Chilled, not shaken

Are you feelin’ frothy? Bubbly? Along with those frisky Kiwis and sexy Swedes, Bloomberg Economics says we have the most emotional (and therefore likely unstable) housing market in the world, along with New Zealand and Sweden.

Why? “A cocktail of ingredients,” we’re told, including cheap loans, bushels of government money, FOMO, a shortage of listings and all the cash we saved during the WFH blip. This conclusion is based on our price-to-income and price-to-rent ratios, which have both landed in the “Holy Sh!t” zone.

So what happens?

No crash, says the report. But the market will be stressed and chill in the months ahead. “When borrowing costs do start to rise, real estate markets — and broader measures put in place to safeguard financial stability — will face a critical test.”

Has it begun?

Well this is interesting. CREA reports the average house price across this great nation of property-horny little beavers is actually moving in reverse. From $716,000 in March it retreated to $696,000 in April and ended May at $688.000. This is up a ridiculous 38% from last year at this time (when Covid crushed the market), but the two-month decline still amounts to 4%. In that period of time, it’s a lot.

But wait. Sales are declining, too. The peak was (again) March at around 70,000 across Canada. That number toppled by 11%, then again last month by 7%. Also significant.

Says CREA’s boss, Cliff Stevenson: “More and more, there is anecdotal evidence of offer fatigue and frustration among buyers, and the urgency to lock down a place to ride out COVID would also be expected to fade at this point, given where we are with the pandemic.”

And here is what chief economist Shaun Cathcart concludes:

“Maybe we all finally have something else to think about other than housing and being stuck at home all the time. For now at least, with the light at the end of the tunnel so close, it feels like housing may take a back seat to us all starting to get our lives back to normal this summer.”

As detailed here recently, both the GTA and YVR have seen slowing markets. Bidding wars have quelled and many ‘offer nights’ are ending with no deals at all. This isn’t because listings have been flooding the market (just a trickle) or mortgage rates zipping higher (not much of a bump lately). Mostly it’s because the insane increases of the Covid months have frozen out buyers and rendered renting a more attractive alternative, while disgusting realtor tactics like blind auctions have made a trip to the dentist for a root canal way funner than house-buying.

This blog has said it often. There’s no shame in tenancy. Renting is a totally valid and proud option. There is much wisdom in not surrendering your mobility, flexibility or liquid savings for a real asset that involves massive leverage, ongoing and rising costs and which cements you into a single city. One spouse in your life is a good thing. A single house in your life is suffocation.

Now speaking of renting, some maladjusted people this week are bemoaning the plans of a Toronto-based developer to buy up a mess of houses for rental stock. It’s a model which has worked well for investors in the US, and greatly expanded the stock of affordable, well-maintained, non-apartment, leased accommodation there. Core Development says it might spend up to $1 billion over the next five years to purchase, reno and lease out detached houses in Guelph, Kingston, St. Catharines, London, Barrie, Hamilton, Peterborough and Cambridge. Eventually the company wants 4,000 units in Ontario, Quebec, BC and the Maritimes.

In the States houses are way cheaper, so similar outfits have been able to offer a whole SFD place for about $1,500 a month. Far more affordable than owning. In Canada houses cost too much, so Core will likely duplex each and offer two units in order to be cash-flow positive. Maybe two grand a month, which gives people a two or three-bedroom unit with a garden, parking and street presence. So far Core has about 400 properties in its portfolio.

Now, how could this possibly be a bad thing?

Will Core (and maybe others) compete for a limited number of homes and drive prices up?

Nah. It needs to purchase properties at the best price possible to make the economics work, and is highly unlikely to compete with any individual bidder. In fact, by adding eight thousand decent, well-run, renovated, affordable housing units to the national mix, these guys may actually suck a lot of pressure off the overall market. People who thought they had to mortgage their souls, abandon their savings and eat KD forever to escape a rented high-rise condo would have a great alternative. Live well. Within their means. Have money left for the kid’s RESP. Avoid debt. No noodles.

We vex a lot on this pathetic blog about the state of the market. It would be a better country if we stopped shaming people into real estate they can’t afford in order to justify the myopic, obsessive and now destructive mania of the masses. Let the Swedes implode.

This is progress.

About the picture: “Greetings from Cowtown!” writes Adam.  “I wanted to reach out and say thanks for the years of financial advice, I’ve been able to turn around a position of being laid off twice in the o&g downturn to now having 100k in liquid assets. This is a picture of Scout, a five-year-old rough Collie. We also have his littermate, Akira, and a sheltie that is a miniature version of the collies. They are all big into agility and are looking forward to post-covid so they can get back to dog shows. The joys of hobbies you can have without kids.”

 

115 comments ↓

#1 none on 06.15.21 at 1:56 pm

I agree. the whole ‘you’re not an adult til you own a house’ is juvenile and stupid. Indeed, needing to own a place to full fill a societally mandated believe is the behaviour of a child and not an adult.

I get the whole housing bubble prediction – i’ve thought it for years. My kid in law is putting in an offer this Friday. I think it’s amazingly stupid as they will be massively overly leveraged. I know we tend to joke around the impact of a couple hundred grand in our lives and it’s true when it’s positive – losing a couple hundred grand at the start of your career can be massively damaging. I think they’re screwed but I can’t say anything because I don’t want to be ‘that guy’.

I don’t blame them though – how do your beliefs compete with a housing bubble prediction that hasn’t manifested for a decade compared to headlines link this on the G&M?

“CREA revises home price forecast higher, sees 19% increase this year”

#2 Frankenumber on 06.15.21 at 2:10 pm

Garth,

Aren’t these CREA numbers still scrubbed, sanitized, cleansed for quality?

I know it’s been a while since they implemented it so one could say it is “apples to apples” now, but how good is the data being fed down to the sheeple really?

You repeatedly point out the gaps in reported number claims, and yet no one in the main stream media picks up the same distortions. Boards get away with their claims, corrections or error be damed.

Makes one wonder.

Also, makes one wonder why the politicians drag their feet on transparency and data all these years later? How long has that whole thing been going on, and still the MLS data isn’t sharable, right?

#3 Justin on 06.15.21 at 2:11 pm

“Now speaking of renting, some maladjusted people this week are bemoaning the plans of a Toronto-based developer to buy up a mess of houses for rental stock. It’s a model which has worked well for investors in the US, and greatly expanded the stock of affordable, well-maintained, non-apartment, leased accommodation there.”

I wouldn’t say it’s worked all that well. Having a big company as a landlord just means more muscle to push you around. Give me a private homeowner with skin in the game any time.

The Atlantic had a good article about the perils of corporate landlords for SHFs. I would read it before diving in:

https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/

#4 Ian on 06.15.21 at 2:19 pm

Two indicators

Lumber prices are falling

Condom sales are rising

I sure as heck do not want to be stuck at home building a fence when COVID ends. More to the point, people will want mobility, travel and pants.

This house party ends in a few years when interest rates are easily 3 to 4% for a good deal on a 5 year! GL on renewing $700 to $800k mortgage debt from 1.5%, YIKES!

#5 willworkforpickles on 06.15.21 at 2:20 pm

The lights are flashing green for people to get out and spend like they think things are getting/going back to normal.
No major crisis in the world to speak of perpetuated by any world governments can expected for awhile anyway now that the olympics are guaranteed a go.
Nations tend to hold back the upheaval until after their teams and athletes have competed.
The next couple of months should be smokin hot for the economy…but after then…then after, ominous projections from earlier on could (will) begin to unfold.

#6 Dolce Vita on 06.15.21 at 2:24 pm

Go to read the RE Market is adjusting on its own.

And Cdns avoiding FOMO, the better read for me.

——————–

“Let the Swedes implode.” -Garth

They did this morning about the Euro 2020 game with Spain last night (0 – 0).

I watched it, they had but ONE chance and blew it. The Spanish many chances and blew them all. Spanish press in mourning today.

The Swedes, IMPLOSION. Poor Marcus Berg, the guilty party:

https://i.imgur.com/jHR5Aiw.png

And your perfunctory threats of stripping citizenship etc:

https://i.imgur.com/e6I2hM0.png

Swedish Sports MSM very good with pathos.

—————

PS:

I take it My Liege that I can now, instead of using the word dung, Comment using:

Sh!t

I think that is a very creative use of an exclamation mark, an upside down “i”.

#7 Yin and Yang on 06.15.21 at 2:25 pm

Re: Core Development

You pay $1.5M for a detached, and next door house becomes a duplex to triplex. Makes people pleased, doesn’t it? Instead of one neighbour you get 3. Maybe one on each side?

On one of my walk loops there is a renovated $2M detached recently sold that’s next to a rooming house – oh the noise from their front porch. ENJOY new owners.

Then my buddy in Woodbridge was telling me about the drummer boy in the next door house basement playing on and on and on till his head goes pop. Apparently he’s allowed to make noise all day long as long as it’s under 55db measured at yard line. City came, measured, all good! Play on drummer boy.

I guess what I’m saying is….there is no perfect solution. Everything has an upside and a downside. By now we should know this.

Like all this Canadian debt…has an upside. Inflation! Economic growth will be claimed of old numbers against new inflation numbers! YEAY! …what’s the down side?

#8 Penny Henny on 06.15.21 at 2:27 pm

I’m not sure who here mentioned writing to your MP to get a free Canadian flag, I had never heard of such a thing. So never one to pass up a freebee I wrote and a new 4’x6′ flag arrived today. Best of all it’s ‘Made in Canada’.
Thanks to person who mentioned it here.

#9 Ranymo on 06.15.21 at 2:30 pm

Anybody else see similarities between those who bought houses in fear over Covid and those who stock piled Toilet Paper?

People really ARE strange.

#10 IHCTD9 on 06.15.21 at 2:31 pm

Sweet pic Adam!

But, having kids does not preclude you from entering your canine into a dog show. In fact, if you do things right, it makes it easier.

Come to think of it, having a couple able bodied young Men chillin’ at the bunker complex has reduced my work load at least 50% – on just about everything! :)

#11 crowdedelevatorfartz on 06.15.21 at 2:36 pm

@#4 Ian
“Two indicators
Lumber prices are falling
Condom sales are rising”

++++

I guess its true.
It takes a stud to build a house.

#12 Yin and Yang on 06.15.21 at 2:42 pm

Re TREB MLS data…

Just checked. They were ordered to do it. But then…they found a way to skirt the ruling anyway…

“Toronto real estate brokerages told to stop displaying home sales data older than two years: TRREB memo”

https://www.theglobeandmail.com/business/article-toronto-real-estate-brokerages-told-to-stop-displaying-home-sales-data/

#13 IHCTD9 on 06.15.21 at 2:43 pm

#8 Penny Henny on 06.15.21 at 2:27 pm
I’m not sure who here mentioned writing to your MP to get a free Canadian flag, I had never heard of such a thing. So never one to pass up a freebee I wrote and a new 4’x6′ flag arrived today. Best of all it’s ‘Made in Canada’.
Thanks to person who mentioned it here.
—-

PH, you never pass on a freebie do you? :)

I blew the 20.00 I got from the CRT over-charge class-action lawsuit you mentioned a couple years back on a cheap magnum of Merlot! (Thanks again!)

#14 household built on 06.15.21 at 2:45 pm

Me thinks Core Dev knows rents are big money here in Canada… So they is getting in on it while they can… “This year, Core quietly began purchasing properties in Cambridge, Hamilton, Peterborough, London, Barrie, Kingston, and St. Catharines, and will soon drop more dollars on properties in Guelph”.

#15 45north on 06.15.21 at 2:46 pm

In the States houses are way cheaper, so similar outfits have been able to offer a whole SFD place for about $1,500 a month. Far more affordable than owning. In Canada houses cost too much, so Core will likely duplex each and offer two units in order to be cash-flow positive. Maybe two grand a month, which gives people a two or three-bedroom unit with a garden, parking and street presence. So far Core has about 400 properties in its portfolio.
Now, how could this possibly be a bad thing?

what a stupid idea! take a house designed for one family and change it to house two families. There’s only one furnace – likely forced air. You put up some walls, and there’s poor air circulation. The walls won’t be sound proof nor will they satisfy fire code. Plumbing – what a disaster. Each bathroom needs its own stack to the roof. Plus water supply and drain pipes – not easy to put in on an existing house. Electrical – there’s only a single electrical panel, but a couple of new outlets isn’t that hard.

The idea underlines the fact that $1 million houses make no economic sense.

#16 45north on 06.15.21 at 2:46 pm

none I get the whole housing bubble prediction – i’ve thought it for years. My kid in law is putting in an offer this Friday. I think it’s amazingly stupid as they will be massively overly leveraged. I know we tend to joke around the impact of a couple hundred grand in our lives and it’s true when it’s positive – losing a couple hundred grand at the start of your career can be massively damaging. I think they’re screwed but I can’t say anything because I don’t want to be ‘that guy’.

I am that guy.

#17 Dogman01 on 06.15.21 at 2:55 pm

I suspect something is going on in our Military.

A General suing the Government is not normal, knowing the military ethos this suggests complete contempt for the integrity of the current Government.
https://www.cbc.ca/news/politics/dany-fortin-sexual-misconduct-vaccine-1.6065393

In my time in the CAF respect for Integrity was everything, contempt for lack of integrity was overtly displayed by all ranks.

The Senior Officers likely do not want their institution turned into the obfuscating, political cover-up, laughing stock that the RCMP have become.
https://globalnews.ca/news/7943578/portapique-nova-scotia-rcmp-911-calls/

Worst Government ever…..

#18 Adam on 06.15.21 at 2:55 pm

Thanks for picking my picture Garth! We bought a house in a dog park specifically for our pups, strange request for our realtor to hunt down but they do exist.

#19 Millennial 1%er on 06.15.21 at 3:02 pm

Come on…. cottage capitulation baby…

#20 ElGatoNerodeYVR on 06.15.21 at 3:02 pm

I still don’t see how anyone can easily make money renting out a SFH. Even if assume 1mil/ house all in ( low end in the suburbs in LM and GTA) one would need about 40K a year over 25 years just to break even , throw in maintenance, partial renos, property management fees, buffer for empty between tenants a decent return and you are looking easy at 80k year so let’s call it 7K monthly minimum rent required.. so 3.5K for a half duplex..a bit on the high side I would say .
I guess they are looking at much lower carrying and operating costs and leveraging volume to generate the 7-10 % net OP ,else why would one bother.

#21 Leftover on 06.15.21 at 3:03 pm

“When borrowing costs do start to rise, real estate markets — and broader measures put in place to safeguard financial stability — will face a critical test.”

How true.

Covid and the economic response is basically equivalent to wartime – take a look at this to understand what happens to interest rates in the aftermath of global warfare:

https://www.visualcapitalist.com/the-history-of-interest-rates-over-670-years/

At least triple within 5 years, so say 6% mortgages by the time people renew around 2025. Not so great if you’re already 450% leveraged, as many are.

#22 My Body My Choice on 06.15.21 at 3:03 pm

Hey Garth, what do you think of Modern Monetary Theory?

Trudeau 2.0 appears to believe he can print money to the moon with little to no consequences.

I’m old enough to remember Trudeau 1.0, his reckless spending, debt, and inflation, interest rates in the 15-20% range in the late 70’s and early 80’s.

#23 Jonathan on 06.15.21 at 3:05 pm

What’s going on with the Fed’s overnight Reverse REPOs? Will this impact rates?

#24 YVR Renter on 06.15.21 at 3:09 pm

#15 45 North –
Theyve been doing this in Vancouver for years, and it solves the problem of needing rental units and density! Many, many homes, in every part of the city, have a basement suite, even fancy Point Grey. They raise the old house to give ’em some light when renovating. And many homes have been purpose built or renovated to accommodate several units, happening as I type. It’s a good thing, people need an affordable place to live, and they don’t all have to being in an elevator building. (which we are, and it sucks). Not only the landed gentry have the right to a lawn.

#25 tbone on 06.15.21 at 3:10 pm

Got my second dose of Pfizer today .

King Kong aint got sh!t on me !
( Says the best actor ever. )

#26 crowdedelevatorfartz on 06.15.21 at 3:33 pm

My my my.
Even a defector from North Korea slams the “Woke” zealots infesting freedom of speech.

https://www.nzherald.co.nz/world/us-similar-to-north-korea-defector-slams-woke-us-schools/GSXLIC4TAQNJ7GZF4TIBLLAJEE/

#27 Sail Away on 06.15.21 at 3:33 pm

#149 IHCTD9 on 06.15.21 at 1:31 pm

It’s a transitional phase we all live in right now. Borders are fading, the concept of work changing, to eventually cumulate in almost no work done by humans at all.

——-

I’m with you. A lot of jobs are already frivolous and cater to desires and luxuries instead of needs. Advances in automation, control systems, AI are all racing forward.

We’re seeing the effect on social landscape as some work is absolute necessity but many other jobs are irrelevant and Barista Jane-Chad shrieks about being less-appreciated than people doing necessary stuff.

The logical progression would lead to further stratification, except the unwashed have great voting mass and a lot of leverage. Hard to say what’ll happen.

The wild card in all of this, of course, is that tiny orbital deviation of an unexceptional asteroid in the outer reaches of the galaxy redirecting it, against all statistical probability, to a direct collision course with an unexceptional blue planet populated with self-important primates.

Million-year plans work until they don’t. Taleb’s turkey and all.

#28 AM in MN on 06.15.21 at 3:44 pm

Just like people moaning about the Chinese buying up all the expensive YVR properties as somehow a bad thing, it certainly isn’t if you are the one selling and funding your retirement, or the many who have 6-figure incomes building new houses and condos.

In the US, this trend started in 2009 with the crash, where banks would offer people to sign over the house that they were underwater on and couldn’t pay for, in exchange for a couple years of cheap rent. The banks then sold these blocks after the prices rebounded in a couple years, such that they didn’t tank the whole market and re-price every house on that street.

Couple that with free money from the Fed to the big hedge funds, and they can pay 20% over market and wait for inflation to take care of them over the next 20+ years.

Big market in the US for SFH rentals and large townhome rentals. People move more often in the US for work, and the exodus from the crime waves in the Dem run cities is noticeable.

Anyone who can swing a hammer or connect a pipe can get a good paying job, as much work as you want. That’s a good thing, and it’s made possible by money pouring into the market.

No one owes you a nice house in the city. Move north if you want cheaper space, and quit moaning!

#29 DON on 06.15.21 at 3:48 pm

#11 crowdedelevatorfartz on 06.15.21 at 2:36 pm
@#4 Ian
“Two indicators
Lumber prices are falling
Condom sales are rising”

++++

I guess its true.
It takes a stud to build a house

*********
Nicely done!

#30 Dave on 06.15.21 at 3:54 pm

No shame in renting and not many decent options either–at least in Vancouver. 2 K for a 600 square foot apt. If you want 2 bedroom it is at least 2.5 K and these don’t even have in suite laundry. Thanks to our politicians who have let developers pave over the city with condos that are sold to speculators, thereby having fewer rentals built, so the landlords can charge ridiculous prices.

#31 IHCTD9 on 06.15.21 at 3:58 pm

DELETED

#32 ogdoad on 06.15.21 at 3:59 pm

Could not agree with your last statement more, Garth. It’s easier to vex than it is to openly support. Speaks to wussiness, in my opinion. Canada is a great country but full of sissies. Perhaps we are more influenced by leadership than we would like to openly admit – fear of judgment from your peers – 3 of four see it one way…what’s the fourth gonna do?!! Haha.

When sentiment changes to renting, I don’t wanna own a house.

Og

#33 Swanson on 06.15.21 at 3:59 pm

I just found out on Linkedin that one of my former colleagues, who has worked as an accountant for more than a decade, has just become a realtor in PEI.

This is someone who has been in management (controller) for years. Yet he said “adios” to bean counting, a stable, professional, albeit uninteresting trade, and wants to start selling houses for a living.

I’m reminded of the “if shoe shine boys are giving stock tips, then it’s time to get out of the market” quote.

#34 Kurt on 06.15.21 at 4:01 pm

#16 45north on 06.15.21 at 2:46 pm

Chunk-ting! and a little spray of red.

#35 Yukon Elvis on 06.15.21 at 4:02 pm

Got my second Phizer jab on Saturday in Kelowna. Zero side effects, in and out in ten minutes. Govts here did a good job imho.

#36 Peter Pickles on 06.15.21 at 4:04 pm

Garth I don’t think you really have knowledge or experience on what these duplex conversions are actually like.

For example, there’s often no seperate entraces for the basement and main unit. That’s too expensive. Typically one unit will either have an entrance through the garage or the back door of the house. Where’s the dignity in that?

HVAC is divided by new walls between the basement and main and only one unit can control it. If you don’t live in that unit? Hope you don’t piss off the other tenants. Get ready for super cold winters and very hot summers.

Parking spots? How many single family bunglows have parking for 3 or more cars? Luckily these little towns don’t usually have laws for paving over the front lawn, or just parking on it as is.

In theory it seems okay – until you see the way they’re converting them.

Well run, decent, affordable – these are not adjectives I would ever use to describe the units I’ve seen. Even one year ago 2 grand would rent you an entire single family home in most of these cities. Now? Good lucky finding any single family home that is NOT converted into a duplex.

Unlike DIY amateur landlord conversions (that you just described) no corporate owner would contravene code or rental standards. – Garth

#37 Fool on 06.15.21 at 4:13 pm

WSB told me to buy 100,000 shares of Cineplex, but I bought it at the monthly high of $16.83. Now it’s barely struggling above $15.74.

#38 Ballingsford on 06.15.21 at 4:29 pm

#18 Adam on 06.15.21 at 2:55 pm
Thanks for picking my picture Garth! We bought a house in a dog park specifically for our pups, strange request for our realtor to hunt down but they do exist.

*******
Nice picture of one of your dogs, but what kind of house do you buy in a dog park? A dog house?

#39 Faron on 06.15.21 at 4:36 pm

#38 Ballingsford on 06.15.21 at 4:29 pm

#18 Adam on 06.15.21 at 2:55 pm

Nice picture of one of your dogs, but what kind of house do you buy in a dog park? A dog house?

They appear to live in a wetland. Adam and co are clearly a dog-keeping family of beavers.

#40 Peter Pickles on 06.15.21 at 4:42 pm

Unlike DIY amateur landlord conversions (that you just described) no corporate owner would contravene code or rental standards. – Garth

Actually all of what I described is perfectly legal in most cities. These smaller cities don’t have the same bylaws and buildings codes as larger cities. They’re taking advantage of weak regulations in these cities. That’s what makes this attractive.

You made that up. – Garth

#41 Juniper7 on 06.15.21 at 4:45 pm

Welcome to 2030. I own nothing, have no privacy, and life has never been better

#42 Matt on 06.15.21 at 4:50 pm

What we need is a rent control where the maximum rent that a landlord can charge cannot be more than the CMHC average for the city and number of bedrooms. This would make it unprofitable for most investors who will stay away from housing market and help to bring some sanity to the market.

Fewer rental options will make ownership more in demand, exerting price pressure. Maybe it’s different, however, on your planet. – Garth

#43 VladTor on 06.15.21 at 5:14 pm

to #4 Ian on 06.15.21 at 2:19 pm
to #11 crowdedelevatorfartz
to #29 DON

Two indicators
Lumber prices are falling
Condom sales are rising

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

Gentlemen’s,

Second indicator sounds very alarming for me.
Thank you very much to let me know.

I’m leaving blog right now for buying couple hundreds. I won’t to wait for FOMO for second indicator.

#44 Jake on 06.15.21 at 5:14 pm

If you don’t want your neighbours’ homes to suddenly become duplexes, towns or condos, don’t buy to live on a busy street.

More and more, I see rows of homes on busy streets like Yonge/Finch, Sheppard/DVP, Warden/Eglinton getting scooped up by developers to build multi-dwelling towns and condos.

The city can’t build land so this is the next evolution in urban planning.

#45 Rainman on 06.15.21 at 5:16 pm

We owned, then we rented and now we own again. I can tell you renting sucks for all sorts of reasons.

Then you rented badly. – Garth

#46 Sail Away on 06.15.21 at 5:19 pm

#40 Peter Pickles on 06.15.21 at 4:42 pm

“Unlike DIY amateur landlord conversions (that you just described) no corporate owner would contravene code or rental standards. – Garth”

———

Actually all of what I described is perfectly legal in most cities. These smaller cities don’t have the same bylaws and buildings codes as larger cities. They’re taking advantage of weak regulations in these cities. That’s what makes this attractive.

“You made that up. – Garth”

———

Haha. Perfectly legal.

Let’s go with illegal but often unenforced… Until someone dies due to code violation- then you’ll see lawyers converging for the feeding frenzy.

#47 Ponnaps on 06.15.21 at 5:21 pm

What they dont and won’t tell you…

Canada has printed 65% of all cad dollars in the last one year and made most of it available to big banks & corporations. This will lead to weakening of cad dollar.

Obviously, having assets in cad dollars doesn’t make sense if it’s just going to weaken.
To ensure that they are not left holding the bag, big banks and investment funds are buying real estate; even at much higher prices.

Any temporary losses will be recovered in the long term by increasing house rents all across the nation.

Price of lumber and steel have also been increased so that people can’t construct their own homes as easily.

In short, they have played the long game and common people are at their mercy.

This is what they meant when they said, ‘You will own nothing and you’ll be happy’.

You’ll be happy because they’ll tax the heck out of you and devise UBI (Universal Basic Income).

Dependent upon them for housing and food, and addicted to the entertainment funded by them, most people will be the modern equivalent of feudal peasants.

This will lead to a very slow but long recession, essentially a genocide of sorts where cost of living will slowly increase and people won’t be able to afford having children.

The rise in degeneracy will add fuel to fire and keep this madness going like substance abuse does to its victims

#48 Ponzius Pilatus on 06.15.21 at 5:23 pm

Chilled not, shaken.
Not so sure, Vancouver is due for a big one.
That could shake up things.

#49 Ponzius Pilatus on 06.15.21 at 5:26 pm

#11 crowdedelevatorfartz on 06.15.21 at 2:36 pm
@#4 Ian
“Two indicators
Lumber prices are falling
Condom sales are rising”

++++

I guess its true.
It takes a stud to build a house.
—————
Nope,
It takes a brick to build a house.

#50 Ponzius Pilatus on 06.15.21 at 5:32 pm

#35 Yukon Elvis on 06.15.21 at 4:02 pm
Got my second Phizer jab on Saturday in Kelowna. Zero side effects, in and out in ten minutes. Govts here did a good job imho.
————–
They did a super job.
Best in show.
Dr. Bonnie Henry should get the highest medal avaiable in Canada.

#51 cuke and tomato picker on 06.15.21 at 5:36 pm

We only rented for 6 months when we got married 50 years ago I agree with number 45 Rainman it better to
own than rent.

Elitist comment. Many cannot afford to own and foolish words like that just rend society. – Garth

#52 crowdedelevatorfartz on 06.15.21 at 5:41 pm

@#49 Ponzie’s Pile
“It takes a brick to build a house.”

+++

“Thick as a brick” comes to mind….

#53 Rainman on 06.15.21 at 5:45 pm

We owned, then we rented and now we own again. I can tell you renting sucks for all sorts of reasons.

Then you rented badly. – Garth

1. rented and got evicted because of sale
2. rented again and got evicted again because of sale
3. bought lot and built and house has more than doubled in price in less than 5 years.

How did I rent badly? Just saying how it happened and the outcome.

#54 Ponzius Pilatus on 06.15.21 at 5:45 pm

Have a look at the attached photo.
JT the Leader of the Free World.
Even Biden is following him.
https://www.stern.de/p/plus/politik/politikwissenschaftler-nach-g7-treffen—russen-koennen-eine-menge-unruhe-stiften–30569590.htm

#55 Pricedoutmillenial on 06.15.21 at 5:47 pm

Now, how could this possibly be a bad thing?

Will Core (and maybe others) compete for a limited number of homes and drive prices up?

Nah. It needs to purchase properties at the best price possible to make the economics work, and is highly unlikely to compete with any individual bidder.

——————————————————————-——————————

This can be true only if no one else wants to buy the property. They also have capital that needs to be deployed and cannot sit idle. The end result might help the rental market but when they are buying up places, they are still competing against other potential buyers and will contribute to an increase in price. More competition..more demand..atleast will cause a marginal increase in price.

Nope. The houses will sell anyway. Emotional dewy-eyed couples always pay a premium over those who need to make a buck. – Garth

#56 AM in MN on 06.15.21 at 5:48 pm

#42 Matt on 06.15.21 at 4:50 pm

What we need is a rent control where the maximum rent that a landlord can charge cannot be more than…..

———————————————

Never!

What you need, what you always need, is LESS govt. intervention in the market. This means scrapping CHMC and any program like it and putting the central bank on a leash as far as printing money goes.

Private property rights, sound money, the rule of law… always the ticket to prosperity for the masses over the long haul.

#57 crowdedelevatorfartz on 06.15.21 at 5:49 pm

Speaking of “Thick as Brick”

https://www.burnabynow.com/coronavirus-covid-19-local-news/burnaby-south-mp-trying-to-block-cuts-to-federal-covid-19-benefits-3877699

The fiscal idiot has spoken…..

#58 S.Bby on 06.15.21 at 6:12 pm

I’ve been an owner (an actual owner with no mortgage) and a renter. I prefer renting because there’s more freedom and not being tied down to a house.

#59 IHCTD9 on 06.15.21 at 6:14 pm

DELETED

#60 NOSTRADAMUS on 06.15.21 at 6:24 pm

BRAINWASHED!
Too many River Boat gamblers (today’s Real Estate speculators) have embraced a brainwashing’s cult belief that you can’t go wrong with owning Real Estate. Lets just say, when you’re in a cult, that line of thinking will either not shift at all, ever, or take so long it might as well be forever. Reminds me of the Manson family. I believe after 50 + years of incrassation, some of his family have seen the light and would like to be released from prison. Not going to happen. As time moves on, it will come to pass that a lot of speculators will be playing “Hidey in the house” mode for years, some you may never see again. The bankers will decide when you are to be released. You can call me a dreamer, but I’m not the only one.

#61 VGRO and chill on 06.15.21 at 6:24 pm

#1 none on 06.15.21 at 1:56 pm
I agree. the whole ‘you’re not an adult til you own a house’ is juvenile and stupid. Indeed, needing to own a place to full fill a societally mandated believe is the behaviour of a child and not an adult.

—–

I concur.

Saying “You aren’t an adult until x” is someone saying they don’t respect you unless you are like them. Because they are so amazing and incredible, their choices so perfect and sound, that if you made different ones you are aren’t to be taken seriously. Your choice is wrong, juvenile. You are in the minority, you stand out as different. There’s something wrong with you, you behaved differently.

In life you can take the well beaten path and you rarely need to defend your actions. There is comfort in normalcy. At least if you made a bad choice, so did everyone else. There will be some company among the misery.

It takes guts to live your life differently. You need to be secure in your identity, what you want out of life, and what your plans are. You don’t need any self assuredness to take the beaten path.

Only the dead fish go with the flow.

#62 IHCTD9 on 06.15.21 at 6:28 pm

#49 Ponzius Pilatus on 06.15.21 at 5:26 pm
#11 crowdedelevatorfartz on 06.15.21 at 2:36 pm
@#4 Ian
“Two indicators
Lumber prices are falling
Condom sales are rising”

++++

I guess its true.
It takes a stud to build a house.
—————
Nope,
It takes a brick to build a house.
——

I’ll go with stone (hand split), and timber (hand hewn).

151 years and counting.

I get CEF’s insinuation though :)

#63 alexinvestor on 06.15.21 at 6:32 pm

Blackrock is also buying houses in the US utilizing their low cost of capital. They are thus capturing the gain from using leverage from would-be homeowners who would have otherwise realized this gain. Over the long term, people in the US who didn’t buy will become losers. This is a bad thing.

Canada is in a different situation because the home prices are too high already. If Blackrock were to buy in now, they will lose a lot of money if house prices were to decline by 20%.

#64 IHCTD9 on 06.15.21 at 6:43 pm

#54 Ponzius Pilatus on 06.15.21 at 5:45 pm

Have a look at the attached photo.
JT the Leader of the Free World.
Even Biden is following him.
https://www.stern.de/p/plus/politik/politikwissenschaftler-nach-g7-treffen—russen-koennen-eine-menge-unruhe-stiften–30569590.htm
— –

Ponzie, what the heck, I can’t read a damn word of that.

I assume it must say Trudeau has been making the rich richer more than any other country in the G7?

#65 IHCTD9 on 06.15.21 at 6:53 pm

#50 Ponzius Pilatus on 06.15.21 at 5:32 pm
#35 Yukon Elvis on 06.15.21 at 4:02 pm
Got my second Phizer jab on Saturday in Kelowna. Zero side effects, in and out in ten minutes. Govts here did a good job imho.
————–
They did a super job.
Best in show.
Dr. Bonnie Henry should get the highest medal avaiable in Canada
——-

I along with my eldest got jab #1 this am at a local College. It was like a production line. People streaming in, people streaming out. Gave me some faith in the public service. Hopefully I will be able to vote these particular folks into federal office.

Trudeau definitely had nothing to do with it, based on how well it was organized and executed…

#66 Nonplused on 06.15.21 at 6:53 pm

One of the advantages of renting from a company like Core is that they are less likely to give you an eviction notice because they want to flip the property.

But it also sticks a fork in the whole “capital gains tax” argument on primary residences. Yes, Core’s properties will be subject to capital gains taxes, but they may never sell. Corporations don’t die unless they go broke. The capital gains will come from shareholders if the share prices goes up.

#67 IHCTD9 on 06.15.21 at 6:56 pm

#48 Ponzius Pilatus on 06.15.21 at 5:23 pm
Chilled not, shaken.
Not so sure, Vancouver is due for a big one.
That could shake up things.
——

And it’s actually overdue…

#68 Habitt on 06.15.21 at 6:59 pm

#17 Dogman01 I agree worst government ever. They want to appoint peoplekind peoples to all the top positions. You have to believe the others just don’t get it. Just look at the federal cabinet. Like Dianne Francis said, amateurs hiring amateurs.

#69 Faron on 06.15.21 at 7:03 pm

Congratulations to those getting their first and second vaccinations. Keep trucking.

#70 Kat Cristoff on 06.15.21 at 7:04 pm

Millennials will soon experience the creeping horror that they’ve gone “all in” on a 25 year “death pledge” to the big banks. They will end up paying the original cost of the property over again in interest. They will pray that real estate continues at its current inflation beating rate, but they don’t know that will happen. They could have just waited and bought during a buyers market but instead they caved to peer pressure and the lies of the Corporate backed FOMO mongers.

Just thinking about this coming reckoning gives me shudders.

#71 IHCTD9 on 06.15.21 at 7:11 pm

#27 Sail Away on 06.15.21 at 3:33 pm
#149 IHCTD9 on 06.15.21 at 1:31 pm

It’s a transitional phase we all live in right now. Borders are fading, the concept of work changing, to eventually cumulate in almost no work done by humans at all.

——-

I’m with you. A lot of jobs are already frivolous and cater to desires and luxuries instead of needs. Advances in automation, control systems, AI are all racing forward.
—-

It’s a shame I can’t live to be 250. I’d love to see how it all turns out :).

#72 Sail Away on 06.15.21 at 7:19 pm

#67 IHCTD9 on 06.15.21 at 6:56 pm
#48 Ponzius Pilatus on 06.15.21 at 5:23 pm

Chilled not, shaken.
Not so sure, Vancouver is due for a big one.
That could shake up things.

——–

And it’s actually overdue…

——–

We engineers hope for either:

1. A small earthquake that damages nothing so we won’t get sued, or
2. A huge earthquake that destroys everything so we won’t get sued

#73 Still learning on 06.15.21 at 7:22 pm

This housing market is a mess and nothing will save it.

I wish we would’ve bought now five years ago. renters in Van are indeed treating as ‘trash’ and I have lots of experiences now to prove it.

Plus have several friends getting reno-victed – 2 of whom are seniors and won’t be able to find anything remotely for what they’ve been paying for. Absolute Gong show here on the West Coast.

everything is getting torn down.

Now here’s what’s driving it. I work as an extra in film. Another extra brags to me about the multiple condos he owns, in addition to his main property and a property in the states. first off how did he land the first property? Eldery parents. Second he skirts AirBnB restrictions in his 2 condos by renting out for a ‘month’. Anything less than a month is short term so he is careful not to do that, but a month or longer is considered long term so he gets away with using AirBnB. He admits he has to charge at least $3,000 to cover the mortgage since one is at $750000.. the other I think he said $550 (maybe). Anyway so he rents to film people coming in who are working short durations. However, those units should be for people who LIVE here long term and pay taxes. i.e. the decent suites are gobbled up by these ‘investors’. You are right indeed – we CDNS are screwing each other badly.

Sorry Garth but you don’t really realize how bad it is in Vancouver..

signed someone who believes in your rationale, but reality is playing out differently…

#74 crowdedelevatorfartz on 06.15.21 at 7:24 pm

@#72 Sail Away

Good one.

#75 IHCTD9 on 06.15.21 at 7:32 pm

#73 crowdedelevatorfartz on 06.15.21 at 7:24 pm
@#72 Sail Away

Good one
– –

Hehehe – agreed!

#76 IHCTD9 on 06.15.21 at 7:37 pm

#72 Sail Away on 06.15.21 at 7:19 pm
#67 IHCTD9 on 06.15.21 at 6:56 pm
#48 Ponzius Pilatus on 06.15.21 at 5:23 pm

Chilled not, shaken.
Not so sure, Vancouver is due for a big one.
That could shake up things.

——–

And it’s actually overdue…

——–

We engineers hope for either:

1. A small earthquake that damages nothing so we won’t get sued, or
2. A huge earthquake that destroys everything so we won’t get sued
——

Well, everything I’ve read says when it comes, it’ll be a biggie – so you’re uh – safe. :)

I’d guess that’d fix the housing market out there too!

#77 tbone on 06.15.21 at 7:47 pm

Pharmacist told me today one of his customers didnt believe in getting a vax , caught covid from his grandson
and didnt make it . He was 63.

This sh!t is real . Dont take it lightly . Get a vax .

#78 Sam on 06.15.21 at 8:06 pm

https://toronto.ctvnews.ca/working-from-home-is-here-to-stay-studies-show-1.5471723

#79 IHCTD9 on 06.15.21 at 8:11 pm

Eldest right now is playing a game online with buds. Youngest is doing a test (still in HS) – online. I’m posting here – online. Ms. IH is reading a book. The book is the basis for a movie she watched on Disney+ (online obviously) last week.

I think Elon is going to do OK with Starlink.

#80 Father's Daughter on 06.15.21 at 8:26 pm

We need a better rental supply. So many people that I know have no issue with renting, however have an issue finding a decent place (even with a good budget). Small cities often have few detached home rentals available, probably leading people to make terrible decisions in buying one for themselves. Our leased house is owned by a family who relocated overseas, but could come back anytime. I would prefer to be in a house that I know is meant to be a long-term rental, as our last one was. There was never a fear of eviction. I look at the rental market all of the time in our broad area and the houses available are very few and far between, and because of that, climbing in price.

#81 IHCTD9 on 06.15.21 at 8:46 pm

#61 VGRO and chill on 06.15.21 at 6:24 pm
#1 none on 06.15.21 at 1:56 pm
I agree. the whole ‘you’re not an adult til you own a house’ is juvenile and stupid. Indeed, needing to own a place to full fill a societally mandated believe is the behaviour of a child and not an adult.

—–

I concur.

Saying “You aren’t an adult until x” is someone saying they don’t respect you unless you are like them. Because they are so amazing and incredible, their choices so perfect and sound, that if you made different ones you are aren’t to be taken seriously…

—- ——

On the flip side, simple math can lead you to the right decision. Like Corey from yesterday’s blog staring down a 5K monthly as a single 41 y/o – for a bloody gta semi…

If you can keep the emotions out of it, it’s a no brainer in some areas of Canada. As long as you can rent and pack it into a tax shelter at the same time. It’ll be hard to say you made a mistake if you have a roof over your head, and live well off a fat tax advantaged portfolio.

If I were Corey, I’d turn a blind eye to RE, make a plan to retire early, execute, and never look at the MLS again.

#82 Wrk.dover on 06.15.21 at 9:08 pm

#1 none on 06.15.21 at 1:56 pm

My kid in law is putting in an offer this Friday. I think it’s amazingly stupid as they will be massively overly leveraged. I know we tend to joke around the impact of a couple hundred grand in our lives

________________________

48 years ago, my father was aghast that I had borrowed $2000 @11% over 24 monthlies to buy a brand new car!

Simpler times back then. It got me to work.

And I quickly learned, I like neither working for or making payments. Fixed that 33 years ago.

M67NS

#83 Ponzius Pilatus on 06.15.21 at 9:41 pm

#82 Wrk.dover on 06.15.21 at 9:08 pm
#1 none on 06.15.21 at 1:56 pm

My kid in law is putting in an offer this Friday. I think it’s amazingly stupid as they will be massively overly leveraged. I know we tend to joke around the impact of a couple hundred grand in our lives

________________________

48 years ago, my father was aghast that I had borrowed $2000 @11% over 24 monthlies to buy a brand new car!

Simpler times back then. It got me to work.

And I quickly learned, I like neither working for or making payments. Fixed that 33 years ago.
———–
Good story.
These days, 2k would not even cover the monthly payment on a new fully loaded F-150.

#84 None on 06.15.21 at 10:08 pm

#81 IHCTD9
——

Problem is that going massively leveraged in Residential RE has been a clear winner on the west coast for the last 15 years. Hard to break a fever when it’s been such a solid winner.

hard to defend with ‘past performance does not indicate future returns’; ‘a rise in an asset price reduces its future expected return’ or ‘buys are rich and renters are not’ after these past 15 years. My partner won’t listen to me and it’s full on FOMO! Sucks – i now live alone :(

#85 crowdedelevatorfartz on 06.15.21 at 10:15 pm

Hmmmm

Rocket man needs a Million TONS of food this year to stave off mass starvation…

https://www.citynews1130.com/2021/06/15/kim-warns-of-tense-food-situation-longer-covid-lockdown/

Could “Chubby The Kim” start firing nukes around to get more food?

#86 Al on 06.15.21 at 10:20 pm

Hi Garth,
I have been reading your blog for a number of years. My favourite saying of yours is “The Socialist Republics of Hockeystan”, very close to my Russian heart, I grew up and lived in Soviet Union/Russia prior to immigrating to Canada in 2000. Strangely enough, I am yet to find a mention in any Western media, that not working in Soviet Union was a punishable crime. Call it propaganda, it was engrained in our brain that happiness is in work that you enjoy. Which I have been on both sides of the ocean. Back to the investments. I have been investing in everything I can – company shares, RRSP’s, credit card points, real estate including rental housing. I wouldn’t
call investing in real estate a passive income, in my case it involved my countless manhours (and maxing out HELOC’s and even credit cards). Shockingly, last 16 months delivered more asset appreciation (3 properties West of GTA), than 21 years of building stocks/etf portfolio. Roughly it’s 600G’s against 500G’s. In between cashflow, mortgage interest write offs and appreciation it delivered a decent return on initial investment, which could be expected on ever riding real estate market. It’s past performance, anyway. And no, I am not going to retire for another 19 years (I am 56 now). I love what I do – happiness is in work. I am not postponing my life either, I have a big family, training 4 times a week, and use all of my vacation to travel mostly overseas (pre covid)

#87 westcdn on 06.15.21 at 10:25 pm

Remember one person’s debt is another other one’s asset. Think pensions. Central Banks will not allow debt repayment to fail. Rolling it over is their game even it is a poor excuse for management and will lead to cash being worth less. It will lead to hard assets being worth more.

I read a story about an American student in Berlin 1924 was able to buy a block of residential housing from the US$ his parents were sending him for US pennies.

Lets not forget money is just a tool to measure value. People matter most if they get off their asses. (I am going to suffer for this one)…

#88 AlbertaGuy In AB on 06.15.21 at 10:30 pm

#8 Penny Henny on 06.15.21 at 2:27 pm

That was me…your welcome..everyone else .. go get it

https://www.greaterfool.ca/2021/06/02/light-it-up/#comment-784169

#89 crowdedelevatorfartz on 06.15.21 at 10:30 pm

@#82 wrk.dvr
“48 years ago, my father was aghast that I had borrowed $2000 @11% over 24 monthlies to buy a brand new car!

++++

A Honda Civic?

https://www.carsguide.com.au/honda/civic/price/1974

#90 film extras on 06.15.21 at 10:31 pm

When film extras are priced out of one of the most expensive cities in the world we really are doomed.

What’s next, no lifties at Whistler?

#91 Dr V on 06.15.21 at 10:33 pm

73 still learning

“Anyway so he rents to film people coming in who are
working short durations.”

Sooo…..this is a bad thing? Seems to me he’s filling a demand. These people are coming to Van to work, and need a place for a couple of weeks to a month or two.
Is $3k out of line for “local” rent on one of these units?
Does he get months when the units are vacant? If he nets more than renting them longer-term, that’s just good business.

#92 Puking up Smack on 06.15.21 at 11:29 pm

Marriott Homes and BlackRock Property collectively own millions of houses. They are only the largest, not alone in the business. The media might have forgotten but Sub Prime and Alt-a’s are still flooding the US market.

#93 David Greene on 06.16.21 at 12:00 am

Garth, whether or not he made that up, many many rentals are poor. The fact that you can’t see that means you have a blind spot. I agree, no one should be ashamed to rent, but in many cities, and some smaller areas, you have very very little control over your living environment. In important ways, not in the luxury sense.

—————————————————–

#40 Peter Pickles on 06.15.21 at 4:42 pm

Unlike DIY amateur landlord conversions (that you just described) no corporate owner would contravene code or rental standards. – Garth

Actually all of what I described is perfectly legal in most cities. These smaller cities don’t have the same bylaws and buildings codes as larger cities. They’re taking advantage of weak regulations in these cities. That’s what makes this attractive.

You made that up. – Garth

#94 NSNG on 06.16.21 at 12:17 am

So is this latest G7/NATO summit the peak for Trudeau? He looks way too happy. I think this could be the beginning of his new life (which may not resemble what he has grown accustomed to up to this point)

#95 TurnerNation on 06.16.21 at 1:23 am

The New System. New Green Deal. Never ending global government control incoming.
March 2020 was used as cover to shut down the old system and Build Back Better.
Masterfully rolled out. Got to hand it to them.

Of course control over our Movement/Travel is key.

https://swarajyamag.com/analysis/a-40-trillion-global-infrastructure-plan-g7-unveils-build-back-better-world-b3w-to-challenge-chinas-belt-and-road-initiativebri
A $40 Trillion Global Infrastructure Plan: G7 Unveils ‘Build Back Better World’ (B3W) To Challenge China’s ‘Belt And Road Initiative'(BRI)

https://bc.ctvnews.ca/city-wants-to-charge-you-more-to-park-all-over-vancouver-especially-if-you-have-a-luxury-car-1.5469738
The proposal is part of the city’s Climate Emergency Action Plan, designed to lower pollution and encourage people to buy electric vehicles, and residents can give their input on the plan online

No this will not be going away, The control only intensifies. Slowly getting us off the land…

https://bc.ctvnews.ca/park-passes-will-be-required-at-these-b-c-parks-this-summer-as-officials-hope-to-curb-crowds-1.5471149
The pilot program was first introduced last summer in an effort to reduce the number of people visiting some parks during the COVID-19 pandemic. The initiative is launching again next week, but with a few changes.

#96 Jane24 on 06.16.21 at 2:22 am

Here in England housing intensification and brown land development have always been govt polices as they make our communities cheaper to run and protect our green space. Every community here regardless of size cannot expand into surrounding countyside without major permissions that the media prevents so we don’t have the North American soul destroying miles of suburbs.

City homes often look like the original single family from the outside but the upstairs is a separate one or two bed flat. The only sign this is two dwellings is often the double mail box. Here where I live in a town suburb we are positively encouraged to sell off big gardens to allow another detached home to be built. The original driveway then becomes a small private road.

The idea is always to use what is there for extra housing, rather than green land.

#97 Tyberius on 06.16.21 at 2:45 am

Why are some people posting their vaxx status here? Reminds me of my teenage years when some boys bragged about losing their vir—-ty. No one cares about your gene therapy. Grow up!

#98 Nonplused on 06.16.21 at 3:09 am

You know, life was never easy.

https://www.youtube.com/watch?v=u1ZvPSpLxCg

#99 Howard on 06.16.21 at 3:58 am

If Core Developments were building brand NEW housing stock to turn it into rental subdivisions, I would agree it’s a good thing.

But they seem to be just buying up existing stock, which adds nothing to alleviate the housing crisis. Fine, they’ll duplex some of the homes to create a few new units, won’t have much of an impact.

#100 Under the radar on 06.16.21 at 5:57 am

What Core is doing requires an army of trade’s. Not to mention the distances that need to be covered to attend tenants breakdown and complaints.
Many of the giant funds in the United States that are doing this bought thousands of homes during the great recession in 2008 when prices melted in the US housing market. Corey is buying at peak price in Canada with a patchwork of provincial legislation that largely protects tenants. The legislation in many states with respect to tenants rights favours the landlords. Not going to be profitable

#101 Wrk.dover on 06.16.21 at 6:57 am

#89 crowdedelevatorfartz on 06.15.21 at 10:30 pm
@#82 wrk.dvr
“48 years ago, my father was aghast that I had borrowed $2000 @11% over 24 monthlies to buy a brand new car!

++++

A Honda Civic?

https://www.carsguide.com.au/honda/civic/price/1974

_______________________________

You are off a year. Civic was introduced in Canada in 74 though. You show a USD price, though the CDN$ was higher in value, it cost more here!

Close guess though. Another hint, one penny/mile for fuel.

#102 crowdedelevatorfartz on 06.16.21 at 8:24 am

@#101 wrk.dvr
“Close guess though. Another hint, one penny/mile for fuel.”

+++

OMG. You didnt buy THIS did you?

https://www.hagerty.com/media/car-profiles/amc-pacer-is-an-automotive-legend/

Was it true you could make a 6 foot sub sandwich in the back?

#103 Dharma Bum on 06.16.21 at 9:14 am

Renters of SFHs amongst owners os SFHs in the same neighbourhood?
How long until the NIMBY faction starts screaming?
Renters and Owners living together.
THAT’S HYSTERIA!!!

https://www.youtube.com/watch?v=-9NMt42il4Q

#104 NoName on 06.16.21 at 9:30 am

@jane24

Funny soulless NA suburbs, vs protected green space on island…

When you think about how land ownership worked over there on island for lets say last millenia, what you wrote is even funnier.

I dont think that magna carta was invented to protect common vilagers, pesantry, serfs, cottars and roommor was there were some slaves there. MC, was there for one reason only to protect land owners and their green space.

But i think that there is more to it why they want urban backyards.

Anecdotal story. Ive been following some dude on twitter, wrealy impressive dude. For a longest time i tought he was definitely some fin. wiz kid. Knows everything about cycles and this and that. I thought he is running sone investment company, in a sesne he is but only and i say that only one more time. He “invest” in urban properties and on their footprint he builds higher dencity low-rises.

How is Italy and France now days?

#105 Don on 06.16.21 at 9:32 am

#7 Yin and yang

It is all about location. Where I live there are no rooming houses or drummer boys renting basements. AMOF, there are no basements to rent and no one renting out their basements either. Doesn’t matter if someone paid 2 Million, if it is a dumpy location, now he/she owns a 2 Million dump. And I dont live in a dump. Houses here are 4 to 10 and no basement squatters. Mind you, I didn’t pay 4 m. I chose the location and paid a premium.

#106 Blobby on 06.16.21 at 9:53 am

@#9 Ranymo:

Maybe they bought houses to store all the bottom cleaners they’d bought?

#107 Wrk.dover on 06.16.21 at 10:08 am

#102 crowdedelevatorfartz on 06.16.21 at 8:24 am

The Hornet was the cheap AMC at the time. Gremlin was too ugly to stereotype a teen with. Test drove both, seemed like tractors. Tried the Pinto, same deal. Fiat 128, nah (later became the Lada copied). Wouldn’t look at the Vega. VW and Japanese, nope and all nope.

mini. $2100 out the door with tax and plates included.

#108 IHCTD9 on 06.16.21 at 11:24 am

#84 None on 06.15.21 at 10:08 pm
#81 IHCTD9
——

Problem is that going massively leveraged in Residential RE has been a clear winner on the west coast for the last 15 years. Hard to break a fever when it’s been such a solid winner.

hard to defend with ‘past performance does not indicate future returns’; ‘a rise in an asset price reduces its future expected return’ or ‘buys are rich and renters are not’ after these past 15 years. My partner won’t listen to me and it’s full on FOMO! Sucks – i now live alone :(
——-

Aye, but realistically; if past gains happen again in the future over the same number of years, no one will be able to afford a home at all – period.

In-laws just sold in KW On. Bought 20 years ago for 130k, sold last week for 700k. Will that house sell for 4 million in 20 more years? Common sense tells me wages won’t grow enough, the BOC can’t drop another 5 points like it did over the last 20 years, and a 30 year amortization at 1.6 is still a 14k monthly on 4 mil, with a 200k dp.

I have to think the gigantic gains ship has sailed. Houses may never be cheap again, but going forward much will be different (internationally mobile work force, way less marriage/kids, short term work etc…) and it could put natural pressure on prices over a long period of time. To say nothing of what would happen if rates eventually climb back to 5+%…

Long time required though. For the here and now, a cold philosophical position, and a stiff upper lip is probably best. RE ownership just might not happen for some folks, and that doesn’t have to be a problem. It might even be the best decision they ever made…

#109 Cheerypip on 06.16.21 at 11:49 am

@Jane24 the only brown space is between your ears and coming out of your mouth / fingers.

#110 LesserApe on 06.16.21 at 11:54 am

Wow, reddit’s response to the Core news is terrifying.

https://old.reddit.com/r/canada/comments/o13qzi/what_a_developers_plan_to_buy_1b_in_homes_could/

People seem to have no clue how businesses work, how competitive markets work, or how big the housing market is. They seem to think that with a billion dollars, a corporation can buy up a bunch of real estate 20% above market values, charge rent above market values, and then sell the real estate at a great profit a couple years later.

It makes me sad that people consider this stuff so important, but have no clue how the world actually functions. :(

#111 crowdedelevatorfartz on 06.16.21 at 11:58 am

@#10 Wrk.dvr

A mini .
Well well well.
I had a friend that owned a Gremlin that he hot rodded up.
Scary fast. Lotsa tickets.
Another friend had a Javelin hot rodded up.
He used to beat Corvettes on the HFX Airport Highway.
He once drove to Truro from Dartmouth in the middle of the night in about 37 minutes.
He’s still alive but the fast cars are long gone.

#112 Sail Away on 06.16.21 at 12:53 pm

Haha, all these automakers with their news releases about electric and projections about battery factories, expenditures, charging outlets, expected sales:

https://www.wsj.com/articles/gm-raises-electric-car-bet-will-add-more-battery-factories-11623851292?mod=hp_lead_pos10

…when the top dog has already doing all of that for years. Who? Funny you should ask. Take a look:

https://www.statista.com/statistics/960121/sales-of-all-electric-vehicles-worldwide-by-model/

#113 So glad I sold on 06.16.21 at 4:55 pm

Congrats Garth and Dorothy. Arysha who looks so adorable is so lucky to have found you both for her forever home.

#114 mark on 06.16.21 at 6:30 pm

Let’s mix mRNA vaccines cuz we can’t give ya 2 doses of same manufacturers vaccine. Wonder why 30% of Populus will void vaccination. Brilliant…

#115 Anna on 06.17.21 at 6:55 pm

I like the picture of the dog.