at these prices?

Our kids are probably 5-10 years away from home ownership, and there is no way we would recommend they buy here when the entire US beckons with higher wages and far better RE value.

In the end it comes down, as usual, to choices. Be adaptable and hunt where the game lives, not where you’re comfortable

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

Agreed…opportunity comes when you go looking for it. Unfortunately comfort seems to win over most people.

#152 DON on 03.24.21 at 11:00 pm

#60 Stone on 03.24.21 at 4:29 pm
#12 Leftover on 03.24.21 at 2:16 pm
Meanwhile in Utopia (New Zealand), where there is no capital gains tax on anything, they just increased the “bright line” for investor-owned property to 10 years.

What this means is if you sell before the 10-year mark any profit is taxed as income. Yes, income. Same rate as you pay as a worker bee, 33% above $70,000.

https://www.newzealandnow.govt.nz/living-in-nz/money-tax/nz-tax-system#:~:text=New%20Zealand's%20personal%20income%20tax,for%20income%20up%20to%20%2414%2C000).

———

Your link doesn’t seem to indicate what you’ve outlined (or I just don’t see it) however these do:

https://www.bloomberg.com/news/articles/2021-03-22/new-zealand-targets-speculators-in-new-assault-on-house-prices

https://betterdwelling.com/new-zealand-curbs-property-investment-tax-advantage-wants-productive-investment/

New Zealand sounds more and more attractive. Imagine not paying capital gains tax and controls in place to curb real estate speculation. How much more of the gains from a balanced and diversified portfolio could I keep versus handing over for taxes? It makes an 8.07% return ytd on a balanced and diversified portfolio even more attractive. Maybe moving there is the New Canada.
********

A friend spent the last year in NZ and wants to move there permanently.

#153 Sail Away on 03.24.21 at 11:05 pm

#134 Wrk.dover on 03.24.21 at 8:20 pm

If you are in at 50%, I’m cool with that being max.
Who knew it rolled that high here, or is that punishment for your citizenship status-double taxation?

Income that high is optional though, remember.

————

BC/Fed max combo rate is 53.5%.

With investments and real estate, the income is not always totally optional since you sometimes have to pull the trigger and sell when the time is right, triggering cap gains in nonreg and investment property. Also in the firm, when other shareholders want a dividend, it would be weird and possibly not legal under our bylaws to refuse it.

No tax is payable to the US when living in Canada because rates here are higher- if they were lower, we’d have to pay the difference from the US rate to the IRS. We still have to file US returns every year.

#154 Doug in London on 03.24.21 at 11:06 pm

Like any sane person I’m not in the market for a house right now, but if I ever actually do want to become a home owner I’ll go back to the north and look there. Are there any affordable houses in Blind River, Temagami, or Fauquier?

#155 Doug in London on 03.24.21 at 11:17 pm

@CalgaryCarGuy, post #133:
You could well be right, so why bother voting for a party that believes in climate change? It’s not just about climate change, but rather voting in a government that actually believes in science. We saw what happened with COVID cases when 2 presidents, one in the United States and the other in Brazil refused to listen to what the scientists had to say.

@glenn wood, post #139:
Good point you make. It’s something to think about for someone presently working from home in Grand Bend, Punkeydoodles Corners, or Bancroft.

#156 DON on 03.24.21 at 11:19 pm

https://www.zerohedge.com/markets/rabo-central-banks-can-stop-1937-or-1929-they-are-powerless-stop-1789-or-1939

In short, the simple message is that markets had to “correct their false path” *shrug*. Logically, one could argue that there are key risk-off drivers out there, however:

Germany is going into further lockdown until at least 18 April, warning of a whole “new pandemic”, and meaning a third of 2021 is a write-off. This underlines the degree to which the virus is still out there despite markets pricing for full global health for months;

Hong Kong has made clear it won’t be removing lockdown until 50% of the population are vaccinated (it’s now around 5%), and the UK –way ahead on vaccinations– says foreign summer holidays probably aren’t going to happen;

New Zealand’s targeting of housing investment via taxes is a harbinger that populism is not actually going to be popular with all markets…and housing may be an easy target;

US Treasury Secretary Yellen was yesterday also stressing the need for tax hikes;

Massive market volatility in Turkey, despite its endogenous origins, could still spill over into the broader EM complex if it escalates. It again underlines politics can rain on the market parade; and

The Suez Canal is blocked by a giant Chinese vessel, and there doesn’t seem to be a plumber.

#157 Stoner on 03.24.21 at 11:20 pm

#139
WFH has been an excellent experiment in identifying a multitude of jobs that can be safely outsourced to India. Accenture is very …
———
Last I heard, India was looking to outsource its Vaccine production and pharma industry to the banana republic called Canada. Apparently TCS has outsourced the strategy to Accenture

#158 No Point Waiting on 03.24.21 at 11:41 pm

By the way, all the major banks have now migrated mortgage rates form around 1.5% to over 2%. No biggie? Nah, not yet. But listen to what CIBC economists are saying: “The market is currently pricing in two (central bank) hikes in 2022, three in 2023, two more in 2024 and one hike in 2025.”

————-

So if you can wait until 2025, with those projected rate increases, you will have the same mortgage rate as the one you could have had before Covid. And if you wait, that house and condo will be exponentially more expensive..

Not exactly a show stopper rate increase, and simply a reminder that real estate has been the only vehicle to financial freedom for the 70% of Canadians that own. That other renting 30%, well, they are will continue to be collateral damage that no one care about.

Wow, since 2008, that means the temporary, ’emergency’ low rates will have been in place for 17 years. That is the lifetime of a mortgage….

Thanks Covid….

#159 T-Rev on 03.25.21 at 12:51 am

Do Calgary and Edmonton count as major markets, or are we excluding two of the country’s five biggest cities?
I feel compelled to remind the readership yet again that AB has the highest median household income in the country, the highest weekly average earnings, and the most affordable real estate of the major English speaking markets by a wide margin. Great detached homes in the burbs still available under $400k (and at least in Edmonton burbs means within 20-25 minutes of dead center Jasper ave and 100 st should you need to return to the core.)

Life is better here on the Eastern slopes of the Rockies.

#160 The Totally Unbiased, Highly Intelligent, Rational Observer on 03.25.21 at 1:16 am

“Vote for Max, elect Justin!” — Garth

To some people it is all about the numbers and about winning.

However, what is the point of “winning” if you have to become a liberal to do it?

Some people do not feel comfortable with closing their eyes, covering their ears, holding their nose, turning off their brain, defying their conscience, endorsing all evil, voting for a truly shameful political fraud, and then pretending that they were offered a real choice.

Consider the sad reality:

Vote for the Liberal Party. Get Liberal policies.

Vote for the NDP Party. Get liberal policies.

Vote for the so-called “Green” Party. Get liberal policies.

Vote for the so-called “Conservative” Party. Get liberal policies.

Vote for the People’s Party. Get criticized for not voting for liberal policies.

Of course, if you do not bother to vote at all, then at least you will have retained your right to complain when all the liberals destroy the country.

#161 Maxi Bernier on 03.25.21 at 2:07 am

“In fact, Erin O’Toole supports such things as abortion, the LGBTQ agenda, and the Paris Climate Accord”

Well it’s about time (minus maybe the last 5 years of developments in the TQ agenda). Political parties’ positions are supposed to equilibrate. Abortion will not be revoked, gay marriage will not be revoked, and climate change has to be addressed eventually (also there is no risk in addressing it, and everything must go electric eventually, and our oil has been there for millions of years and it isn’t going anywhere, and it will be more valuable in the future, etc).

So there is no point in voting for True Blue values that do nothing but lose elections and have no chance of being overturned. You might as well at least get 50% of what you want, instead of getting what we’ve got now.

#162 Dr talc on 03.25.21 at 2:09 am

For cdn citizens to enter Canada today T2 wants a cpr test less than 72 hrs old, paid for by the traveler who then quarantines for 2 weeks. So what if you test positive? They let you in, you go home and quarantine for 2 weeks. In other words the result is the same irregardless of test results. See the con? The tests are for case stats and data harvesting. Cough cough.

#163 dosouth on 03.25.21 at 2:18 am

Yes even the collies are working from home…..

Even Hillary is working from home….

#164 Nonplused on 03.25.21 at 2:20 am

#235 Dean Simpson on 03.24.21 at 3:10 pm
WSIB, workers compensation benefits, social assistance benefits, lottery winnings, gambling winnings are all not taxable and no income taxes are paid on them.

They should be subject to income taxes too like all other regular taxable income from wages, employment income, CPP, OAS, most pensions, RRIF, RRSP, LIRA, LRIF withdrawals, income to interest income. We all pay income taxes on all our income sources.

———————————–

All gambling in Canada, except on the reserves, is ostensibly for charity, of varying legitimacy. This is why winnings are not taxed, aside from what the bingo hall earns and they do pay tax. All the money gambled is post tax and it is for charity. Maybe if you could deduct any money spent on the STARS home lottery tickets you should also pay tax if you win, but that isn’t feasible.

On the reserves there are no taxes on anything, by treaty. That is the deal we made to end the wars. I don’t think a “do-over” is justified. The deal is the deal.

It’s good to know before you blow.

#165 Jane24 on 03.25.21 at 3:59 am

Well here in Britain the govt is having a commission whether or not WFH should be an employment right and whether for those jobs where it is possible, it should be the default starting employment position. Those in the know say that this is just window dressing and WFH will become legally the office job norm as it meets the govts objectives of work/home balance for mental health and the national green agenda. Two big ticks. Nationwide, a major bank, has just announced that its 15,000 office staff will be permanently WFH.

Since we have 30 million UK vaccinated and are ahead in the Covid international shot competition (cannot believe that this even exists), one can only assume that such govt guidelines will be coming your way in the near future. I would not invest in anything to do with traditional cities as the new post-covid cities will be a totally different species of animal. Get out of town.

#166 Kato on 03.25.21 at 6:12 am

#13 Ryan on 03.24.21 at 2:19 pm
I don’t know how one is suppose to be able to afford this country. Heck we drive a used car (no Audi).
————–

Though some people BUY new cars, we all drive used cars.

#167 millmech on 03.25.21 at 8:23 am

#66
Everyone and I mean everyone that buys a house now suites it out. How else are you going to afford the 500k over asking price to win the bid mortgage. Thank the gods that the landlords rent to us because where else would we go.
Just look at that huge expanse of a nation called Canada an see how tightly packed in we are. Japan has 126 million citizens and is 26 times smaller than Canada, yet Japan has cheaper housing than us.

#168 IHCTD9 on 03.25.21 at 8:27 am

#160 The Totally Unbiased, Highly Intelligent, Rational Observer on 03.25.21 at 1:16 am
“Vote for Max, elect Justin!” — Garth

To some people it is all about the numbers and about winning.

However, what is the point of “winning” if you have to become a liberal to do it?
___

Just do what I do. I didn’t vote for JT, he got in anyway. Now we have 10X the problems we had before the Trudeau Liberals showed up. I don’t feel obligated to cover the bill incurred by Trudeau policy, so I let his supporters pay instead.

Limit your tax remittances anyway you can. Avoid and offset. It actually becomes a fun hobby after a while.

#169 Dharma Bum on 03.25.21 at 8:31 am

#114 Crowdedelevatorfartz

I’m waiting.
I agree that 2 mil is the new minimum retirement goal.
I plan on working until 65 so I don’t see that as a problem.
If I eventually get a piece of property where my payments are less than rent…. Why not.
—————————————————————————

That’s what I like about you. You are a contrarian.

Rent for most of your life.
Accumulate liquid assets.
Retire, then buy.

Nice to have peace of mind in the home stretch.

#170 Steven Rowlandson on 03.25.21 at 8:36 am

The conservative party supporters need to keep in mind that their party is at least as guilty as the liberals when it comes to debt and deficits plus the idiotic foreign policies including wars for special interest groups.
On the other hand the Pox on them all party would not only have to be diametrically opposed to what the other parties stand for it would have to be Nazism in disguise to be a valid alternative and that means it would be illegal. So in the final analysis Canadians have no alternative but to vote for their own downfall or not at all……

#171 the Jaguar on 03.25.21 at 8:37 am

‘CALGARY • Billionaire Russian oligarch Igor Makarov is the largest shareholder in fast-growing Spartan Delta Corp., according to regulatory filings by the Calgary-based oil and gas company.

On Monday, Spartan Delta’s regulatory filings revealed Makarov’s Geneva, Switzerland-based ARETI Energy S.A. has taken a 21 per cent stake in Spartan Delta, acquiring roughly 23.7 million shares in the natural gas producer. The development follows weeks of speculation that major Russian investors are looking for deals in the Canadian oilpatch.’

The Russians are coming! The Russians are coming!

#172 KLNR on 03.25.21 at 8:40 am

@#150 anecdotes from mtl on 03.24.21 at 10:24 pm
#139 glenn wood on 03.24.21 at 9:07 pm
WFH has been an excellent experiment in identifying a multitude of jobs that can be safely outsourced to India. Accenture is very busy helping their clients prepare for the transition.
///////////////////////////////////////////////////////////

Exactly.

Listening to the grapevine, those who cheer WFH will soon be in a quite different situation. All that means your professional experience is not critical, an input to output if you will. Nothing to say to near-source or outsource eventually. Why hire a 100k Toronto IT guy when an Albertan bum will accept 50k, or desperate talker from Bangalore for 10k?

The elite will always covet an official office, the lessor weight can believe they’re needed until not. Idiots cheering permanent WFH will regret it.

Regardless of wfh, if your career choice can be outsourced to a third world country then you may very well be an idiot.

wife and i are never going back to an office.
Life is good, beautiful day out there.

#173 Immigrant man on 03.25.21 at 8:41 am

Maybe its not that bad after all. Sure, the average family (or even more$ than average) will be shut out of owning a house in southern Ontario. But you can still buy a decent house without putting your grandkids in debt in Alberta, Saskatchewan, Manitoba. You can still buy RE that will not max out your credit in small town Ontario.

What’s that noise? Oh the loud whining of those who cannot imagine living in the sticks!
One thing I noticed about Torontonians is that they think they are so much better then the hicks and the western Canada rednecks. Well, they are not. I lived in Toronto, I lived in western Canada, I lived with the hicks. You are all much more similar than you think.

Maybe this price pressure will force some people out of southern Ontario and let them see the rest of the country. And that’s a good thing.

#174 IHCTD9 on 03.25.21 at 8:49 am

Normally right about now I get my spring projects on the go. I’ve already got most of the yardwork done thanks to a pretty dry start to the spring.

I am installing a stainless steel screen around the perimeter of my old house, and plan(ned) to build some decorative skirt boards for under the decks at the same time.

One look at Home Depot’s website kyboshed that plan. Forget it – I’ll try again next year.

#175 Rosco on 03.25.21 at 9:17 am

The federal cons and provincial cons always gang up on the front runner and elect the 2nd or 3rd place contender to be the party leader. (REDFORD)
The conservatives blew it when the Quebec delegates chose Scheer over Bernier over the milk monopoly.
Since Max was cancelled we get O’Toole now.
Try to imagine Scheer driving a neighborhood ice-cream truck with a pudgy apron, cute cap and goofy smirk as he peddles ice-cream cones to the children.
The Conservatives spilled the milk when there were more important issues at stake.

#176 Penny Henny on 03.25.21 at 9:36 am

This site is completely non-commercial. More like a homeless shelter than a blog, actually. – Garth
////////////

Where’s my breakfast?

#177 IHCTD9 on 03.25.21 at 9:42 am

#173 Immigrant man on 03.25.21 at 8:41 am

Maybe this price pressure will force some people out of southern Ontario and let them see the rest of the country. And that’s a good thing.
___

It’s already been going on for a while now. I watch with amusement at the changes. We now have 7 Pizza joints , and 5-6 Sub franchises in town LOL! New Gas stations popping up all over – restaurants too.

There’s no way all of these are going to last, but they’re all slugging it out. Pretty much every one of these outfits is put up by GTA escapees as a means to earn a living in the sticks as there are next to no good jobs out here. Huge risk, the whole family takes a pounding if their Pizza Hut biz fails – they’ll all end up working at Walmart or worse. If these places weren’t family efforts with the risk spread around – it wouldn’t be a very smart business plan. Older retired folks just don’t suck back a ton of Pizza/Subs – and this is a growing demographic out here. Some folks are going to burn.

If I was young and just starting out, I know exactly what I would do, and I’d win big doing it (imho). Losing your mind and soul living in a smelly packed metro in a micro condo, buried in school and mortgage debt is for fools. A great quality of life can still be had in Ontario, but it is a fast moving target right now.

#178 Sail Away on 03.25.21 at 9:43 am

#172 KLNR on 03.25.21 at 8:40 am

Regardless of wfh, if your career choice can be outsourced to a third world country then you may very well be an idiot.

————

Or, alternatively, you may be someone who made the best decision available at the time and have built a career in an industry that now, due to technological advances, is easily outsourced.

Reusing CEF’S comment from last week:

Careful, your empathy is showing.

#179 Sail Away on 03.25.21 at 9:54 am

#164 Nonplused on 03.25.21 at 2:20 am

All gambling in Canada, except on the reserves, is ostensibly for charity, of varying legitimacy.

————

So, logically, gambling losses should be tax deductible as charitable donations?

#180 IHCTD9 on 03.25.21 at 10:37 am

#170 Steven Rowlandson on 03.25.21 at 8:36 am

The conservative party supporters need to keep in mind that their party is at least as guilty as the liberals when it comes to debt and deficits
____

I’ll agree – but only up till 2015. Trudeau is in a class of his own – globally. If the Liberals can’t find a way to control themselves, the current crop of balloonheads in Ottawa will go down in history as the party that crippled the country for multiple generations.

Right now, all it would take is a few % increase in rates to put debt servicing costs close to the number 1 spot on the federal budget for expenditures. This is right alongside letting house prices go berserk, and letting inflation run unchecked.

I’m damn glad I was able to get my financial ship in order under Chretien, Martin, and Harper. Kids starting out today are running the race with a leg amputation courtesy of the Trudeau Liberals. Houses unattainable, soon to be higher taxes, soon to be less services, retire at 70 after shelling out the highest CPP contributions in history.

It’s amazing how much damage a single incompetent Party can do in such a short time. If Trudeau ran Venezuela, he’d probably make things worse.

#181 Ponzius Pilatus on 03.25.21 at 10:46 am

#179 Sail Away on 03.25.21 at 9:54 am
#164 Nonplused on 03.25.21 at 2:20 am

All gambling in Canada, except on the reserves, is ostensibly for charity, of varying legitimacy.

————

So, logically, gambling losses should be tax deductible as charitable donations?
————————
Use a Venn Diagram to check your logic.

#182 Immigrant man on 03.25.21 at 11:09 am

#177 IHCTD9

It’s already been going on for a while now. I watch with amusement at the changes. We now have 7 Pizza joints , and 5-6 Sub franchises in town LOL! New Gas stations popping up all over – restaurants too.
—————-

By the nature of my work I lived in a few mining towns. And I can tell you that every mining town is lacking in quality restaurants. Sometimes lacking severely! Naturally, anyone moving to a mining town moves there to work for the mine or the associated contractors. A typical miner makes a good 100k, but unlike many of the savvy readers of this blog, the miner blows most his money! And that’s where the big city expats can attach themselves to the miners disposable income.

Also, anyone in trades will have the whole town to themselves. I remember bein in Marathon, ON (famous Hemlo gold discovery). The plumber there was a respected man, everyone was nice to him, because there is just no one there to fix your toilet.

And it’s not just for people who have to get their hands dirty. Lawyers too! Like one lawyer per town sort of deal. People driving 100s of km to another town if they need another lawyer (divorce lawyer cant represent both parties).

So there business to be had outside of the “major markets”. Oh and for a price of an average townhouse in GTA you can have a palace in most of these places.

#183 RyYYZ on 03.25.21 at 11:18 am

This country is well and truly f#[email protected], I think.
We hardly make anything any more. We don’t seem to be able to get anything done (pipelines, various mega projects, road and bridge construction), at least not without massive delays and cost overruns, if at all. Way too much of our ingenuity and capital is going into building cornflake palaces and glass condo towers. Deficits and the debt are way up, and most Canadians seem entirely sanguine about it. And there’s zero chance that Trudeau and the Liberals will suffer for any of this.

#184 Albertastrophe on 03.25.21 at 11:30 am

BREAKING NEWS:

The Carbon Tax IS Constitutional

Alberta is POOCHED!

https://www.cbc.ca/news/politics/supreme-court-federal-carbon-tax-constitutional-case-1.5962687

If you live in Alberta, put your home up for sale ASAP or your value will be down by probably 90% by 2026.

If you want any kind of economic future, get rid of the Kenney dinosaurs, vote NDP or Lib and get a government that can create some new ideas for a future for you.

#185 Dr V on 03.25.21 at 11:31 am

164 nonplused – and lottery winnings are just the redistribution of after tax $$ so not taxed.

#186 KLNR on 03.25.21 at 12:00 pm

@#178 Sail Away on 03.25.21 at 9:43 am
#172 KLNR on 03.25.21 at 8:40 am

Regardless of wfh, if your career choice can be outsourced to a third world country then you may very well be an idiot.

————

Or, alternatively, you may be someone who made the best decision available at the time and have built a career in an industry that now, due to technological advances, is easily outsourced.

Reusing CEF’S comment from last week:

Careful, your empathy is showing.

fair enough.

You and fartz are the last 2 on here that should be talking about empathy though. glass houses etc etc

#187 Sail Away on 03.25.21 at 12:14 pm

#166 Kato on 03.25.21 at 6:12 am
#13 Ryan on 03.24.21 at 2:19 pm

I don’t know how one is suppose to be able to afford this country. Heck we drive a used car (no Audi).

———-

Though some people BUY new cars, we all drive used cars.

———-

Unless it’s a Tesla, which continuously becomes new again with every update. That’s the best part.

#188 Divv on 03.25.21 at 12:20 pm

#159 T-Rev on 03.25.21 at 12:51 am

///

Please stop the recruiting efforts, T-Rev. Last thing needed in these parts is a parachuting in of YVR or YYZ windfall house-sale gains, considering the immense corporate consolidations underway. I am from here, if you can’t already tell. Shhhh.

#189 Wrk.dover on 03.25.21 at 12:37 pm

#153 Sail Away on 03.24.21 at 11:05 pm

With investments and real estate, the income is not always totally optional since you sometimes have to pull the trigger and sell when the time is right, triggering cap gains in nonreg and investment property.

——————————————-

Many, most mink ranchers in my County expanded every time there was a big income year, to avoid top bracket.

Suddenly there was no mink industry and much worthless non-re-purpose-able infrastructure.

So best plan, as you do, pay tax as you earn, if you must earn. And live large on the keepings. As you do!

#190 Looking Up on 03.25.21 at 12:47 pm

#178 Sail Away on 03.25.21 at 9:43 am
#172 KLNR on 03.25.21 at 8:40 am

Regardless of wfh, if your career choice can be outsourced to a third world country then you may very well be an idiot.

————

Or, alternatively, you may be someone who made the best decision available at the time and have built a career in an industry that now, due to technological advances, is easily outsourced.

Reusing CEF’S comment from last week:

Careful, your empathy is showing.

————-

In the future, the past is always obvious.

#191 IHCTD9 on 03.25.21 at 12:48 pm

Speaking of being glad – I’m also glad I’m not poor in Canada. If I was, Trudeau would be my worst enemy. Trudeau is evidently set on helping those well off enough to own assets which his fiscal policies can bloat to the moon. The rich are definitely getting richer in Trudeau’s Canada.

I don’t blame Trudeau – he undoubtedly identifies with elites and wealthy Canadians due to his upbringing. I understand it’s tough to help the little guy when you have no idea what it’s like because you’ve never once been there.

True to form then, that we see Canada under Trudeau becoming a rich man’s paradise. The only problem is for those who do not yet own any financial or hard assets like a house. Youth and newcomers are screwed, older Gen X and Boomers get a round of good fortune watching the house they paid 300K for shoot to 1.5 Mil, and sweet 5-10% tax free annual gains on their investments. Trudeau’s fiscal policy has been the biggest wealth producer for Boomers and Gen X’ers ever.

I think if Trudeau gets another majority, I’ll just quit working and live off of RE and Portfolio gains. In Trudeau’s Canada, I’m rich enough to get away with it.

#192 Michael in-north-york on 03.25.21 at 12:49 pm

#148 Dolly on 03.24.21 at 10:08 pm
In 2015 I had a chance to buy a townhouse for 700k given that I would take a 500k mortgage. Today, having under my belt more than 650k, I can still buy that townhouse, by taking… 550k mortgage!
===

You might consider buying that townhouse with a $300k downpayment and a $900k mortgage. You will be left with $350k to invest. A balanced portfolio will give you 7-8% in returns, part of it tax-free (TFSA), vs 2-3% interest payments on your mortgage.

#193 Faron on 03.25.21 at 1:15 pm

#187 Sail Away on 03.25.21 at 12:14 pm

#166 Kato on 03.25.21 at 6:12 am
#13 Ryan on 03.24.21 at 2:19 pm

Unless it’s a Tesla, which continuously becomes new again with every update. That’s the best part.

Do their OTA updates correct the galvanic corrosion in the suspension? Or the holes your dog tore in the seats? That would be awesome.

#194 Sail Away on 03.25.21 at 2:18 pm

#193 Faron on 03.25.21 at 1:15 pm

Do [Tesla’s] OTA updates correct the galvanic corrosion in the suspension? Or the holes your dog tore in the seats? That would be awesome.

——–

Yes. Elon now beams down programmable nanites from the Starlink satellites that live in the car and continuously repair things. I actually abraded my shin biking the other day and after a 12 minute car ride it was healed.

#195 Dolly on 03.25.21 at 2:22 pm

#192 Michael in-north-york on 03.25.21 at 12:49 pm

The idea is a little bit different… I’d be having probably a mortgage of 200k right now, with my TFSA filled. Now though, I have to take a 900k mortgage, which is, well… extremely sad.
Oh well.. I’ve learned my lesson.
Sometimes to become financially independent you just have to take on a little bit more risk, and 70% of Canadians did just that.
Houses always go up, in Canada. Remember that kids. Don’t do the same mistake I did.

#196 Ray Hauser on 03.25.21 at 2:24 pm

Garth, bond yields are dropping again this whole week. The 5 to 30 year bond yields down anywhere from 15 to 21 basis points. Why? inflation is still going higher. The central banks keep manipulating everything.

#197 raven on 03.25.21 at 2:38 pm

I have a secure, well paying job with DB pension (yes, score) in the Vancouver area and have pretty much resigned myself to renting for life if I want to stay here. Am shovelling whatever I can into diversified savings and investments, living modestly otherwise. Skipping strata fees, prop taxes, frothy home maintenance and repair costs, long distance commuting, other property ownership expenses. If by some miracle the housing market dives, and it seems like a good idea, I will have a substantial down payment to put towards a place somewhere. If not, that will have to become my post-retirement housing fund. I lucked into an affordable rental in Kitsilano years ago (locally owned for two generations by decent landlords, amazing location where a tiny 1 bedroom runs you min $500K+ to buy next door). I’m good (don’t get me wrong, the RE market here is ridiculous but you can’t fight stupid). Really appreciate what I have learned from this blog and community. Thanks, Garth and co.

#198 enthalpy on 03.25.21 at 2:56 pm

Just going to keep investing and watch the fireworks lakeside, with a phat doobie and a beer.

#199 CHERRY BLOSSOM on 03.26.21 at 10:52 am

We should also stop the banks from allowing Lines of Credit against homes. The Millennials do not know about money . They were brought up with plastic credit cards. They are going to create trouble for the whole country when CMHC has to kick in big time. I have not already said this.