How do you possibly buy a house when bidding against maniacs? Or sell to one?
This is perplexing. Stressful. Extreme times have brought extreme conditions and high emotions. “Here you are having to put your life’s one big decision of buying a home in 10 minutes of viewing time,” says a freaked-out buyer in Burnaby. “Absolutely ridiculous.”
You bet. The industry’s covering itself with ignominy. “Ending bidding wars where the winning bidder routinely pays vast sums more than the asking price and what the second-place buyer is willing to offer is a good and overdue measure,” says the Toronto Star (average prices have increased $100,000 there in 90 days).
Reports the Squamish Chief (how did the woke moisters miss that name?): “It is a level of activity that we have probably have never experienced. All of us are struggling right now, whether you are a buyer, a seller, a tenant, an appraiser, a mortgage person, a home inspector, a realtor; we are struggling in this marketplace because it is like something we have never come across.”
Did you see the latest bank research?
RBC has found that 36% of under-40s believe they’ll never own real estate and almost two-thirds of Canadians think most people are now priced out. Laughably, the bank discovered those saving up to buy a house are putting away an average of under $800 a month (GTA detached prices are increasing by $31,000 monthly). The average saved is but $42,000. Four in ten have managed to set aside $25,000 or less. This is not going to end well.
By the way, the average house in Canada now commands $680,000. The humpers at Royal Lepage this week forecast that number will be $805,000 by Q4. To buy with 5% down requires (with closing costs) about $50,000 in cash and a $750,000 mortgage. Even before passing the stress test, that necessitates an income of almost $150,000 to service the debt and ownership costs (about four grand a month). So square that with the bank finding about savings. Society has troubles, since…
…it gets worse. Add in competition because of low supply (owners aren’t selling) and demographics (Millennials are the biggest cohort, and they’re rutting), then consider sleazy realtor tactics of hold-backs, multiple bids and blind auctions and the result is a disgrace.
As detailed here a couple of days ago it appears the feds are planning to do nothing substantial to address the crisis. Maybe an anti-foreign-dude tax, but we have those already. And Chrystia may even err in throwing more gas on the fire with demand-side inducements, like that crazy shared-equity mortgage. Meanwhile the provinces are stuck, terrified and immobile, in the headlights of Covid – not even thinking about reforms such as banning blind auctions, spec taxes on flippers or requiring sellers to warranty the condition of their homes.
Besides, let’s face it. The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get, now that mom-and-pop’s restaurant or neighborhood shoe store has been driven into the dirt by wave-upon-wave of lockdowns. Have you heard a single premier or big-city mayor talking about affordability lately, even when this is the No.1 issue on the minds of most young adults? Nope. You are on your own
So, if you’re buying…
- Get pre-approved for a mortgage even before drooling over the house porn on realtor.ca
- Work with a buyer’s agent. Costs you nothing. Gives needed local knowledge. Can negotiate and advise.
- Be patient. It’s not a race. The next house will come along soon enough.
- Avoid properties listed below market value with an “offers night” announced in the MLS listing. The slimy agent for the seller wants a dogfight.
- If you view a place and are serious, go back with a home inspector. Even thirty or forty minutes on site will give you a solid indication of any major issue with furnace, electrical, drainage. Then offer.
- Make the bid conditional on financing if you have only 5-10% to put down. What’s the point of ‘winning’ a bidding war when the bank appraisal comes in low and you can’t close?
- Yes, including such a condition weakens the offer. So be stealthy and authenic. Send the owner a nice letter. Maybe some cookies. Be pathetic and emotional.
If you are the seller…
- The biggest challenge after selling is buying, since you may soon be in the same boat as those clamouring for your house. Therefore…
- Go for a long closing. After a deal goes firm this will give several months to shop for a new house.
- Offer to lease back the property you’re selling for four or six or eight months. This will give the buyer enough cash flow to carry the place and provide you time to buy.
- Make acceptance of the offer conditional upon being able to find another property within a set period of time – like a month. Yes, this is unconventional, but if some crazed, desperate Mill really wants your house, they’ll agree.
- Have some empathy. Curb your greed. Sell to the sweet young couple who put cookies on the stoop. It will be a gift for you both.
About the picture: “I would like to share a short story about our old pal Abe who was a little hooked on real estate as well,” writes blog dog John. “Abe has been put to rest having become very ill after some 14 years of life. He grew up on our hobby farm in the sticks sharing many adventures with our eldest son. Ultimately, we relocated closer to town for elementary school and he just wasn’t the same dog anymore – it saddened us. Abe was obviously in love with the real estate more than us! So, we called the new owner and asked if he wanted some company. A little while later, Abe was back ‘home’ and lived out the remainder of his life there. We formed a strong friendship with the new owner which we enjoy even after Abe has passed away. Here he is patiently waiting at the end of the driveway while the mail was retrieved from the roadside.”
158 comments ↓
Excellent advice as per usual, Mr. Turner.
Abe looks like a good ol’ boy that humans can only be so blessed to know.
Abe looks a lot like “Old Yeller” (Still brings a tear to the eye.)
The longer this Real Estate shell game continues…..the worse the final reckoning will be.
Price Insanity.
To paraphrase the old Gipper saying :
Tear down this real estate market Mr. Trudeau !
Garth, there is no end game to this.
My chart of prices in $CAD and $USD for Single Family Detached Houses in Vancouver, Toronto and Calgary with FX and Crude Oil Notations:
http://www.chpc.biz/canadian-housing-in-usd.html
SFDs are 20% cheaper if purchased in USD vs CAD (March data)
They were 28% cheaper in FEB 2016 and at the MAR 2009 Pit of Gloom, prices were 21% cheaper in USD
As recorded in the chart when the price of oil drops, housing prices eventually follow.
#154 Doug in London on 04.13.21 at 10:54 am
@IHCTD9:
Well, someone here actually gets it. To keep the Canadian economy going by inflating the housing bubble and driving prices up, up, up is like curing hypothermia by drinking alcohol…
*****************
Alcohol cures hypothermia. Got it, thanks.
The key to happiness is to stop reading after you hear what you want to hear.
And whistle Gun’s and Roses patience while buying..
#139 BillyBob on 04.13.21 at 7:03 am
“At some point countries are going to have to make a choice and take a stand over where their loyalties lie. Not support the status quo just so they can get a cheaper garden hose at Walmart.”
————————————
Do you not find it odd that we have been conditioned to think it is up to us as individuals to a make collective decisions on trade morality. It is clear that a majority of Canadians would support moving our trade away from China as a National Policy (and also not participate in Olympics games in a host country practicing genocide).
But something is fishy in Canada. The attachment our establishment has to accessing China is too strong therefore our popular general distaste of China has no influence National Policy. On no other issue can you blatantly see the conflict between community Public sentiment and the interests of the Establishment in Canada.
Our established elite desperately want access to China and are willing to sell out our morality, tolerate hostages, let other democracies fall (Taiwan) and hollow out all our manufacturing jobs. It is clear there are those among us whom serve no interest but their own. Our Pez dispenser of woke morality , Justin Trudeau is conspicuously silent.
https://www.politico.com/news/2021/04/13/canada-halifax-security-forum-taiwan-award-481101
Did we not learn in 1939 that appeasement and weakness only promotes contempt.
….and yes the rest of the world is beginning to wonder at the wokeism in the western militaries.
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm”. – Winston Churchill
#128 Farm Wife on 04.12.21 at 9:33 pm
https://edmonton.ctvnews.ca/beaver-county-resident-faces-62-000-fire-fighting-bill-1.5382626
Beaver County resident faces $62,000 fire fighting bill
— What I was getting at a while ago on here. How to force people out of the rural areas and sustainability, and get them into the UN Smart Cites – stacked with condos? Insurance denial. And/or cutting rural services (First Responders).
—– Ontario closing schools for in person learning ‘indefinately’. The longest lockdown is in place to facilitate all of this and more:
https://www.governor.ny.gov/news/amid-ongoing-covid-19-pandemic-governor-cuomo-announces-collaboration-gates-foundation-develop
— Listen to Freeland as they say “Covid has created a window of political opportunity”. Sure did. Global rollout as per our PM. 2030 lads, 9 more years.
https://twitter.com/inklessPW/status/1381277106177335303
—- Yup this WW3 is for our MINDS.
.Canada facing growing radicalization risk over COVID-19 lockdowns: (globalnews.ca)
“I wish God was alive to see this!”
Homer Simpson
So, if you’re buying,
Forget that part of the post! Garth is right but you will be wasting your time best to go away and wait sellers will not consider offers with conditions. Why would they?
“By the way, the average house in Canada now commands $680,000. The humpers at Royal Lepage this week forecast that number will be $805,000 by Q4. To buy with 5% down requires (with closing costs) about $50,000 in cash and a $750,000 mortgage. Even before passing the stress test, that necessitates an income of almost $150,000 to service the debt and ownership costs (about four grand a month).”
-Garth
***************************
And here I am looking at the virtual palaces that cost less than half that in SEA.
Can;t wait for my turn at the jab so I can flee the insanity.
Back in ’87 is a huge pyramid scheme was circling ontario- I had friends and relatives getting in on it and some made good cash – BUT once it peaked the party was over and many were left with nothing
Just to revisit a small topic from yesterday in case you are an AC shareholder or an AC consumer.
#157 Ponzius Pilatus on 04.13.21 at 11:08 am
#151 Sail Away on 04.13.21 at 10:24 am
Oh no. The nationalizing continues with Air Canada:
https://ca.finance.yahoo.com/news/air-canada-gets-billions-loans-232229458.html
Nothing good can come of this.
—————————-
Of course, there is.
IHTCD9 will finally get a refund for his cancelled vacation last spring.
And there are some people, like me, who think deregulation has gone too far, with consumers being treated like cattle
***************************************
… and don’t forget these other government driven decisions:
“Air Canada also agreed to a number of commitments including resuming regional routes, protecting jobs and keeping its aircraft orders”
Can we hope this doesn’t mean flying empty aircraft, employing more people than necessary and purchasing aircraft not required?
I’m not joking if I say we should build tent farms.
Have a plot of land that you can buy cheaply from whatever government, and stake out the primary residence.
Then pitch tents for all your offspring.
Need to figure out how to heat them in the winter though.
I can’t solve all the problems.
“Besides, let’s face it. The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get, now that mom-and-pop’s restaurant or neighborhood shoe store has been driven into the dirt by wave-upon-wave of lockdowns. Have you heard a single premier or big-city mayor talking about affordability lately, even when this is the No.1 issue on the minds of most young adults? Nope. You are on your own”
And to think, all these woefully ignorant Canadians have walked along side their owners, very proud of their Maple Flag collar and leash (peering at you Eastern Canada) believing the Establishment was there to look after them and make sure they lived the best life possible. Canadian socialism or “the third way” was the pinnacle of our humanity’s social progression….wasn’t it??
Absolutely pathetic! Everyone on this blog believes they have hedged themselves against the forthcoming collapse, even you “untouchables” on here are in for a very big shock.
Live by the (bloated, contemptible system of socialism that serves the ponzi scheme), die by the (bloated, contemptible system of socialism that serves the ponzi scheme).
It’s really simple. It’s just hyper-inflation. Houses are the first thing to experience the surge. Seeing high-tech salaries leap upwards in the same trajectory, similarly to plywood & corn.
Garth, I like that lease back idea. It could even give an opportunity for the seller to wink at the bag holder when the keys are handed over to an owner who may be underwater by then. Yikes.
#163 crowdedelevatorfartz on 04.13.21 at 1:13 pm
Unless Faron gets snarky.
—
I reserve my snark for those who can spell segue correctly.
Trains are cool though. Even have hybrid engines and are prone to 100% electrification.
Queue Nonplused to inform me where the GWh would come from.
Full disclosure, I needed Firefox’s auto-correct to get segue right. My attempts were valiant tho.
Ignominy. Love it. Another addition to my vocabulary.
John and Abe must own a 4×4 Tractor and a plow from the looks of it. I think I can just see the house in this pic, and maybe the outline of a VW or Tahoe parked out front :).
If you are a seller – the other option is to sell, invest the proceeds and rent a nice place.
@#19 Faron.
“Full disclosure, I needed Firefox’s auto-correct to get segue right. My attempts were valiant tho.”
+++
My self imposed dyslexia knows no bounds.
I was very confused when the Book ” Real Men don’t eat Quiche” first hit the best sellers list.
In my speed reading mania.
I thought it was “Quick”.
Took a while to stop scratching my head as to why real men didn’t eat quick…….
When will interest rates rise? This blog was chanting that for a decade, at least a broken clock is right twice a day…
Who got the jab? Did yawl line up for the JnJ vax?
You didn’t read the fact sheet where it clearly states it’s simply experimental medicine?
You weren’t duly informed to give consent?
Well now yawl just sit down and take it, because the vax makers got immunity.
Let that simmer, because whatever jab yawl got, you got no clue what problems it might cause you down the road…
#68 wallflower on 04.12.21 at 5:01 pm
To:
#15 household built on 04.12.21 at 1:43 pm
In response:
15 years ago I put some money into an equity fund and it almost doubled every 6 years. If your brother is not stupid, he did the same and is now ahead of you on net worth.
So, I think you are trying to tell us that you are a one-asset investor, which is precisely what this blog is all about:
NOT BEING A ONE ASSET INVESTOR—-
One-asset-investor or not (which i’m not),,, my rent cost has gone down and continues to go down while your rent continues the upward climb – buy the house and establish your rent cost and year after year watch your rent cost go down,,, and with time, begin to invest in other more liquid assets…
What a lovely story about the dog, thanks for sharing
Laughably, the bank discovered those saving up to buy a house are putting away an average of under $800 a month (GTA detached prices are increasing by $31,000 monthly).
———
Nice! My B&D portfolio increases more per month than a GTA detached increases per month. No leverage involved. Spread throughout various currencies worldwide and asset classes. Kanaduh going plop? Apparently, not a problem.
Grow B&D! Grow!
Laughably, the bank discovered those saving up to buy a house are putting away an average of under $800 a month (GTA detached prices are increasing by $31,000 monthly). The average saved is but $42,000. Four in ten have managed to set aside $25,000 or less. This is not going to end well.
____
That really is a laugh! 31K/mo. LOL. A couple years back I would have ripped some new ones in a subtle fashion, while advising the good folks of Toronto to smarten up and move out to the good life here in the sticks.
So much for that one, as of right now there’s a house down the road listed for 1.7 Million. Nice place, but not that nice. Maybe a bit less than half that nice.
Trudeau sat on his hands till prices went loopy and the OSFI began having nightmares. So what’s he do now? Sit on his hands some more. Good plan.
So, get ready for a house price super-volcano over the next couple months, and when the average sfd in Canada costs 800 grand – remember to thank the Trudeau Liberal Party of Canada for your [email protected], rent till death, Canadian existence.
Let them all live the mini van lifestyle we had as their parents 30 years ago.
What a bunch of idiots they are to pay us parents a premium for them to relive their youth!
A generation of no minds!!!
What a circus Canada has become thanks to corrupt politicians! We are quickly becoming the laughing stock of the world!
A note about financing conditions: A financing condition typically gives the buyer a period of time (maybe 5 or 10 days – whatever) to obtain financing. The bank, however, does not typically complete an appraisal until close to closing. If the sale price is more than the bank’s appraisal then they may require a larger downpayment. A financing condition will not protect you in this scenario because it will need to be waived without the bank having done an appraisal.
Pretty simple here the way I see it: “Devil’s advocate” view
1) Young people don’t really vote so of course the politicians don’t care
Corollary: if they do, they vote idealistic so NDP or Liberal who want more state ownership vs. private
2 ) Canada is really aligning with the world where 1st tier city ownership is out of reach of the working crowd ,irrelevant that our Tier1 is a Mainland Chinese Tier 2 or 3.
3) Not so fast ,the demise of Full time WFH will bring cities back into focus with the RE prices following the demand: up
Note to the idealistic: Hybrid model means 3-4 days in the office, 1-2 days at home , see latest move from Google,Microsoft etc.
4 ) Inflation real or concerned will make RE the safe play
5) Property ladder :younger people with no children will learn that a studio they own is better than being kicked out every 6 months
Yes a reset will come, not as much as people hope and won’t last long.
Canada doubled the US in new Covid cases yesterday per capita.
Oh my… and we’ve already reached peak deficit…
Garth, the T2 gang are screwing up and sending millions into poverty by their actions or inaction on housing crisis. Is it possible to sue them? What can the average Joe do other then keep saving and stay away from the market?
Besides, let’s face it. The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get, now that mom-and-pop’s restaurant or neighbourhood shoe store has been driven into the dirt by wave-upon-wave of lockdowns. Have you heard a single premier or big-city mayor talking about affordability lately, even when this is the No.1 issue on the minds of most young adults? Nope. You are on your own
We are on our own. We need cheaper housing. Cheaper housing is affordable housing. Families in affordable housing are in a better position – they make better decisions, they’re better able to care for themselves, to prepare for the future by saving for education or retirement. Society as a whole is better because it has more money to invest in productive endeavours. Some which come to mind are development of vaccines, development of oil infrastructure, development of mineral extraction.
The housing bubble reflects a lack of ideas – we cannot think of anything better.
Provinces may be “stuck…in the headlights of Covid”, but the industry is governed by provincial real estate acts that stipulate professional standards. We can’t blame the Feds for blind auctions or crooked agents.
But the provinces put up with it, along with money laundering and simple tax evasion (rent? what rent?) that permeates residential housing. Local and provincial governments’ dependence on real estate revenues create just as much market distortion as any real estate association, but they’d never admit it.
Home are still affordable, just not in Canada. Look for an exodus of moisters to join the tens of thousands of young Canadians who have already left for better opportunities in the US.
Crix on 04.13.21 at 3:01 pm
Let that simmer, because whatever jab yawl got, you got no clue what problems it might cause you down the road.
————————-
Hey Crix: you got no clue what getting Covid and problems it might cause you down the road.
1 in 3 hospitalized patients have neurological problems down the road. Read the scientific data.
Well, my wife and I are vaxxed. Her with Pfizer in Hawaii before flying home, me with Moderna in BC a few weeks ago. For me, it was nothing to do with age or priority but rather a client who had spare vax and wanted their team all done. Sort of funny since I personally don’t care in the slightest. Got a headache for a few hours.
I own a house and do not intend to move so I am not pressured with this housing nonsense.
But my children are .
My advice to young people: Their future is not in Canada.
Jobs pay more in the USA, houses are cheaper and taxes are less.
If you stay in Canada , you will have the backlash of the increased taxes due to this Covid spending spree of Mr. Blackface.
Get out while you can…
If your Realtor is trustworthy enough, you could get them to draw up a buyer contract with an absolute upper bid limit, plus a clause authorizing them to bid only $5K above the highest offer received by the seller.
Nice to witness the verbal realization that nothing will changes, and that any glimmer of hope – like diddling with the stress test – is pure optics as nobody wants cook the golden goose. Just check that oh so impressive policy intervention onto the stack of past failed federal interventions, because after 10 years of them, there sure is a bonfire rip roaring!
Prices get higher. Rates stay low. A flood of cash sits on the sidelines. A flood of people waiting to buy. Increased social and financial stratification. The decimation of the middle class. Brazil is around the corner. But meh, people have their granite countertops and back yards now, so no need to worry about the peons…
Why do we allow realtors to make $50K for selling one house? They are grossly overpaid and the buyer is paying for this. What value do they add? How long does it take to become a realtor? 3 months?
Why would you even offer advice for someone stupid enough to buy in this overheated market? What kind of message does this send?
Years ago, I told people to invest in Vancouver/Lower mainland area houses.
Why? Because of mass immigration.
Now, even houses 150km from Vancouver are going for well above a million dollars.
Two tiered society is here. Renters and Owners.
Lifetime of wages won’t pay for a house now. Ever again.
On the flip side, housing is too big to fail now. They will inflate out of this. Or backstop it at all costs.
Winners: homeowners.
Plus Liberals just voted to stop any increase in capital gains tax on housing.
Choose your side quickly in the nee 2 tiered society. Because massive rent increases are just around the corner.
For those young wanting to leave Canada:
Note that your government actively lobbies other countries to prevent offering immigration programs for our young. They don’t want a mass exodus of our young while at the same time indenting them for life.
Either we keep the young brainwashed or they wake up.
#34 hwy_str on 04.13.21 at 3:22 pm
Garth, the T2 gang are screwing up and sending millions into poverty by their actions or inaction on housing crisis. Is it possible to sue them? What can the average Joe do other then keep saving and stay away from the market?
————
Think bigger because suing the feds just means your taxes go up to pay for any settlement.
Many are saying it’s time for reparations from China given their failure to uphold international law and legal obligation to prevent the spread of an epidemic across borders.
https://www.lawfareblog.com/does-china-really-owe-world-trillions-dollars
You can’t just blame it on the Feds. Corrupt Cristy Clark and Rich Coleman are going to take the stand on a money laundering inquiry. Yes, finally! Coleman buried a report on money laundering at Vancouver casinos. The former finance minister Mike Dejob has eight investment properties! How could he buy eight properties in BC on his salary? Won’t it be great if these weasels have to testify under oath?
what do you say about this?
https://www.bloomberg.com/news/articles/2021-04-13/scotia-s-lawrence-sees-role-for-banks-in-canada-housing-crunch?srnd=premium-canada
#40 Annek on 04.13.21 at 3:41 pm
I own a house and do not intend to move so I am not pressured with this housing nonsense.
But my children are .
My advice to young people: Their future is not in Canada.
Jobs pay more in the USA, houses are cheaper and taxes are less.
If you stay in Canada , you will have the backlash of the increased taxes due to this Covid spending spree of Mr. Blackface.
Get out while you can…
______
Pretty much. I’m not in the school of thought that pressures my kids to pursue this or that, but I do try and send some wisdom of age down the line. Like keeping your options open, not limiting your thinking, and the benefits of straying off the beaten path.
Ultimately, the kids will make their own choices and will have to deal with whatever fallout may come.
Age has given me a perspective they can’t own – like knowing just how far Canada has fallen, on so many fronts, and so quickly. Now post-Trudeau, Canada has entered into a new phase, where the less fortunate simply can’t win anymore – no matter what they do.
It may turn out that Canada is not worth the expense or headache. Like an old high mileage car climbing a long grade when the clutch disk suddenly starts slipping. You know that’s the end. It’s not worth the cost for what you’ve got after you pay the bill…
I have absolutely NO IDEA how this whole thing is going to play out, but it sure looks like a bubble this time around. Once again the time tunnel has sucked me in and shot me back to 1989. Say, is that cold fusion for real, and was it really solar activity that caused the big outage with Hydro Quebec? How’s the cleanup from the spill of the Exxon Valdez coming along? Now I’m shot ahead to Nortel going up to $120 per share in summer of 2000. Wow, I’ve experienced the thrill of parachuting and my first free fall. Say, anyone heard those new songs Wake Up To The Sun and Ariel vs Lotus by Limblifter? Both have been playing a lot on Q92 Timmins lately.
If I were one of those Millenials frustrated by house prices going up and up and up and up, I would say TO HELL with it and assume I’ll be renting for years to come if not my entire life. Take that money and invest it instead, as Garth has been telling us for years. If a crash and buyers market does come, then make your move. Otherwise forget it.
@SoggyShorts, post #7:
Yes, see only what you want to see and believe only what you want to believe.
#33 Sail Away on 04.13.21 at 3:20 pm
Canada doubled the US in new Covid cases yesterday per capita.
Oh my… and we’ve already reached peak deficit…
—
You sound happy about this. Given that cases are going up in both countries, I’d argue there’s nothing to crow about here. Wake me up when Canada’s separation in the ranking of per capita cases isn’t an order of magnitude better than the US’s as catalyzed by Trumpian idiocy. Until then, keep your vaxxed head down and listen to Bonnie. Thx.
Pro tip, when I troll, I usually call out “here fishy fishy fishy.” It almost always works.
Those of you saying to move to the usa.. . How does one do that without marriage or a specialized job or skill that allows for the move. What about the rest of us average people???? If move to the states in a heartbeat if I could
Finally, your daily dose of antifa socialism. Seattle business owner raises minimum salary to $70k and….
https://twitter.com/DanPriceSeattle/status/1382018355985588228
Funny what happens when a corp doesn’t have to siphon profits off to shareholders via dividends or buybacks.
Also, never forget that equity markets aren’t here to fund your retirement. It has worked well for 100 years for those who could put money in, but it’s not a law of nature that things operate this way.
“The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get”
This doesn’t make any sense. By pulling forward future demand and inflating every household’s debt service obligations for the next 2.5 decades, they are guaranteeing a sustained economic slowdown (probably for decades) and one mother of a recession right after this covid thing is “over”. And probably another one in 5 years when all of these mortgages renew. So they are enabling exactly the opposite of what they say they want. What are we missing?
The election cycle. – Garth
@#39 Sail Away
“Got a headache for a few hours.”
++++
I usually get those in meetings with govt officials. OR when I have to listen to Trudeau and Freeland blather on in their “pc” speech.
Next Monday should be a full blown migraine.
#31 Amanda Gibson on 04.13.21 at 3:18 pm
As a former realtor(trademark) I don’t think that is the case actually. I believe the bank does the appraisal during that time period. The listing has to be submitted to the bank to obtain financing and the bank will typically hire their appraiser to find the comparables and send them over to appraise the house. I know in the past that they used to do “drive-by appraisals” meaning they would just drive by the house and if it looked like it matched the price, the appraiser would approve it. That stopped after a while because of what was happening back in about 2009-2010 but it looks like it may be happening again!
A financing clause was about 5 to 10 business days so that this could be done by the bank.
What banks will usually do is another credit check on the buyers one week before closing so I used to advise my buyers not take out another credit card or finance a car or finance furniture, etc, until after the sale closed and the seller has the money in their bank because if your TDS ratio changed, the bank could pull your mortgage. After that, go nuts I said!
You’ll have to pry the door knob from my cold dead hand. Boomer’s are going nowhere. Where’s the poll (got it right this time) to confirm my guess?
$6 billion to Air Canada ( HQ in Montreal)
Snubbing a Liberal Democracy.
https://vancouversun.com/news/politics/ambassadors-opposition-denounce-shameful-liberal-posture-toward-china-following-taiwan-report/wcm/9384a5b9-7ea5-45d1-8c24-dfb975b29606
What other faux pas can the Trudeau govt do in the week before the long awaited budget?????
#24 Crix on 04.13.21 at 3:01 pm
Did yawl line up for the JnJ …
…..It’s spelled y’all.
Great suggestions for the buyers Garth! I would like to add one more: ask if the house was a crime scene in the past year.
Just heard of a new townhouse for sale an hour from Toronto that apparently some tragedy took place in recently, now for sale for 740k. These houses were sold by the developer last year for around 550k. I thought these type of things would get you a discount. Or maybe this is the discounted price?
Agreed with the advises for buyers.
But on this one: “Make the bid conditional on financing if you have only 5-10% to put down”, I’d say always make it conditional on financing if you are taking any financing.
If you don’t get this deal, another house will come. But if you sign an unconditional and then can’t get the mortgage and lose your deposit .. not only this deal falls apart, but you weaken your position for the next deal because you have less money left.
Advises for sellers .. not sure I agree with this: “Offer to lease back the property you’re selling for four or six or eight months.”
That turns the former owner into a tenant. Modern tenancy laws heavily favor the tenants. As a buyer, I wouldn’t go for that. What if I have sold my old house and need to move out of there, but my temporary tenant refuses to move out because they can’t buy what they like? That would put my family in a strange position.
And this: “Make acceptance of the offer conditional upon being able to find another property within a set period of time – like a month.” That’s even worse, IMO. As a buyer, I can’t know what my seller is doing to find their new house. So, in practice it means “the seller can terminate the deal for any reason, but the buyer is committed”. Don’t think I would be eager to sign as a buyer.
Clearly a significant percentage of the 550,000 home sales and purchases made by Canadians in 2020 were driven by the opportunity to upgrade accommodation or for older homeowners to downsize.
Approximately 200,000 newly constructed dwelling units were purchased in 2020 and approximately 250,000 units were purchased by first time homeowners.
Based on historical averages we can assume that a majority of the 350,000 existing homes sold in 2020 involved the purchase of another home. At the top end of the market a small percentage of sales saw the seller exit the Canadian housing market.
We really have very little information on the number, or the size, of the purchase and sales chains that occurred in 2020. The decision to sell a $300,000 condo could lead to the purchase of a $600,000 home that could lead to the purchase of $1,000,000 home. The seller of the $1,000,000 home could decide to purchase $500,000 condominium, move into a retirement home, or leave the country.
Every year the owners of thousands of units pass away and their units becomes part of an estate.
All of these variables that we know very little about are connected to the demand for, and the supply of, homes across Canada. We are making general assumptions about the future of the Canadian housing market without a complete understanding of how the market actually functions.
As the price of homes across Canada increases the ability of first time home buyers to enter the market is reduced and reduction will have an immediate impact on the front end of all purchase and sales chains that are driving the current escalation of average prices.
All we know for sure is that the majority of purchase and sales chains in Canada start with first time homebuyers and the average income of this important sector of the market must increase if current prices are to be maintained.
This should become a priority of all governments.
I thought Canada has a charter of rights and freedoms?
History repeating one last time? Your taxes at work?
UN Agenda 21? The great reset? That type of world do you want your family walking up in? Will there be anyone left to help when they come for your family?!
“You’re here for freedom, not to rip down a fence”: Protesters gather at GraceLife Church 18min.
https://www.bitchute.com/video/JNK-XL5HgEw/
Do you want Canada to be like the CCP very soon?
How Does China’s Social Credit System Works 19min
https://www.youtube.com/watch?v=PVkWokLqPOg
It looks like Canadians are number 1 in the world at something. This is a test mate of Canadian’s general lack of financial acumen. Real Estate is what Canadians know how , to do well, or at least that’s what they think.
https://www.youtube.com/watch?v=iH6WldfzsZY
#31 Amanda Gibson on 04.13.21 at 3:18 pm
“The bank, however, does not typically complete an appraisal until close to closing.”
—
Yes, but then you can approach the seller and ask for an extension of a few days. Many sellers will agree, because they have just turned down other bidders, and would rather wait a few days than start the whole process over.
If they don’t agree .. then you lose the deal, but at least you have protected your deposit.
Fifteen days to flatten the curve:
17 March, 2020
393
days ago.
I see Chrystia is going for the jerry can option. *face palm*
With the most sarcasm that the world has ever seen, why doesn’t Chrystia introduce 250-yr amortizations, to, you know, “make housing more affordable”?
What could possibly go wrong? Idiots!
#55 Mark on 04.13.21 at 4:36 pm
“The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get”
This doesn’t make any sense. By pulling forward future demand and inflating every household’s debt service obligations for the next 2.5 decades, they are guaranteeing a sustained economic slowdown (probably for decades) and one mother of a recession right after this covid thing is “over”. And probably another one in 5 years when all of these mortgages renew. So they are enabling exactly the opposite of what they say they want. What are we missing?
The election cycle. – Garth
—————————————————
All sounds about right but nobody is listening.
Abe obviously embraced ‘there’s no place like home’. His people will get a good review from the doggie judge:)
On the ‘when life hands you lemons’ front, seems to me that the folks saving to buy still have savings. Which could be put to good use either by beginning a B&D portfolio if they haven’t done that already or if that is too scary then at least making RRSP or TFSA contributions. Though I must say given how insane buying RE is right now I find it highly ironic how many of those willing to buy RE say buying stocks is ‘too risky’.
I thought it was bad in ’87 when I bought my first place from a builder. I had to provide a certified cheque for 5k just to get 30 minutes in a dingy trailer to put a green dot on a map.
While I would never buy someone else’s house without conditions unfortunately FOMO has infected common sense today. If you’re a buyer in the big smoke and you include any conditions right now you will lose the deal. Don’t even bother showing up.
#67 drydock on 04.13.21 at 5:23 pm
You sound like a kid who was riding to the store with the parents for a promised ice cream cone but was involved in a horrible car accident yet continues to beg for the ice cream. But, but, I was promised…. waaaaa.
#55 Mark on 04.13.21 at 4:36 pm
“The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get”
This doesn’t make any sense. By pulling forward future demand and inflating every household’s debt service obligations for the next 2.5 decades, they are guaranteeing a sustained economic slowdown (probably for decades) and one mother of a recession right after this covid thing is “over”. And probably another one in 5 years when all of these mortgages renew. So they are enabling exactly the opposite of what they say they want. What are we missing?
The election cycle. – Garth
——————————————
That was funny! Thanks Garth.
On a side note you forgot about the bank of mom and dad. The kids don’t need more than about $25k and their parents foot the rest. Then the kids can show their parents how to order cat food through Uber Eats. Win win!!!
@ #44 Dave
Why would you even offer advice for someone stupid enough to buy in this overheated market? What kind of message does this send?
********
Thanks Dave for saying what I was thinking….
Forget “offer night” as a realtor wanting a dogfight; he/she/they have just thrown chum in the water amidst a gathering of sharks and you’re lucky to escape with your life!
#49 Sam
Lawrence wants CMHC to back loans to builders. They find it too risky to finance builders without government guarantee.
Canadians have done this to themselves, there’s no foreign dude to blame for this mess!
#44 Bk on 04.13.21 at 4:26 pm
Those of you saying to move to the usa.. . How does one do that without marriage or a specialized job or skill that allows for the move. What about the rest of us average people???? If move to the states in a heartbeat if I could
******************************************
If you have some marketable skills you’re probably better off in the USA. If you don’t, better to be poor in Canada.
#6 Brian Ripley on 04.13.21 at 2:06 pm
Nice chart.
Calgary does not appear to be very bubbly except for the big move circa 2006.
It took me a while to figure the US/CAD line because it is inverted to what I’ve usually seen, ie. I would think that $1 CAD is worth $0.80 USD rather than $1 USD is worth $1.25 CAD although both are the same thing. The USD is usually the default on the websites I go to although usually there is an option to chose other currencies.
DT Van, Got a call while in Costco yesterday, Landlord putting this place up for sale, asked if I was interested ?
Not interested but asked, How Much? A: $888,000 but expecting it to go low 900’s. Uhhhh No thanks.
Don’t blame them for selling, smart move, they are in San Francisco, time to harvest profits before PM Mensa and his loyal Midget FM’s new budget.
Been here 7.5 yrs and added over $1 million to the B+D portfolio.
We have over 2.2 M invested and also bring in 110k in wages/pensions and I wouldn’t touch this hot mess with a barge pole, the clueless can blow their brains out. Ill rent.
Here is some simple math to the “foreign buyers” conspiracy theorists:
If foreign buyers account for let’s say 4% of purchases in Vancouver in a given year, in just 12 years they will have purchased 48% of the houses. But that assumes they don’t sell, which I think is a dubious assumption. I am not sure why they wouldn’t buy and sell for the same reasons as locals.
And with immigration running at around 0.9% of population (2019) I don’t see how foreigners could be buying up 4% of the market unless they are all headed for Vancouver. Which could be the case, the weather kind of sucks everywhere else.
*Note to Garth, I’m not sure you’ll let this one go, due to topic, based I what you have said? delete if you must. If it goes, perhaps delete these top three line.
Hi #46 TRT, re: For those young wanting to leave Canada.
This guy is leaving England soon he says at the end but for other reasons.
DR. YEADON. 50min interview with him.
https://www.bitchute.com/video/KKOtC1OaH04E/
#52 Faron on 04.13.21 at 4:24 pm
#33 Sail Away on 04.13.21 at 3:20 pm
Canada doubled the US in new Covid cases yesterday per capita.
Oh my… and we’ve already reached peak deficit…
—
You sound happy about this. Given that cases are going up in both countries, I’d argue there’s nothing to crow about here. Wake me up when Canada’s separation in the ranking of per capita cases isn’t an order of magnitude better than the US’s as catalyzed by Trumpian idiocy. Until then, keep your vaxxed head down and listen to Bonnie. Thx.
Pro tip, when I troll, I usually call out “here fishy fishy fishy.” It almost always works.
__________________________________________
Wakey, wakey Faron. You’d think that a fart smeller like yourself would have checked his facts before opening his yap. Or perhaps its just the tiny, dbrain at work not able to do simple math!
Two numbers of the same order of magnitude have roughly the same scale. The larger value is less than 10 times the smaller value. US cases are 4 times that of Canada, so NOT an order of magnitude as you indicate. I presume we can agree that we are working with “base 10” math.
Pro tip, when you get on your high horse and make ridiculous comments like this, you might want to check the facts before opening your yap and embarrassing yourself in front of the steerage section.
Sail Away – Won, Faron – Zero
** facts courtesy of Worldometer for April 13th
This post was edited. – Garth
#56 crowdedelevatorfartz on 04.13.21 at 4:37 pm
@#39 Sail Away
“Got a headache for a few hours.”
++++
I usually get those in meetings with govt officials. OR when I have to listen to Trudeau and Freeland blather on in their “pc” speech.
Next Monday should be a full blown migraine.
———
At least you can admit you’ll be breathlessly riveted to every word they say. Did you buy a crateful of Tylenol/Advil/generic brand from Costco for the occasion?
And then, you’ll come here and tell us all about.
Admit it. You know you will.
I don’t know what happened to my previous message, but this is a terrible post. What the h#*l happened to Garth? Suggesting ways to buy into this market is insane.
People will buy regardless of your sentiment, or mine. They might as well go into the fight armed. – Garth
#9 Dogman01 on 04.13.21 at 2:12 pm
“Do you not find it odd that we have been conditioned to think it is up to us as individuals to a make collective decisions on trade morality. It is clear that a majority of Canadians would support moving our trade away from China as a National Policy (and also not participate in Olympics games in a host country practicing genocide).”
What about the Iraq war? Or Yemen? Or Libya? Eastern Canada still buys a lot of oil from Saudi Arabia, not exactly a bastion of democracy and human rights. What about our own history with the natives? I mean I know the British stole the land fair and square but I don’t think the natives saw it as “fair treatment” at the time. I’m pretty sure they still don’t.
Fact is the world is a sucky place. And it is all about the Benjamins. No sooner than Trump left office taking MAGA with him Ford announced they were moving more production to Mexico.
We are in a tough spot with China and Saudi Arabia because the world economy has become deeply reliant on both. Meanwhile we can’t get an oil pipeline built between Alberta and Ontario because Alberta oil is too “dirty”. It isn’t made from blood though, which is something all the moralizers out there should maybe consider.
The fact is that big business never met a dictator they didn’t like as long as it was in their own financial interest.
#72 Faron on 04.13.21 at 5:42 pm
#67 drydock on 04.13.21 at 5:23 pm
You sound like a kid who was riding to the store with the parents for a promised ice cream cone but was involved in a horrible car accident yet continues to beg for the ice cream. But, but, I was promised…. waaaaa.
/////////////
I see why everyone hates you Faron.
BTW you sure have a lot of mood swings, one day you want to be all chummy and the next you are a complete idiot.
Do you see a professional for these disorders?
I like today’s photo of Abe. It reminds me of the one taken of Bandit a few years back, prior to the move to Nova Scotia. He was lying on a country road with the same ‘not a care in the world’ expression Abe has on his face. It was one of my favourites.
I like the country too. You can see the stars at night, and the absence of white noise asssociated with various commercial city apparatus is like a tonic. Birds calling to one another, some small breeze that blows a few leaves around. And real honest to dog quiet. That’s worth more than any real estate bragging rights.
All this nonsense that surrounds me, but I remain optimistic..
I can’t see the stars from this Calgary location, but I can feel the planets lining up. Bigly.
#54 Faron on 04.13.21 at 4:34 pm
Finally, your daily dose of antifa socialism. Seattle business owner raises minimum salary to $70k and….
https://twitter.com/DanPriceSeattle/status/1382018355985588228
Funny what happens when a corp doesn’t have to siphon profits off to shareholders via dividends or buybacks.
Also, never forget that equity markets aren’t here to fund your retirement. It has worked well for 100 years for those who could put money in, but it’s not a law of nature that things operate this way.
—————————————————————–
Very interesting. Do you know how he came up with a min salary of $70k? Seems to me that it would be based on a combination of the value that employees create and a living wage.
It shows that it’s not a losing strategy to pay employees well.
Companies there to make a profit, so the argument on increasing salary needs to have company profit as the reference frame.
Those involve in the bidding wars must be crazy and the banks and government must be crazy to let them get away with driving the price of a necessity of life beyond reach of the working man. This situation will not end well.
A restoration of sanity and morality to people and markets is needed.
Current real estate markets smells like a classic blow off top.
This mania will not last past summer. Batten down your wallets, self medicate your house-porn lust, and avoid the realty industry induced fomo syndrome.
Like an infected kidney stone – this too shall pass, but with helluva lot o’ pain.
Watched an interview with that Adam Vaughan yesterday, what a do nothing, low life.
All but admitted that it’s an unacceptable scenario to have house prices fall a measly 10% while standing on the sidelines shrugging shoulders while they go up 25%.
Sleazy realtor tactics and a govt that has no other actual economy? It’s in the interest of both to see this idiocy continue unabated. Of course the banks pay a little lip service from time to time but hey, business is business. I am sad for my two daughters, 17 and 20, just starting out. They are not even launched yet but they have no shot at ever owning anything.
https://www.bttoronto.ca/videos/cnn-host-jake-tapper-called-out-canada-for-its-vaccine-rollout/
> minute 3:00
CNN Host Jake Tapper Called Out Canada for Its Vaccine Rollout
https://torontosun.com/opinion/columnists/lilley-trudeau-liberals-always-viewed-the-pandemic-as-opportunity
– Sock Boy is desperate for a majority. Shall silly Canadians oblige ? We Canadians that feel holier than thou US neighbors… If we continue on this path we’ll have Greek style austerity. Did you hear there’s a ton of money in CPP investments. How enticing to Freeland
The warning signs , the FOMO, the horrible monetary policies, the planned inflation, the shrinking value of our dollars. If you need a house then ok go for it I guess, make your bed. if you don’t there are far better places to invest.
Tomorrow one of the biggest IPO’s will happen , Coinbase. I’m not saying you should bother with buying it, not at all. However a new world is exploding out there. Why is Bitcoin at $63K ? Its a bubble you say ?
The world of finance is flipping right in front of people’s eyes for so many reasons and is a far better place to put excess capital than trying to buy some over priced shack being sold by shady real estate agents.
#19 Faron on 04.13.21 at 2:36 pm
Garth, I like that lease back idea. It could even give an opportunity for the seller to wink at the bag holder when the keys are handed over to an owner who may be underwater by then. Yikes.
#163 crowdedelevatorfartz on 04.13.21 at 1:13 pm
Unless Faron gets snarky.
—
I reserve my snark for those who can spell segue correctly.
Trains are cool though. Even have hybrid engines and are prone to 100% electrification.
Queue Nonplused to inform me where the GWh would come from.
Full disclosure, I needed Firefox’s auto-correct to get segue right. My attempts were valiant tho.
————————————-
Alright, queued as I am;
Almost all locomotives are already electric, even the ones that belch out diesel exhaust. The “transmission” in a typical locomotive engine consists of a generator and then electric motors at the wheels. So the trains are already “electrified”. Has been that way since the end of the steam age. It wasn’t diesel that ended steam because towards the end of the steam age they were using diesel or fuel oil to make the steam. It was the electric transmission that ended steam.
The problem is the torque required to get a 10,000 ton train moving. This is something steam could do to a point, but running it through a gearbox? No. And synchronizing the gear shifting across multiple locomotives if they all had 18 gears like a semi-tractor? No. But the electric transmission works quite well and can make a huge amount of torque, and full power at the engine when the wheels aren’t spinning yet. It can also be used to brake the train. If the locomotive was a hybrid (which I doubt, you’d need 25-50% of the weight of the train to be batteries), that would work too.
The problem in North America is that many of the rail lines are long, making it expensive to put up the overhead power cables. And there aren’t any power plants for miles on the route making transmission losses expensive and meaning several trains might be trying to get power from the same section of wire. Thus they generate the power onboard with a diesel generator.
But on the other hand Russia electrified the Trans-Siberian railway, so it can be done. Where there is a will there is a way.
Denser areas are much more economic for railway electrification. Europe and say the North West corridor in New Jersey are great examples.
And as to the question, where is the power going to come from? Well, the same sources as all the power we are going to use to charge electric cars. Natural gas, nuclear, coal, oil on occasion (peaking), legacy hydro, and a tiny sliver of wind and solar.
It could be done though. It has been done. It’s a question of what is economic and whether a bunch of diesel smoke stacks in the middle of nowhere are better or worse than a series of large smoke stacks.
If wind and solar ever become viable (which they are not), I could see increasing portions of the railway network becoming electrified. It wouldn’t take that much over-engineering to give train locomotives that have a diesel generator a power rail too, so they could run either way. Or just swap out the locomotives depending on where they are going.
#87 Penny Henny on 04.13.21 at 6:52 pm
#72 Faron on 04.13.21 at 5:42 pm
#67 drydock on 04.13.21 at 5:23 pm
You sound like a kid who was riding to the store with the parents for a promised ice cream cone but was involved in a horrible car accident yet continues to beg for the ice cream. But, but, I was promised…. waaaaa.
/////////////
I see why everyone hates you Faron.
BTW you sure have a lot of mood swings, one day you want to be all chummy and the next you are a complete idiot.
Do you see a professional for these disorders?
———
Did you want to recommend Faron someone that you see for your own anger issues? If yes, that’s very nice of you. If not, well, you’re just a crusty, angry old geezer.
Hug.
Rentals.. that’s how people afford to carry mortgages that large…
Very common strategy in the burbs..
Those who can barely afford end up renting their basements to those who cant..It’s as simple as that ..also how the gas bag keeps bloating .. also why quality of life sucks in the burbs.. a compromise that’s welcome for most… but who thinks of such luxuries these days anymore..
April 14, 2021.
The beginning of the end. When two of the largest banks, JP Morgan Chase, and Wells Fargo, report earnings on the same day.
Between these two banks, there is $5.1 TRILLION in assets, which is an astounding 23% of US GDP.
The world will be holding its breath to see those numbers because it will be a signal of what’s to come.
And when the news of the ugly chain of corporate/personal defaults and the resulting massive holes in the big banks’ balance sheet hits…
Panic will set in…
And global liquidity is going to start drying up… just like it did in 2008 when Bear Stearns and Lehman Brothers troubles became public.
And stock markets will crash in a spectacular fashion…
Hope everyone is liquid as of tonight.
14 hours from now may be too late.
Then just wait for war, Taiwan, China, Iran, Israel and USA in short order.
PREPARE
It’s funny you said that Garth. When I bought my house my son way less than a year old. The home we bought was an estate sale, first time on the market since it was built in the late 50s. The 2 sons accepted our offer (50k less than a competing off) because we wanted to make it a home and the other buyer was a known developer in the area. The 2 sons said they didn’t care about the money (both lawyers) and didn’t want their childhood home torn down. So I guess you never know.
@#84 Stoned Again
“At least you can admit you’ll be breathlessly riveted to every word they say.”
++++
Actually most of the meetings start with the bureaucrats expecting unreal deadlines to be met by their own staff and private contractors.
Their own staff sit silently as the private contractors patiently explain ( for the umpteeth time) why these 3 month jobs cannot possibly be completed in two weeks.
Usually because the self same bureaucrats haven’t ordered their promised share of the materials, haven’t applied for the proper permits, haven’t discussed budgets with superiors and then we explain their is a new problem with deliveries…Covid….who knew.
I wont be breathlessly hovering on every word….more like pinching myself to stay awake as these self important dreks drone on and on about empowerment, synergies and gender fluid policies that even they, couldn’t give two shites about….
Otherwise do would their Human Resources depts. keep expanding like mushrooms with the endless harassment, stress, etc etc etc complaint filed by their own employees that are to lazy or too bored to actually work at their assigned jobs……. the horror.
I actually had one supervisor recoil in terror when I stopped him in at his ONLY jobsite and ask a simple pointed question….. (which could have been answered in seconds if he actually knew what his job position entailed)……to which he replied, “I’m going off on stress leave tomorrow and I dont know when I’ll be back.”
I laughed and said,”Stress? You want stress? I’m in charge of 6 other jobs all larger than this and I have to juggle staff, material and timelines between all 7 jobs. Dont talk to me about stress.”
Sniveling obese billionaire children eating melting ice cream in a $400,000 Bentley have nothing on govt bureaucrats and their sense of entitlement.
#35 45north on 04.13.21 at 3:22 pm
“We are on our own. We need cheaper housing. Cheaper housing is affordable housing. Families in affordable housing are in a better position – they make better decisions, they’re better able to care for themselves, to prepare for the future by saving for education or retirement.”
———————————-
Something in the back of my mind keeps saying that housing must be affordable, because somebody is buying it.
Come to Calgary: Median house price $427,000 median family income $102,000. Tough to get that median income right now but in better times you can do it Millennials! And there is skiing and zip-lining inside the city limits!
What people in Canada mean when they say housing is “unaffordable” is that they want to live in a big house within walking distance of downtown Vancouver or Toronto. There is no housing bubble in Calgary. Hasn’t been since 2006, the year all the stock options paid out. Sure, you can spend $1,000,000 in Calgary, but look at what you get! 2 acres 30-45 minutes from downtown in rush hour. More if it snows of course.
Of course you’ll need a garden tractor if you live on 2 acres so factor that $3,000 in.
Re:Picture
You can take the dog out of the country.
But you can’t take the country out of the dog.
Same for some people.
#83 Fact checker on 04.13.21 at 6:46 pm
#52 Faron on 04.13.21 at 4:24 pm
#33 Sail Away on 04.13.21 at 3:20 pm
—
I’ll help. Note that I said “rankings”
Go to worldometer, sort by cases per million. US is 8th. What’s 10 times 8? What’s Canada’s ranking?
Admittedly hyperbolic on my part. And I’ll also note that it’s probably skewed against the US owing to more testing there and tgus more identified cases. But, the numbers work.
Cheers.
Garth, probably the best advice I have seen on the buy and sell side in a very long time. I was pumped, then I read your brief story about that cute dog, old pal Abe, forget real estate, I am now an emotional wreck — geez…
“This post was edited. – Garth”
I have often wanted to edit my posts but when I right click I get “Translate to English” as the most appropriate choice. Call me stupid but how does one edit?
#89 Stoph on 04.13.21 at 7:01 pm
#54 Faron on 04.13.21 at 4:34 pm
It’s a Seattle company, so high cost of living. $70k more than adequate. In fairness, software is a high skill and high margin industry, so comparing to, say, a grocery chain would be unfair. The interesting part is that all the righties called doom. The company boomed. Take raw greed out of the equation and good things can happen.
#87 Penny Henny on 04.13.21 at 6:52 pm
I don’t hate you or most posters here. Personally, I can view people as complex and with traits I identify with and traits personally find distasteful which is why there are very few people I have hatred toward. The only person here who deserves universal suckupitudinality, to coin a phrase, is Garth.
https://www.reuters.com/article/us-climate-change-newzealand-idUSKBN2BZ2T6
———————
After doing a pang up job containing the virus, the New Zealand government is embarking on an ambitious plan to address climate change.
Note: They actually have a “Minister for Climate Change”
————————
SYDNEY (Reuters) – New Zealand has become the first country to introduce a law that will require banks, insurers and investment managers to report the impacts of climate change on their business, minister for climate change James Shaw said.
#37 Alberta Ed on 04.13.21 at 3:29 pm
Home are still affordable, just not in Canada. Look for an exodus of moisters to join the tens of thousands of young Canadians who have already left for better opportunities in the US.
#40 Annek on 04.13.21 at 3:41 pm
My advice to young people: Their future is not in Canada.
Jobs pay more in the USA, houses are cheaper and taxes are less.
If you stay in Canada , you will have the backlash of the increased taxes due to this Covid spending spree of Mr. Blackface.
Get out while you can
_ _ _ _ _
Yup, already starting. One of my friends in her 40s moved to the U.S. for a highly creative and specialized STEM job. Its closest counterpart in Canada pays 10x less than what she earns.
In turn, her genius son is gunning for M.I.T., Oxford or Ivy League schools. He wants to cure cancer or lead a team in outer space one day. Either way, he’s not planning for a career in Canada because salaries aren’t keeping pace with the cost of living here.
Canada is losing highly intelligent and talented people who can innovate and lift the world to great heights. Which is sad, because I think most Canadians want a society full of these people, and could greatly benefit from these people…but all those people are now smart enough to leave.
Adam Vaughan, Canada’s “Secretary of Housing”, on BNN:
https://www.bnnbloomberg.ca/video/we-need-to-curb-offshore-capital-into-canada-s-housing-market-adam-vaughan~2179864
93 Diharv on 04.13.21 at 7:17 pm
Sleazy realtor tactics and a govt that has no other actual economy? It’s in the interest of both to see this idiocy continue unabated. Of course the banks pay a little lip service from time to time but hey, business is business. I am sad for my two daughters, 17 and 20, just starting out. They are not even launched yet but they have no shot at ever owning anything.
——————————————
Really? You mean you didn’t arm your children with the knowledge on how to overcome this situation? Don’t blame realtors or government or anyone else for that failure. You didn’t do your job. But don’t despair…there’s still time for you to fix your oversight. Hop to it and get it done.
P.S. I’ll let you in on the big secret! Owning stuff doesn’t make you a somebody.
#92 mark on 04.13.21 at 7:07 pm
Watched an interview with that Adam Vaughan yesterday, what a do nothing, low life.
All but admitted that it’s an unacceptable scenario to have house prices fall a measly 10% while standing on the sidelines shrugging shoulders while they go up 25%
_ _ _ _ _
I found the interview hilarious! But mainly because I was reminded that many politicians have made an art out of talking a lot, in a nice and reasonable tone, but saying nothing of substance or value.
Yeah, Adam Vaughan just wants to get re-elected, which is why he was “fence sitting” (as Steve Paikin rightfully called him out for doing), saying things to try not to offend homeowners, and blaming provincial governments for the real estate mess. Sigh. How predictable…but still, disappointing.
https://www.youtube.com/watch?v=OZChbNQWH3s – in case anyone is interested in hearing the interview. Have a bucket nearby.
#106 Nonplused on 04.13.21 at 8:14 pm
“This post was edited. – Garth”
I have often wanted to edit my posts but when I right click I get “Translate to English” as the most appropriate choice. Call me stupid but how does one edit?
=======================
Garth meant that HE edited the post. You cannot edit your own post.
I think it will be the Roaring 20s in the States but not here. People will have their money tied up in mortgages and debt so as before the pandemic things will remain the same. Even worse.
Epic Irrational Exuberance.
The roller coaster has reached it’s zenith. The first drop should be spectacular.
Dont think we have an option of a soft landing anymore.
I hope, young folks learn to value their liberty and freedom over a house. Renting is ok. You need a home not a mortgage.
#78 Don Guillermo on 04.13.21 at 6:00 pm
#44 Bk on 04.13.21 at 4:26 pm
Those of you saying to move to the usa.. . How does one do that without marriage or a specialized job or skill that allows for the move. What about the rest of us average people???? If move to the states in a heartbeat if I could
******************************************
If you have some marketable skills you’re probably better off in the USA. If you don’t, better to be poor in Canada.
———————————————-
Why would you not develop marketable skills? If you can’t code, certainly you can at least learn how to run a suck-truck or do plumbing.
Asians when talking about grades with their kids (and I got this from an Asian): “You got an A??? A stands for average! B?? B equals failure!” It was meant to be funny but became less so as our Chinese friends hired a tutor because their son only had 95% in math and was worried about our son because he only had 90% in math, so we needed a tutor too.
North Americans be more like “teachers and the police suck”.
#110 Nonplused on 04.13.21 at 9:05 pm
A PS,
Asian people put as much pressure on their kids to do well at school as we put on our kids to win useless sports games. That is why they are winning.
Looks like the federal government is taking the first steps to re-nationalize Air Canada. Interesting.
Yesterday got first shot of AZ. Woke up at midnight…heart rate 90, skin hot, not shivering but shuddering….got up..2 tylenol..giant glass of water…woke up at 7…achy and shivering….more tylenol and water…more sleep..up at noon….temperature down…not so shivery…back to sleep…up at 4..shower..2 more tylenol….hungry now….should be right as rain tomorrow
You forgot the scotch. – Garth
#55 Mark on 04.13.21 at 4:36 pm
“The politicians actually like this real estate feeding frenzy. They crave all the economic activity they can get”
This doesn’t make any sense. By pulling forward future demand and inflating every household’s debt service obligations for the next 2.5 decades, they are guaranteeing a sustained economic slowdown (probably for decades) and one mother of a recession right after this covid thing is “over”. And probably another one in 5 years when all of these mortgages renew. So they are enabling exactly the opposite of what they say they want. What are we missing?
The election cycle. – Garth
*****************
Political survi al 10. It can all fall apart after the election and a majority is gained. Then the tough love will ne introduced in doses. Trudeau is focused on the nect 6 months…that is all that matters for now.
#110 What is Even Happening? on 04.13.21 at 8:46 pm
#37 Alberta Ed on 04.13.21 at 3:29 pm
Home are still affordable, just not in Canada. Look for an exodus of moisters to join the tens of thousands of young Canadians who have already left for better opportunities in the US.
#40 Annek on 04.13.21 at 3:41 pm
My advice to young people: Their future is not in Canada.
Jobs pay more in the USA, houses are cheaper and taxes are less.
If you stay in Canada , you will have the backlash of the increased taxes due to this Covid spending spree of Mr. Blackface.
Get out while you can
_ _ _ _ _
Yup, already starting. One of my friends in her 40s moved to the U.S. for a highly creative and specialized STEM job. Its closest counterpart in Canada pays 10x less than what she earns.
In turn, her genius son is gunning for M.I.T., Oxford or Ivy League schools. He wants to cure cancer or lead a team in outer space one day. Either way, he’s not planning for a career in Canada because salaries aren’t keeping pace with the cost of living here.
Canada is losing highly intelligent and talented people who can innovate and lift the world to great heights. Which is sad, because I think most Canadians want a society full of these people, and could greatly benefit from these people…but all those people are now smart enough to leave.
——————–
Time to get your sorry asses outta here.
Sailo’s got the parachutes ready.
Make room for people who wanna contribute to this great country.
#85 Flounder on 04.13.21 at 6:48 pm
I don’t know what happened to my previous message, but this is a terrible post. What the h#*l happened to Garth? Suggesting ways to buy into this market is insane.
People will buy regardless of your sentiment, or mine. They might as well go into the fight armed. – Garth
***************
I took it that way…better have a strategy if you are sane and planning to buy in these times.
Boomers have been sitting on the COVID sidelines watching the prices go up. Once they get their shots more listings looking for the true greaterfool. A part of the boomer cohort can and will sell high and retire somewhere else. That could get the ball rolling.
#120 albertaguy shivering in ab
Yep, similar to my reaction. 24 hours after my AZ shot given at 6 pm, I was shuddering uncontrollably. Had to crawl into bed under a sea of blankets, and nothing was too warm. After midnight, I was kicking off the covers and awoke at 5 am sweating. At 48 hours things were normal, but quite the ride. I hope shot 2 won’t
be as bad. At least for the first one all I had to do was walk into a drug store and say hello, my shot was arranged right away.
Out here on the left coast us guys on the 15th & 16th fairways had our turn for the shot. Some had sore arms. Myself & a couple others were real tired & went to bed early. One guy got home & his vision wasn’t too good. He phoned up the clinic & told them his vision was blurry & wasn’t getting better. Should he go back to the clinic or maybe admit himself into emergency? They told him to come back to the clinic. He had forgotten his glasses there.
or you can live with your family for free, and wait till they die and inhert it or something.
whatever Mr. Socks is going to do/say, it is for the election. It seems that he is betting on that Canadians would like to see the rising-forever-house-price. It is us, who is believing the rising-forever, who is buying now, who owns multiple properties, who is leasing an Audi and get paid $$$ for several hours work, that elected the leader who would ask “why those famine victims didn’t eat minced meat”.
So stop complaining, sane people. join them, or wait patiently for the burst! it is not going to be good, for anyone!
Apparently, this is who’s buying all the single detached homes. I’m sure this is not just happening in the US. It’s happening everywhere including itty bitty teeny weeny Canada.
https://www.wsj.com/articles/that-suburban-home-buyer-could-be-a-foreign-government-11618306380
There was a potential buyer at my building here in Coquitlam listed at $599,000. 2 bed and 2 baths. Same boring layout as me in a 1 bed. Yep, I am a “god forsaken” renter—of course.
A high school friend just bought a 1980’s 1200sqft place in Kelowna for $650,000. Mania all around. I can say at 32 years old; I have had open heart surgery before most of you degenerates on this blog. If that is the case, we are all doomed.
You forgot the scotch. – Garth
BC Liquor Store took away the best scotch I ever had. $30, if I recall. Kuchh Nai means nothing in Hindi. Well, soon enough that is Canada and the rest of this planet.
We have detected several Blog Dog variants of concern in this comments section.
Kanadians I am urging you to #stayhome and only leave your Primary Bedroom for the essentials.
————-
**Ready for the SUPPLY CHAIN shortages? Here’s how.
https://www.vancouverisawesome.com/coronavirus-covid-19-local-news/stay-in-your-immediate-neighbourhood-dr-bonnie-henry-delivers-message-in-wake-of-surging-covid-19-cases-3626519
A new provincial health order that allows WorkSafeBC to shut down workplaces for 10 days or more when there is confirmed transmission of coronavirus (COVID-19) by at least three people on site goes into effect today.
————
As predicted here – down to the letter – in 2019:
#91 TurnerNation on 12.17.19 at 8:06 am
For years now I’ve stated a time will come whereby armed government men destroy perfectly good food stuffs while desperately hungry people look on. Maybe the WHO says there is a virus, or maybe the correct ‘carbon permit’ was not obtained beforehand
#49 TurnerNation on 09.10.19 at 8:54 pm
I beleive in my lifetime good foodstuffs will be trashed as armed men look on and people are starving. Maybe the correct karbon permit was not applied for, or the WHO claims dread disease and we comply.
————————-
Blockchain was invented for us. Every human and animal is to be stored and inventoried and tracked in it. Yep CV kicked that off nicely. It was all waiting in the wings.
https://www.ibm.com/products/digital-health-pass?
Digital Health Pass, part of IBM Watson Works, is designed to provide organizations with a smart way to bring people back to a physical location, such as a workplace, school, stadium or airline flight.
Built on IBM Blockchain technology, the solution is designed to enable organizations to verify health credentials for employees, customers and visitors entering their site based on criteria specified by the organization
Instead of viewing an individual’s personal health records, with IBM Digital Health Pass, these companies would receive a ‘green light’ or ‘red light’ to verify an individual has provided an authenticated negative test result or vaccination record. This ensures accuracy of the information and protects the individual’s privacy.”
last point is a joke right? As if…
#80 WTF
Congrats on your bragging. In 8 years, renting that would have increased double or triple for mostly everyone. Yeah yeah, blah blah your portfolio means nothing when shit hits the fan. Still funny all of you folk that go on about this without a tangible asset, including a house. Sure they will come for land like days of old. History ALWAYS repeats itself.
Garth, won’t go too much into equities since his alter ego is in fact Turner Nation. Makes sense really. He likes to play devil’s advocate. Inside information. Read between the real lines. You never leave government no matter the age or cost.
#120 albertaguy shivering in ab on 04.13.21 at 9:40 pm
Yesterday got first shot of AZ. Woke up at midnight…heart rate 90, skin hot, not shivering but shuddering….got up..2 tylenol..giant glass of water…woke up at 7…achy and shivering….more tylenol and water…more sleep..up at noon….temperature down…not so shivery…back to sleep…up at 4..shower..2 more tylenol….hungry now….should be right as rain tomorrow
You forgot the scotch. – Garth
********************************
Felt exactly the same for 24 hrs after my AZ. Love scotch but not that day!
107 Faron
How do you feel about replacing a $60k worker and a
$40k assistant with a $70k worker and robotic assistant?
#107 Faron on 04.13.21 at 8:14 pm
#89 Stoph on 04.13.21 at 7:01 pm
#54 Faron on 04.13.21 at 4:34 pm
—————————————————————
I watched a documentary on Westinghouse a while back. He was quite the inventor and businessman whose accomplishments are overlooked today – everyone knows about Edison but not him.
I bring him up because he treated his employees well which included implementing half days on Saturday when a six-day work week was the norm among other benefits (much to the disapproval of other business owners). At his peak he was president of 34 companies employing 50,000 people and one of America’s industrial titans of the turn of the last century.
Aww Abe …
“About the picture” today was a tear-jerker. But in a good way. Nothing like a story about a good ol’ dog, and getting to return to his peaceful home to warm the heart. Thanks
Here’s a winning scenario. Win a bidding war any way you can. Write it to the moon, a 100 grand over no problem. Now, write it subject to finance, right to assign, long close, say 4 months. As low a deposit as you can bargain, make up any excuse. Now, you can flip in the interim if the market goes up, or walk if the appraisal comes in low. Perfect.
To this observer market capitalism has been structured along the same lines as a casino.
A portion of the benefits generated by market capitalism are distributed to the general population but a disproportionate share of benefits accrue to those with capital to invest.
Casinos distribute a portion of their gross revenues back to their customers but at the end of each day a share of gross revenues generated accrue to the owners of the casino as a return on their investment
The general population of Canada understand that all casinos are structured to generate income for the casino owners and for the sanctioning governments. The mere possibility of winning more than the amount invested is sufficient to attract a sufficient number of customers to each casino.
The general population of Canada is beginning to understand that market capitalism is structured to reward
citizens with the most capital to invest. Market capitalism distributes a portion of gross revenues generated to the general population but at the end of each day a disproportionate share of gross revenues accrue to those with the most capital invested.
Lately governments around the world decided to increase M2 money supply by trillions of dollars and to inject these borrowed funds into their economies. Predictably a disproportionate share of benefits generated by this substantial investment in market capitalism accrued to the most wealthy citizens.
Imagine if our governments decided to inject trillions of dollars of borrowed funds into casino owned slot machines and then proceeded to distribute their winnings to the general population. The general population would most certainly object to this approach.
However when the Government of Canada decided to invest hundreds of billions of borrowed funds into market capitalism there was only a ripple of dissent. The fact that a disproportionate share of benefits generated from the investment of borrowed funds into market capitalism accrued to the most wealthy citizens has not become an issue.
The belief that every citizen has the potential to become a winner overrides concerns over the unequal distribution of benefits under market capitalism.
The citizens responsible for repaying the trillions of dollars of additional debt invested in market capitalism in 2020 remain silent.
Mainly because they have yet to be born.
The head of the Ontario Realtors’ Association was on TVO last week Singing the praises of blind auctions as a way for home owners to maximize their profits (and his members commissions). Didn’t seem too worried about distortions on the economy. The man who would be premier.
Post edited. – Garth
@#43 Timmy on 04.13.21 at 4:06 pm
Why do we allow realtors to make $50K for selling one house? They are grossly overpaid and the buyer is paying for this. What value do they add? How long does it take to become a realtor? 3 months?
–
I’m not the biggest fan of realtors either but, you know you don’t have to hire a realtor to sell your house right?
Apparently a ton of folks don’t mind paying.
@#135 Stoph on 04.14.21 at 1:22 am
#107 Faron on 04.13.21 at 8:14 pm
#89 Stoph on 04.13.21 at 7:01 pm
#54 Faron on 04.13.21 at 4:34 pm
—————————————————————
I watched a documentary on Westinghouse a while back. He was quite the inventor and businessman whose accomplishments are overlooked today – everyone knows about Edison but not him.
I bring him up because he treated his employees well which included implementing half days on Saturday when a six-day work week was the norm among other benefits (much to the disapproval of other business owners). At his peak he was president of 34 companies employing 50,000 people and one of America’s industrial titans of the turn of the last century.
–
also a CEO out there that implemented a 4day work week with great success. Have a feeling there will be a big paradigm shift over the next decade.
great time to be alive.
@#132 End of Daze
“In 8 years, renting that would have increased double or triple for mostly everyone.”
+++
What planet are you from?
In my 8 years of renting ( sold the house) in the Lowerbrainland of BC .
My rent has increased from $1150/month to $1300/month. Big Fricken deal.
My B&D portfolio has gone from $700k to well over $1 mill.
I might suggest “you do the math” but judging from your previous statement….. I doubt you can….
Keep wallowing in misguided jealousy and hate….it’s worked great so far…..
First the Suez Canal debacle, and now it’s ‘work to rule’ in Montreal. I better stock up on Jaguar necessities while the shelves still have them. Oh, and hey! Looks like the reports of the death of oil are somewhat premature.
Two snippets from this mornings newspapers. Some of us still read ’em.
—PARTIAL STRIKE AT MONTREAL PORT TO CLOG SHIPPING
A partial strike scheduled to start Wednesday by Port of Montreal dockworkers threatens to increase congestion in other parts of North America and further waylay shipments at a time of surging shipping costs and delays. Longshoremen at eastern Canada’s biggest port will work regular shifts Monday through Friday without overtime hours and refuse to work weekends. This comes after the Montreal Employers Association stated it will exercise its right to lockout, the workers’ union said, following drawn-out contract negotiations. The port’s capacity is now expected to drop by 30 per cent, Montreal Port Authority CEO Martin Imbleau said in a statement. Some companies have already redirected shipments to the port of Halifax.—
+++++
—Oil’s weekly spike has OPEC anticipating demand rebound
Oil closed at the highest in over a week after OPEC boosted its expectation for this year’s demand recovery, while signs continue to emerge of rising fuel consumption in parts of the world.
“There’s going to be tremendous pent-up demand for crude,” said Edward Moya, senior market analyst at Oanda Corp. —-
#77 uncle dave on 04.13.21 at 5:59 pm
Canadians have done this to themselves, there’s no foreign dude to blame for this mess!
————————————————————————————————
We have lots of help !!!
As China imposed a sweeping national security law in Hong Kong last year after massive protests, residents of the city moved tens of billions of dollars across the globe to Canada, where thousands are hoping to forge a new future. … The outflows represent only 1.9 per cent of Hong Kong’s total bank deposits in 2020.Mar. 25, 2021
https://globalnews.ca › news › hong…
Hong Kong residents transfer billions to Canada as China clamps down – National | Globalnews.ca
Well well well
Bernie Madoff beat his 150 year prison sentence.
The King of the Ponzi scam has died in prison.
The man who ruined thousands of lives.
#128 Stone on 04.13.21 at 10:32 pm
Apparently, this is who’s buying all the single detached homes. I’m sure this is not just happening in the US. It’s happening everywhere including itty bitty teeny weeny Canada.
https://www.wsj.com/articles/that-suburban-home-buyer-could-be-a-foreign-government-11618306380
—
Yech. Thanks for the article. Paywalled, but I get the gist. There is no humane reason why housing should be an investment vehicle. Same reason water futures will eventually screw people over while making bank for the well-to-do. The only reason RE is is because it benefits those who are in power.
#141 KLNR on 04.14.21 at 8:13 am
@#135 Stoph on 04.14.21 at 1:22 am
#107 Faron on 04.13.21 at 8:14 pm
#89 Stoph on 04.13.21 at 7:01 pm
#54 Faron on 04.13.21 at 4:34 pm
—————————————————————
I watched a documentary on Westinghouse a while back. He was quite the inventor and businessman whose accomplishments are overlooked today – everyone knows about Edison but not him.
I bring him up because he treated his employees well which included implementing half days on Saturday when a six-day work week was the norm among other benefits (much to the disapproval of other business owners). At his peak he was president of 34 companies employing 50,000 people and one of America’s industrial titans of the turn of the last century.
–
also a CEO out there that implemented a 4day work week with great success. Have a feeling there will be a big paradigm shift over the next decade.
great time to be alive.
—————————
Agree with both posts.
What a concept?
A business person treating their employees well!
Win-Win.
I think most employees that have tasted the 4 days week, are eager to have it extended.
It is well documented that part time employees are more productive on a per hour basis than full time workers.
Parkinson’s Law:
“The time it takes to accomplish a task expands to the time allotted to complete it”
#132 End of Days
You sound triggered.
There are other strategies instead of rolling the dice on a wildly overpriced singular asset (price to rent/income) which seems to be the mantra for the all in crowd. Not Me. Good luck to them.
Bragging? Hardly, although Golf today, 20c in Van. You too?
#133 Don Guillermo on 04.14.21 at 12:21 am
#120 albertaguy shivering in ab on 04.13.21 at 9:40 pm
Yesterday got first shot of AZ. Woke up at midnight…heart rate 90, skin hot, not shivering but shuddering….got up..2 tylenol..giant glass of water…woke up at 7…achy and shivering….more tylenol and water…more sleep..up at noon….temperature down…not so shivery…back to sleep…up at 4..shower..2 more tylenol….hungry now….should be right as rain tomorrow
You forgot the scotch. – Garth
********************************
Felt exactly the same for 24 hrs after my AZ. Love scotch but not that day!
…………………………..
I had the Pfizer shot one week ago. Zero side effects except for tenderness at the injection site for one day.
#94 Squire on 04.13.21 at 7:26 pm
https://www.bttoronto.ca/videos/cnn-host-jake-tapper-called-out-canada-for-its-vaccine-rollout/
> minute 3:00
CNN Host Jake Tapper Called Out Canada for Its Vaccine Rollout
———————-
I watched that clip.
I usually like Jake Tapper, but this was a snow job.
#148 WTF
Bragging? Hardly, although Golf today, 20c in Van. You too?
————————————————————————–
Golf while you can.
Enjoy the other 99% of the time when it’s raining on the wet coast.
There are many, many MLS listings that don’t attract bidding wars. Realistically priced also. One house in my neighborhood stayed on the market for 2 years until the seller got his price (3% below asking). Good house too, needed a bit of outside cosmetic work to improve curb appeal. Nicely renovated inside. Expensive, sure, that’s been the new reality for at least a decade. Where have the buyers been 2017-2020 when prices were down 30%? Why fret now? You didn’t buy when prices were lower, it means you didn’t want to buy.
#142 crowdedelevatorfartz on 04.14.21 at 8:34 am
@#132 End of Daze
“In 8 years, renting that would have increased double or triple for mostly everyone.”
+++
What planet are you from?
In my 8 years of renting ( sold the house) in the Lowerbrainland of BC .
My rent has increased from $1150/month to $1300/month. Big Fricken deal.
My B&D portfolio has gone from $700k to well over $1 mill.
I might suggest “you do the math” but judging from your previous statement….. I doubt you can….
Keep wallowing in misguided jealousy and hate….it’s worked great so far…..
—————————————————————
The math says that your portfolio should have more then doubled over the past 8 years. Total SP500 return is 160% April ’13 to April ’21. And if you have cheap rent – and you appear to have that, one bedroom in Surrey? – then with heavy contributions you would be looking at minimum 2x on that 700K, likely closer to 2.5x.
Selling and renting was probably the right call if you had no savings going into 2013.
#134 Dr V on 04.14.21 at 1:19 am
107 Faron
How do you feel about replacing a $60k worker and a
$40k assistant with a $70k worker and robotic assistant?
—
Who gains from that scenario? Shareholders, the higher level worker, the makers of the robot, upper management. Publicly held companies are incentivized to siphon cash out of the company at any cost. The result is inhuman and inhumane opportunities and working conditions. That’s fine if the upper uppers want to pay more tax to support the people who lost work or are getting paid dirt. But that will be resisted because of fear and greed. But why shouldn’t they pay more? Because making $200k a year and up isn’t enough money?
I got my first vaccination on Monday afternoon (Moderna). That night and the next day I had the sorest arm ever after a vaccination (and I’ve had many, mostly flu shots). Still, it didn’t cause much problem, unless I bumped my arm or tried to sleep on that side (which was impossible).
Today, it’s quite a bit better. Should be normal by tomorrow. That was my only side effect, and it was expected. Several friends reported something similar.
And the shot itself? I didn’t feel it at all.
Here’s the thing about higher salaries and shorter work weeks:
This pandemic shutdown proved that a lot of ‘work’ is unnecessary. Production to keep the lights on and systems running only needs about 20-30% of the workforce. Unnecessary jobs cater to desires and ideas.
And always remember that money itself is just an idea.
In the natural world, crocodiles barely move and lions sleep 20+ hours a day. A few hours of hunting is all that’s needed.
In the right field, it’s possible to position yourself and your company to reap outsized reward for energy expended. If this is the case- sure, pay everyone $150k and have them work 2 days a week. If efficiencies allow, all is well. Be careful extrapolating this ideology to all work, though, since the majority of jobs are irrelevant and unnecessary.
A lot of time and energy is spent validating the feelings of those doing unnecessary work and often the validation includes money. And that’s fine, since money is as fictional as irrelevant work. Thin soup.
#151 Dharma Bum on 04.14.21 at 11:06 am
#148 WTF
Enjoy the other 99% of the time when it’s raining on the wet coast.
—
Yeah, it was pretty tough relaxing in the sun on a lonely gulf island this weekend. You probably couldn’t handle it Dharma :-). Tell your friends to stay away too. For their own sake.
#102 Nonplused
You are entirely correct to point out the Han is outworking us and prevailing into all the places where the European descendants are collapsing. Deng Xiaoping realized the errors of their Cultural Revolution and took down the Gang of Four as they tried to destroy their society (like ours are doing to us right now) by imposing “emotional decisions onto human conditions.” (his words, not mine). He was able to reverse all the damage the ideologues had done to their civilization and then came to understand how to “play the game” with The West. They are overtaking us because they know their history, understand who they are and didn’t want to crumble the same way the USSR did. Glasnost was a very, very big mistake and Russia today is still paying the price. The Han, and Kuomintang who are coming here to buy into our open spaces are here to escape the old world problems that are catching up to Beijing rapidly. Things are not as rosy as Xi’s presentations would have us believe. The tragedy in all of it being, much of our national debt has been concentrated to the aristocracy of “China” because they stole our middle class by providing a cheaper means (grossly though human rights abuses) of industrial production. Now they are coming here and stealing our future. Who do you think is “buying the bonds) to support Socks and Impaler to keep the trillion dollar printing press going? “Tragedy and Hope” – give it a read. Payback is a b*tch!
In terms of houses “must be affordable” – you’re incorrect. The surplus value of our economy has not increased (in fact, it is rapidly decreasing and has been since about 2015). So sure, you can turn the printing press on – keep that free money flowing….this will not end well. Make minimum was $80/hr to keep up. Regardless of whatever system of derived socio-economics any dictator can impose onto us – the surplus value of human capital is gone. Hyper inflation or a brutal regime to ensure the establishment remains on top is all that is left.
I know you try to see the bright side and much of what you post I agree with. But on this one you are wrong.
https://en.wikipedia.org/wiki/Gang_of_Four
https://en.wikipedia.org/wiki/Century_of_humiliation
https://duckduckgo.com/?q=deng+xiaoping&t=newext&atb=v250-1&ia=web