The ‘N’ word

Expect change in the real estate market over the coming months. More sellers. Fewer buyers. Sales volumes declining. Less obsession with housing as the economy opens and people travel, recreate, shop and do all that stuff which was forbidden for more than a year.

At the same time offices and workplaces will reopening. Not a gush, but a steady stream. Not everybody will be called back, but enough to raise serious questions about the viability of living in Tillsonburg, Hope or Tatamagouche. Suburban and hick-city valuations will flatline, if not decline. Urban prices, especially for condos, will stay robust.

Bidding wars will calm. Buyers will accept any offer. Blind auctions will disappear in many markets. Any doubt about the sifting sentiment should be quashed by an article just published by Re/Max, probably the pumpiest of the house-humping real estate outfits in the land. “There are signs that the spike in prices has peaked,” it says, which means FOMO is a risk. In fact Re/Max has just used the ‘N’ word. Yes (shudder), “negative.”

If people are diving into the real estate market now and pay way over the asking price, it is more than likely that they will not experience the same level of growth. As a result, many new homeowners will be stuck with negative equity on their properties for many years to come.

To punctuate that thought the company actually quotes BMO econoguy Robert Kavic, saying, “It’s not hard to see a scenario where froth comes out and the last buyers in (especially in a blind-bid scenario) are faced with years of negative equity.”

Note to Kids: Negative equity occurs when the value of your house falls below the principal amount you owe on a mortgage. In a world where 20x leverage is common and people buy with just 5% down, even a modest market reversal (of, say, 10%) can make this happen. So long as that persists, the property is unsaleable without a cash infusion from the owner on the day of closing.

For example, a $685,000 condo purchased with 5% down would have financing of $651,000 (after paying closing costs with cash). Adding in the CMHC insurance would boost the debt to $670,000. If the market fell 10% the unit would be worth $616,500. After selling it and paying commission of $31,000 the owner would be left with about $585,500, yet owe up to $670,000. Therefore the poor seller would have to write a cheque for up to $84,500 to close a sale. Or just live there and carry a debt for more than the place is worth (paying a premium to someone who leases an identical unit) and hope for the best.

Now imagine a 15% decline. Or the 32% plop that happened at the end of the last crazy spike in Canada (when the market took 17 years to recover).

Seriously. This is where history matters. And negative equity could easily return. (Reread yesterday’s post.)

Oh, wait. Here’s some extra news about urban real estate ownership.

Turns out the pandemic’s been especially gnarly for condos – which may become apparent soon to unsuspecting owners. Condo (or strata) fees are a big deal. They cover common spaces, utilities, insurance, maintenance and usually water, plus security, cleaning and more. The normal charge is 60 to 75 cents a foot, but can range up to a dollar (and often rise as a building ages). So a modest 600-foot box would cost about $400 a month in fees (plus financing, property taxes and other utilities).

The fees are set by the condo board, comprised of elected owners and perhaps the management company. Each condo corp is audited and required to maintain a sizeable reserve fund to cover preventative maintenance and special items. Monthly fees can be increased by the board pretty much at will, and condos can’t engage in deficit financing (unlike our leaders). So when costs rise, they must be covered.

Enter Covid.

The slimy little pathogen has been expensive. PPE for staff members. Pandemic supplies and sanitizer. Enhanced cleaning of common spaces. More security services. And, above all, water. With so many people WFH, the consumption of H2O has turned epic. Imagine a condo complex with several hundred units in it, full of people working in their jammies all day, using the loo and bathing the pandemic puppy.

As chartered accountant and condo consultant Stephen Chesney has pointed out, water consumption has shot up by as much as 40%. “In a typical high-rise building, the water expenses can be between $100,000 and $200,000 per year,” he says. And there’s nobody to pay, other than unit owners.

Unfortunately, many boards will now have to increase monthly condo fees by a significant amount or even pass a special assessment onto the owners to cover the deficits. At a time like the one we find ourselves in now, this will not be an easy task, nor will it be well received by the owners.

So, prepare for the hike. Or, you can rent. Let the poor schmuck who bought the unit worry about the monthly. Pee hourly. Revenge.

About the picture: “It’s been 10 yrs since I sold my house and got on the plan with you,” writes Scott,  from BC’s Lower Mainland. “Here’s one for the blog. This is Seger, our 6 yr old Rotti x Malamute. He’s looking forward to us retiring and more lake days (soon).”

123 comments ↓

#1 Transparent on 06.22.21 at 1:12 pm

All this talk about transparency with BoC and Government and policies and interest rate yesterday.

Then I read this in the National Post that made me wonder…

“That’s an important point — worth repeating. Normally, when a Canadian politician doesn’t want to reveal something, that’s just the default Canadian hostility to transparency shining through. Getting information out of Canadian government officials is routinely like pulling teeth — actually, no, I’ve had teeth pulled, and at least there was painkillers before and after. Disclosure of even basic government information is notoriously difficult for even members of the media, and we’re well-connected and generally learn how to work within the disclosure systems, such as they are. If you’re just a member of the public, God go with you. Sorry. That’s all I’ve got.”

https://nationalpost.com/opinion/hotel-quarantine-is-going-to-finally-end-but-the-liberals-are-still-clueless

#2 Mark on 06.22.21 at 1:22 pm

Much caution being signalled for anyone paying any attention to listings lately. blind offers failing horribly, only for the ad to be deleted and the property to be re-listed 10-20% higher in hopes of a “lowball” that would bring it back to the original asking price. Disgusting. Let’s hope the Average Joe is smarter than this. But if history is any indication, they aren’t. so this will be a brilliant strategy until it isn’t. thank you, real estate cartels.

#3 Renter on 06.22.21 at 1:22 pm

“Good morning Land Lord. Me toilet is plugged with my Saturday morning deposit, would your Lordness come and plunge it for me posthaste?”

#4 crowdedelevatorfartz on 06.22.21 at 1:24 pm

Fast Food stores know whats coming….

https://www.reuters.com/business/us-fast-food-chains-cut-discounts-push-pricy-meals-post-pandemic-2021-06-22/

#5 Millennial 1%er on 06.22.21 at 1:30 pm

Blood in the streets. Cash in my pockets.

All jokes aside hopefully not too many people get screwed

#6 Doug t on 06.22.21 at 1:32 pm

gas is up 10 cents here in Victoria – summer is going to be expensive for alot of things

#7 SoggyShorts on 06.22.21 at 1:32 pm

#128 Math is not so hard on 06.22.21 at 8:20 am
Last math lesson of the day, which I never would have thought needed to be explained, but soggy minded thinking abounds.

A 30% return on $1M home is better than a 150% return on a $100,000 stock portfolio is better than a 1,700% return on a $5,000 stock portfolio.

% alone is meaningless.
**********************
Again, you are assuming everyone lives in Ontario.
Houses in AB for example went down in price, so how great is 20x leverage plus closing costs there?

I don’t know how many different ways I can tell you that house prices aren’t the same across Canada.

Also, show your name coward.

#8 CL on 06.22.21 at 1:35 pm

whether you own a house or condo the *fees*, another word for expenses….are the equivalent of owning a home. You still have to pay utilities, insurance, maintenance and repairs etc. You pay one way or another. There is no free lunch. The only real difference is that if you own a house you are on your own if you need a roof, hot water tank,furnace, windows…..it’s all relative.

#9 Billy Buoy on 06.22.21 at 1:54 pm

#4 crowdedelevatorfartz on 06.22.21 at 1:24 pm
Fast Food stores know whats coming….

https://www.reuters.com/business/us-fast-food-chains-cut-discounts-push-pricy-meals-post-pandemic-2021-06-22/

—————————————————————

Interesting, in NYS the chains are couponing as if their franchisees lives depend on it..

2 Jr. Whoppers, 2 small fries, 2 small soft drinks For $5 USD with coupon last week.

I’ll only sacrifice my health a few times a year only if it’s cheap enough to do it.

$10 plus for these garbage meals? I’ll eat weeds instead.

#10 RENTERS REJOICE on 06.22.21 at 2:05 pm

DON’T BE AHOME MOANER. LET THEM THINK THEY ARE RICH WHILE THEY GET STUCK WITH ALL THE BILLS. THIS IS WHEN THE MEEK INHERIT THE EARTH. THE DEBTS AND BILLS WILL EAT THE HOME MOANERS ALIVE WHILE THE RENTERS LAUGH ALL THE WAY TO THE BANK

#11 Doug in London on 06.22.21 at 2:09 pm

Negative equity you say? Once again the time tunnel has sucked me in and shot me back to 1990. Say, has anyone heard that new tune Jamie’s Got a Gun by Aerosmith? How about Blue Sky Mine by Midnight Oil (from Australia) or Freefalling by Tom Petty? Is it true that East Germany and West Germany will be reunited this year?

#12 tkid on 06.22.21 at 2:09 pm

Pee hourly? Thank you for the laugh of the week! I had not thought of renting in that light, but I will take your advice to heart!

#13 Cliff on 06.22.21 at 2:13 pm

I think the Gods were smiling on us when our offer on a strata (rental pool) condo was refused in Osoyoos because it was too low. Little Osoyoos (5000 people) had convinced itself that they were entitled to a +15% premium on their stuff just because it happened in Kelowna. We walked away and were happy because we learned many things in the process – such as there is GST on a rental pool apartment selling price, and only Guido the loan shark will lend you money for units of this unique type. We’re waiting for the fall and will look at “normal” deals instead of this twisted sister.

#14 My Body My Choice on 06.22.21 at 2:16 pm

Never. Buy. A. Condo.

Every condo owner lives in fear of receiving the dreaded envelope from the condo corporation. It could be a 10% hike in condo fees. It could be a special assessment for almost any amount of money.

If the building is in need of major repairs (exoskeleton, windows on all units, leaks, structural), the building repairs could be in the tens of millions or even hundreds of millions of dollars depending on the size of the building.

Guess what? If you’re an owner, you’re sent a special assessment to pay for the repairs. How much? Could be $10k, $20k, $50k, the sky’s the limit. Due in 90 days or else. Else what? They put a lien on your title. Can’t sell without paying. What are your options? Apply for loan or larger mortgage from your bank. If refused, you must sell, usually at a huge loss because buyer wants a discounted price to reflect the special assessment.

On top of a special assessment, they could jack up your condo fees by almost any amount if they need to top up the reserve fund, as Garth mentioned.

You’re better off livin’ in a van down by the river than buying a condo.

Never. Buy. A. Condo.

#15 Earlybird on 06.22.21 at 2:36 pm

#3 Renter…now that is hilarious!!..Ill remember that next time I am on the Loo….
#14 We were looking for a small condo unit to purchase outright….but now the opportunistic cost has a big impact now. Terrified of expenses we dont control. So frustrating that there is not another alternative to Mc Mansion or shared ownership…other than renting. However being liquid and ditching your ikea furniture and hitting the reset button at will is quiet freeing…I like the dont buy a condo comments….thanks!

#16 TurnerNation on 06.22.21 at 2:38 pm

Kanada has been Balkanized. Our own Color Revolution. Red natch.
I’ve been pounding the table months that this New System (Well has anything gone back the way it was before March 2020? You tell me) is mostly over Control over our Travel/Movements.

– Fact. You no longer have the right to be healthy (you must prove it
– You no longer have the right to access your own land/property within Kanada. New papers are required

https://ca.news.yahoo.com/demand-p-e-pass-still-220229231.html
Since its launch, about 7,000 people have applied for a P.E.I. Pass. Prince Edward Island residents make up 35 per cent of those people.
Applicants for the pass must provide proof of residency and of vaccination. The single pass will work for multiple entries

————-
——-
Division: Well of course the goal is division. We must be kept in chaos as more of the New System is rolled out. (was any time wasted cancelling Canada Day? What’s next? )

https://www.themoscowtimes.com/2021/06/17/russias-unprecedented-mandatory-vaccination-push-divides-society-a74237
Russia’s Unprecedented Mandatory Vaccination Push Divides Society
Russian officials are desperate to get citizens vaccinated in a nation that distrusts vaccines.


— Yep the ‘Variant’! The prison doors close a little more each time. Gonna be a fun wintertime of Lockdown eh lads? But We will be so healthy. What health we will enjoy! I cannot wait.

https://www.rt.com/russia/527265-moscow-covid-test-mandatory-rule/
With infectious Delta strain on rise, Moscow to require proof of Covid-19 vaccination or negative test to visit bars & restaurants


— Predictively selling us on the rolling lockdowns – at least until 2022-23 if not 2025. Welcome to WW3.
Say I guess they don’t trust their own jabs?

. UK: WINTER IS COMING ‘Brace’ for hard winter as ‘significant Covid surge could spark new restrictions as flu strikes’, Whitty warns (thesun.co.uk)
. Covid: Minister doesn’t rule out winter lockdown after PHE expert says ‘we may have to’ reimpose measure
‘You can’t ever say mission accomplished’ on coronavirus says Robert Buckland (independent.co.uk)

#17 IHCTD9 on 06.22.21 at 2:44 pm

#8 CL on 06.22.21 at 1:35 pm
whether you own a house or condo the *fees*, another word for expenses….are the equivalent of owning a home. You still have to pay utilities, insurance, maintenance and repairs etc. You pay one way or another. There is no free lunch. The only real difference is that if you own a house you are on your own if you need a roof, hot water tank,furnace, windows…..it’s all relative.
——-

Not really. I can fix my own house if I want, to save $.

Do I spend 4-5k/yr, every year to maintain my property? Not a chance. There’s a lot more to deal with here than a 600sf box too.

With a condo, you get told what to pay, and you pay it or else.

#18 S.O on 06.22.21 at 2:45 pm

Look at what they were saying about bitcoin six months ago, “its going to one hundred thousand, ” look at it now. When everyone is telling you it can’t go down, be cautious.

#19 IHCTD9 on 06.22.21 at 2:49 pm

#6 Doug t on 06.22.21 at 1:32 pm
gas is up 10 cents here in Victoria – summer is going to be expensive for alot of things
—-

What’s it at?

#20 ogdoad on 06.22.21 at 2:58 pm

Imagine a condo complex with several hundred units in it, full of people working in their jammies all day, using the loo and bathing the pandemic puppy – LOL! I almost hurt something!

Keep your house kids. Stay close to your parents/ent/sig oth/home owner in the fam and see them through to the light…build and focus on community and zen will follow. Or so I’ve heard :)

Garth, honest question: What do you think of covered call ETF’s? Gimmicky? (BMO – ZWB (Low Man. Fees))A friend is weightily invested but receiving a good income.

Any insight?

Og

#21 Kfc is best on 06.22.21 at 3:00 pm

Kfc is still the best bang for buck when feeding a family of 5. Get your coupons online. And it’s no longer taboo. Remember how they were beaten and bludgeoned for many years because it was deemed unhealthy. Then we all forgot and now every cat and dog is opening a fried chicken biz. Everything travels in cycles. Never forget.

#22 Prince Polo on 06.22.21 at 3:05 pm

It bears repeating:

#13 Prince Polo on 01.08.21 at 2:57 pm
*AHEM*, I ran the monthly payment numbers for downtown ‘Sauga condos through the realtor.ca calculator (assuming 2% mortgage, 25yr amortization, 5% down, adding prop tax and condo fees):
1 bdrm @ $510K = $2750/mo
2 bdrm @ $635K = $3400/mo

No thanks! I’ll stick with being one of those “loser” renters who is not even fully paying his landlord’s mortgage………

If anybody is wondering – it’s $1650/mo for a 1 bdrm.

TL; DR = $1650 << $2750

#23 crowdedelevatorfartz on 06.22.21 at 3:09 pm

Gas is $1.61 in Vancouver but it did jump in Victoria yesterday.

Again I post the question.
Anyone seeing any bees in Vancouver?

The lavender and other flowering perennials are usually crawling with them this time of year.
This year.
Late Spring and now early Summer
Nothing.

#24 LSC on 06.22.21 at 3:48 pm

Question of opportunity for the Fed Gov. from yesterday’s post…..

As interest rates rise and mortgage payments become more weighted with interest amounts and longer amortizations, might this open the door for the Feds to allow owners to deduct the mortgage interest from their taxes?
They will spin this as the Gov is here to help relieve some of the burden of higher interest rates.
At the same time they will impose capital gains taxes on your principal residence.

I believe the Fed would love to be able to be able to do this.
Maybe I give them too much credit…

LSC

#25 westsider on 06.22.21 at 3:59 pm

The high rise (15 floors) across from us has been under wraps for 2 years. The assessment was $200k per unit. A nightmare!!!

#26 Pylot Project on 06.22.21 at 4:09 pm

#9 Billy Buoy on 06.22.21 at 1:54 pm

$10 plus for these garbage meals? I’ll eat weeds instead.

====

I go to McDs for breakfast 4X per year, after a quarterly lab test. (If I have to fast, I’m going to eat junk after. Take that karma). I just about choked on my processed cheese when I was charged $10.05 for two McMuffins and one hashbrowns. Malnutrition aside, that is pure insanity.

====

On another note, since the younger ones can’t seem to find cash for savings etc, do the Millennials or Gen Z know how to make a sandwich? I’m not kidding. My anecdotal evidence suggest they don’t. I have three in that age bracket on my Dept Team, and not once have they ever brought lunch to work. Uber or Skip delivery every… single… day. My wife too has a co-worker who not only buys a sandwich every day, she only eats the middle. When my wife asked her why she doesn’t make her own sandwich, she responded “I don’t buy bread”.

The irony for me is that they all have restaurant quality appliances and granite in their condo kitchens. I suppose the pizza box has to sit somewhere. The money they could save just by making their own meals astounds me.

#27 Doug t on 06.22.21 at 4:12 pm

#19

162.9 lmao

#28 TurnerNation on 06.22.21 at 4:16 pm

For the “When Covid is over” crowd…it won’t be.
Sure…no smiles allowed. We tax slaves represent a lifetime revenue stream.

.Covid boosters in the fall? As calls grow for third shots, here’s what you need to know (cnbc.com)

.Two-thirds of Canadians say governments shouldn’t lift all COVID-19 restrictions (ctv.ca)

.L.A. teachers union pact mandates masks and coronavirus tests for all this fall(latimes.com)

.China to Keep Covid-19 Border Restrictions for Another Year (wsj.com)

…………….
And here it is. Certainly a boost to revenue eh? Science I know.

NORWOOD, Mass.— Moderna Inc. is adding two new production lines at the rebuilt former Polaroid plant where it manufactures its Covid-19 vaccine, part of a push to prepare for making booster shots and the future of the pandemic.
https://www.wsj.com/articles/moderna-plans-to-expand-production-to-make-covid-19-vaccine-boosters-supply-more-countries-11624273200

….

Wall St. Journal Opinion piece. Sounds like…a prison system now? The Global State now controls your life, body, and children – mind and body.

https://archive.fo/uPo76
OPINION | COMMENTARY
Why Shutdowns and Masks Suit the Elite
Covid restrictions seem less onerous from the standpoint of ‘expressive individualism,’ which defines the self in terms of ‘its will and not its body.

#29 bdwy on 06.22.21 at 4:17 pm

#19 IHCTD9 on 06.22.21 at 2:49 pm
#6 Doug t on 06.22.21 at 1:32 pm
gas is up 10 cents here in Victoria – summer is going to be expensive for alot of things

……
1.69 and rising in van…
https://globalnews.ca/news/7970876/gas-prices-metro-vancouver-rising/

#30 bdwy on 06.22.21 at 4:23 pm

Not really. I can fix my own house if I want, to save $.

—————
to save $, or simply because you possess adequate manliness.

and save you do… just did a bathroom reno for 1k, 8k to have others do it. in a condo you pay the 8k plus, no choice.

#31 Irish Stew on 06.22.21 at 4:27 pm

Almost bought a new home last week.
I couldn’t bring myself to added debt and cash moving out of my accounts.

Sad I didn’t get it.
Happy I control my own destiny still financially.

#32 KLNR on 06.22.21 at 4:35 pm

@#10 RENTERS REJOICE on 06.22.21 at 2:05 pm
DON’T BE AHOME MOANER. LET THEM THINK THEY ARE RICH WHILE THEY GET STUCK WITH ALL THE BILLS. THIS IS WHEN THE MEEK INHERIT THE EARTH. THE DEBTS AND BILLS WILL EAT THE HOME MOANERS ALIVE WHILE THE RENTERS LAUGH ALL THE WAY TO THE BANK

OR THE HOMOANER COULD PASS IT ON TO YOU IN THE FORM OF A RENT INCREASE OR MAYBE RENOVICT YOU FOR A HIGHER PAYING TENANT.

#33 Shina Shajic on 06.22.21 at 4:48 pm

Look at the word Condo, con do. It is a con that does.

#34 Bee on 06.22.21 at 4:55 pm

#23 crowdedelevatorfartz on 06.22.21 at 3:09 pm

Anyone seeing any bees in Vancouver?

Haven’t looked. I live in Nanaimo. Lots by us. Our lav is abuzz. Relative to other years, no idea.

Unless someone has hives in Vancouver, should we really expect to see them on the odd bush that gets peed on several times a day? I wouldn’t want to land either. Lol.

#35 Ponzius Pilatus on 06.22.21 at 4:57 pm

#17 IHCTD9 on 06.22.21 at 2:44 pm
#8 CL on 06.22.21 at 1:35 pm
whether you own a house or condo the *fees*, another word for expenses….are the equivalent of owning a home. You still have to pay utilities, insurance, maintenance and repairs etc. You pay one way or another. There is no free lunch. The only real difference is that if you own a house you are on your own if you need a roof, hot water tank,furnace, windows…..it’s all relative.
——-

Not really. I can fix my own house if I want, to save $.

Do I spend 4-5k/yr, every year to maintain my property? Not a chance. There’s a lot more to deal with here than a 600sf box too.

With a condo, you get told what to pay, and you pay it or else.
—————-
I kinda have to agree with CL, to be fair.
If you re lucky and live in a well managed strata, he could be right.
We have a house in the vicinity of some large townhouse stratas and it’s a joy to walk around alongside them.
Mostly restricted units, well manicured lawns and flower beds and trees.
Certainly adds to the appeal of the whole neighbor hood.

#36 ogdoad on 06.22.21 at 5:01 pm

#31 Irish

Smartest train of thought I have read in the comments thus far :)

Og

#37 STR on 06.22.21 at 5:07 pm

Sell The Rip

#38 Happy Renter on 06.22.21 at 5:12 pm

After my divorce, I starting renting in Ottawa in 2011 for $950/month including parking (one bedroom apartment). Today, thanks to rent control, I’m paying $1120. Maintenance, etc. $0, and of course, no fees.

#39 Ponzius Pilatus on 06.22.21 at 5:16 pm

#21 Kfc is best on 06.22.21 at 3:00 pm
Kfc is still the best bang for buck when feeding a family of 5. Get your coupons online. And it’s no longer taboo. Remember how they were beaten and bludgeoned for many years because it was deemed unhealthy. Then we all forgot and now every cat and dog is opening a fried chicken biz. Everything travels in cycles. Never forget.
————
Totally agree.
The new comers like Mary Browns, Popeye and the Korean Fried chicken places don’t even come near it.
The Tuesday special is a great deal.
Overall, I eat very healthy. So, once a week I can splurge on a greasy, crispy, messy chicken.
The skin is the best part.
No, I don’t work for KFC.

#40 bdwy on 06.22.21 at 5:18 pm

23 crowdedelevatorfartz on 06.22.21 at 3:09 pm
Gas is $1.61 in Vancouver but it did jump in Victoria yesterday.

Again I post the question.
Anyone seeing any bees in Vancouver?

The lavender and other flowering perennials are usually crawling with them this time of year.
This year.
Late Spring and now early Summer
Nothing.
———————–
have not noticed many in the city, but the flowering salal had tons of bees a couple weeks ago out in howe sound. maybe priced out of a good hive location in the city …

there has been 3 or 4 reddit posts on huge swarms in the city recently.

#41 NSNG on 06.22.21 at 5:26 pm

If there is one thing that could scuttle a re-election bid for Trudeau it is high gas prices. That is a price that is in the consumer’s face every single day.

Not only that but it is a price that he can’t apologize for. It is where he wants it. He’s quite proud of the price and it is not like he is paying for his and his entourage’s gas in the lear jets.

I wouldn’t doubt gas companies are going to squeeze the prices under the truckers start screaming. Then the national argument will start loud and strong. And it is not like people can go south for cheap gas. The border is closed. T did that proudly too.

When you see long highway truck protests on the news the fun is about to begin.

#42 bdwy on 06.22.21 at 5:28 pm

#39 Ponzius Pilatus on 06.22.21 at 5:16 pm
#21 Kfc is best on 06.22.21 at 3:00 pm
Kfc is still the best bang for buck when feeding a family of 5. Get your coupons online. And it’s no longer taboo. Remember how they were beaten and bludgeoned for many years because it was deemed unhealthy. Then we all forgot and now every cat and dog is opening a fried chicken biz. Everything travels in cycles. Never forget.
————
Totally agree.
The new comers like Mary Browns, Popeye and the Korean Fried chicken places don’t even come near it.
The Tuesday special is a great deal.
Overall, I eat very healthy. So, once a week I can splurge on a greasy, crispy, messy chicken.
The skin is the best part.
No, I don’t work for KFC.
—————

maybe i’m too cheap, but i love the coupons and immediately got the app and poked around.
found a kfc coupon (-25% limited time) that apparently works with/ontop of other offers. 20pc and fries for 25 bux – i’m in!
Or 3 pc for 25 at the trendy new place on commercial dr.

also i’ll be enjoying a free whopper soon for loading bk app.

mcD app is fantastic too, wendys ok.

#43 crowdedelevatorfartz on 06.22.21 at 5:33 pm

@#34 Bee Bomb

” …should we really expect to see them on the odd bush that gets peed on several times a day? I wouldn’t want to land either….”

++++

Apparently you have the same type of neighbors that we have at work…

#44 Sara on 06.22.21 at 5:45 pm

#38 Happy Renter on 06.22.21 at 5:12 pm
After my divorce, I starting renting in Ottawa in 2011 for $950/month including parking (one bedroom apartment). Today, thanks to rent control, I’m paying $1120. Maintenance, etc. $0, and of course, no fees.
===================
After moving to Ottawa in 2012 due to job relocation, sold house in Brantford ontario for 320 (now worth 900K) and started renting a 3+1 bedroom bungalow in Ottawa for $1850. Today paying $1930 thanks to rent control. Of course that same house in Ottawa that cost $450K in 2012 and is now pushing a million, so kick myself for not buying back into housing market after our move as am now priced out.

#45 Andrewski on 06.22.21 at 5:46 pm

Family just sold their home in Norfolk County (Ontario). First offer came in 30% over asking on the day they listed. Slowdown may be coming soon, so they’re very happy to get it sold quickly.

#46 SoggyShorts on 06.22.21 at 5:47 pm

#41 NSNG on 06.22.21 at 5:26 pm
If there is one thing that could scuttle a re-election bid for Trudeau it is high gas prices. That is a price that is in the consumer’s face every single day.
********************
I’ve never understood people’s obsession with gas prices.

The average car consumes 9-13L/100km
The average KM driven is 13-18,000km

Let’s say you drive 15,000km and consume 10L/100 KM, that means you need 1,500L of gas per year.

So if gas goes up 20 cents that’s an increase of $25 per month, less than a buck a day.

Is it the macro effects that concern people? As in higher gas = higher shipping = higher cost of goods? It certainly doesn’t seem like it when people complain about the price “at the pump”

#47 Heather on 06.22.21 at 5:48 pm

I disagree that condo boards can increase fees at will. How would they justify it? There would have to be a darn good reason to do it. I live in a strata in BC (the interior). My fee is $237 a month. All of my utilities are paid by me. That $237 includes earthquake insurance. I do question that as it may be a risk that we in the interior don’t have.

#48 KLNR on 06.22.21 at 5:54 pm

@#23 crowdedelevatorfartz on 06.22.21 at 3:09 pm
Gas is $1.61 in Vancouver but it did jump in Victoria yesterday.

Again I post the question.
Anyone seeing any bees in Vancouver?

The lavender and other flowering perennials are usually crawling with them this time of year.
This year.
Late Spring and now early Summer
Nothing.

bet turnernation has a good answer for that

#49 KLNR on 06.22.21 at 5:58 pm

@#39 Ponzius Pilatus on 06.22.21 at 5:16 pm
#21 Kfc is best on 06.22.21 at 3:00 pm
Kfc is still the best bang for buck when feeding a family of 5. Get your coupons online. And it’s no longer taboo. Remember how they were beaten and bludgeoned for many years because it was deemed unhealthy. Then we all forgot and now every cat and dog is opening a fried chicken biz. Everything travels in cycles. Never forget.
————
Totally agree.
The new comers like Mary Browns, Popeye and the Korean Fried chicken places don’t even come near it.
The Tuesday special is a great deal.
Overall, I eat very healthy. So, once a week I can splurge on a greasy, crispy, messy chicken.
The skin is the best part.
No, I don’t work for KFC.

If you’re looking the cheapest KFC may be the place.
If you want quality/taste then Popeyes is where it’s at.
out here in ontario KFC is barely hanging on while Popeyes is popping up on every corner.

#50 NOSTRADAMUS on 06.22.21 at 6:01 pm

TITANIC !
A great number of recent speculators will shortly come to the realization they are trapped on the bridge of the Titanic along with their friendly Real Estate agent, Captain Smith. The warnings of possible icebergs, fell on your deaf ears. And why not, it has been smooth sailing for years with the wind at your back and (low interest rates) to move you along. Now on the horizon an iceberg called “LIQUIDITY” is fast approaching. Are you up to the most devastating withdrawal of liquidity in recent history? There is strong possibility that you and Captain Smith will be going down with the ship. Say hello to Davy Jones. With regard to the possibility of a future vacation on a cruise ship, do not despair, you can always apply for a job working as a deck hand. That’s all i have to say on that, for now.

#51 VladTor on 06.22.21 at 6:15 pm

Garth:
1. ….bathing the pandemic puppy.
2. …Pee hourly.

*************
Again, my thunderous applause turning into a standing ovation. FUN!!!!

Garth, personally for me I would be happy if yours explanation like today after Note to Kids:…. always was after you provide some numbers. It would be not hard for you to do addition calculation (which mean supporting explanation) with yours experience in finance but for reader it will sharply improve understanding. Not all of us can do RE or mortgage calculation fast.

#52 DON on 06.22.21 at 6:16 pm

https://money.usnews.com/investing/news/articles/2021-06-22/us-fast-food-chains-cut-discounts-push-pricy-meals-post-pandemic

With all the fast food talk.

#53 Do we have all the facts on 06.22.21 at 6:26 pm

Yesterday Garth voiced his opinion that monetary policies of the Bank of Canada could be implemented without influence from the Government of Canada.

On the surface that might appear to be the case today but I remember what transpired when the tight monetary policies implemented by the Bank of Canada in the late 1950’s irritated Prime Minister Diefenbaker and forced the resignation of Bank of Canada Governor James Coyne and an immediate loosening of monetary policy.

I would point to paragraphs 14 (1,2,3) of the Bank of Canada Act 1985 that stipulates that the Government of Canada, as shareholders of the Bank of Canada, have ultimate control over monetary policy in Canada.

The Bank of Canada Act requires regular meetings between the Minister of Finance and the Governor of the Bank of Canada and there is no doubt that the Minister of Finance assures that all policies introduced by the Bank of Canada support government objectives.

If the Bank of Canada strays too far from Government of Canada objectives the Government can, and probably will, initiate the necessary change in direction on behalf of the Canadian citizens they represent.

Shareholders always retain the ability to change the direction of a company where they hold 100% of the shares.

In 1964 the Porter Commission concluded that the Government of Canada, on behalf of Canadian citizens, has responsibility for setting monetary policy and the Bank of Canada has responsibility for implementing government policies on a day to day basis.

While the role of all Central banks changed considerably after the Basel Committee was created in 1974 current legislation in Canada has left ultimate control over the setting of monetary and fiscal policies with the Government of Canada.

Those who create a Crown corporation control what their creation can do.

Just admit you were wrong. Takes less time. – Garth

#54 Nonplused on 06.22.21 at 6:36 pm

Those maths are hard. Where would your average condo owner come up with $84,500? And how many years of rent is that? At $2,000 / month it would be 3.5.

Is a 10% correction possible in the next 3.5 years? I guess if prices can go up 30% in a year they can come off 30% in a year.

I don’t get the magnitude of increased water usage. Nobody is showering, so it’s got to be the toilet. Were people really flushing that much at work? But either way net-net the city should be about the same, just different toilets are flushing. I guess it does change who is paying for the water though.

#55 Pylot Project on 06.22.21 at 6:38 pm

#23 crowdedelevatorfartz on 06.22.21 at 3:09 pm

Again I post the question. Anyone seeing any bees in Vancouver?

===

Nope. Our lavender in Port Moody is growing gangbusters, but nary a bee to be found so far this year. On the flip side, we’ve never had so many birds in our area.

#56 CJohnC on 06.22.21 at 6:51 pm

Crowdie….any bees?

I’m in Ladner, very few bees this year. 1/2 dozen honey bees and a couple of bumblebees. That’s it. The swarms are gone

#57 Nonplused on 06.22.21 at 7:03 pm

In Calgary gasoline is about $1.40/liter but about $0.32 of that is tax.

In Vancouver the taxes are about $0.47/liter.

GST / HST is on top of that.

The carbon tax portion is set to rise from $40/ton currently to $170/ton in 2030. That is going to significantly increase the cost of everything from driving to heating your house to the cost of groceries.

#58 kommykim on 06.22.21 at 7:04 pm

#17 IHCTD9 on 06.22.21 at 2:44 pm
Not really. I can fix my own house if I want, to save $

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

Even if you don’t DIY, it seems that contractors seem to soak condo associations more than the little guy. Or maybe the people on the association are inept at bargaining.
It’s a few years back, but I had my roof redone on my 1200sqft rancher for around $5K. Around the same time, heard from several people who lived in similar sized town/row houses being charged $10-15K per unit for their share of the reroofing job.

#59 Bezengy on 06.22.21 at 7:08 pm

I have a really nice 100 acre waterfront property here in Hicksville. Don’t use it and rarely go there as wifey prefers the camp life. We’re in no hurry to sell as the value has been steadily rising, but if the positive housing sentiment were to change I have a feeling we’d want out quick, which is probably typical of a lot of other property owners. Once things turn negative, look out below. Now if I were smart I’d probably sell now, but, what if I’m wrong? Anyone know someone who regrets selling the farm?

#60 Bezengy on 06.22.21 at 7:10 pm

I watched the CEO of Home Equity Bank today on BNN (apologies once again) talk about reverse mortgages. Wasn’t allowed to discuss things like the interest rate they charge, but he did give his sales pitch about how seniors could unlock equity and give the money to the kids to get into the housing market. (No pressure Mom, but the DIL’s got that ticking biological time bomb thing that only you can fix by giving her that 200K down payment). The guy only smirked once during the interview which I thought was pretty good. I think it was when he said you cannot save money by selling your house and downsizing, a reverse mortgage is the only way to go. Criminal.

#61 crowdedelevatorfartz on 06.22.21 at 7:12 pm

@#55 Pylot

Yep.
I have tons of hummingbirds and a few butterflies but no bees….
Not good for the crops this year.

On a side note.
One of my workers lives next to a Reserve on the Island.
Yesterday’s Indigenous Day was capped off with….. Fireworks…..
I wonder if they got them from Victoria city clowncil for a bargain price.

#62 kommykim on 06.22.21 at 7:13 pm

RE: #46 SoggyShorts on 06.22.21 at 5:47 pm
So if gas goes up 20 cents that’s an increase of $25 per month, less than a buck a day.
Is it the macro effects that concern people? As in higher gas = higher shipping = higher cost of goods? It certainly doesn’t seem like it when people complain about the price “at the pump”

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

I think a lot of it comes from the fact that prices seem arbitrary. ie: When the price of gasoline goes up at the same time oil prices are rising we read in the media that it’s the oil price increases being passed on… But then later we’ll see gasoline prices stay the same or rise slightly when global oil prices have fallen sharply. Then the excuse is, “Oh it’s all the surplus in the supply chain, etc…”

#63 Wrk.dover on 06.22.21 at 7:14 pm

#23 crowdedelevatorfartz on 06.22.21 at 3:09 pm

Again I post the question.
Anyone seeing any bees in Vancouver?

Late Spring and now early Summer
Nothing.
______________________________________

Out here in SW NS the air is full of photo drones doing RE listing work! Different kind of pollination….

#64 crowdedelevatorfartz on 06.22.21 at 7:15 pm

@#52 DON

All the Fast Food talk started with comment #4.

#65 jess on 06.22.21 at 7:20 pm

…those lagging back channels and just look what he purchased with all that usa taxpayer monies

Turkish Businessman Arrested, Faces U.S. Extradition

A Turkish businessman at the center of an OCCRP investigation into Trump-era backchannel diplomacy has been arrested in Austria and now faces extradition to the United States, the Department of Justice announced on Monday

Sezgin Baran Korkmaz was arrested at the request of the U.S. for his alleged role in a scheme — along with Armenian-American organized criminal Levon Termendzhyan and members of a secretive Mormon sect — that defrauded the U.S. government of roughly US$500 in fraudulent biofuel tax credits. Korkmaz is alleged to have laundered over $133 million of the money through accounts in Turkey and Luxembourg.

Monday, June 21, 2021
Turkish Businessman Arrested in Austria on Charges that He Allegedly Laundered Over $133 Million in Fraud Proceeds

A Turkish businessman was arrested in Austria on June 19, at the request of the U.S. Department of Justice. This arrest followed a superseding indictment returned by a federal grand jury in Salt Lake City, Utah, on April 28, which was unsealed today. The superseding indictment charged Sezgin Baran Korkmaz with one count of conspiring to commit money laundering, 10 counts of wire fraud, and one count of obstruction of an official proceeding.

According to the superseding indictment, Korkmaz laundered over $133 million in fraud proceeds through bank accounts that he controlled in Turkey and Luxembourg. The proceeds allegedly related to a scheme by Jacob Kingston, Isaiah Kingston, and Levon Termendzhyan to defraud the U.S. Treasury by filing false claims for over $1 billion in refundable renewable fuel tax credits for the production and sale of biodiesel by their company, Washakie Renewable Energy LLC, in Plymouth, Utah.

https://www.occrp.org/en/daily/14696-turkish-businessman-arrested-faces-u-s-extradition

https://www.justice.gov/opa/pr/turkish-businessman-arrested-austria-charges-he-allegedly-laundered-over-133-million-fraud
=============

Taher al-Kayali, owner of the cargo ship Noka, convictions in Italy for smuggling stolen cars and yachts.
Kayali and others linked to the Noka registered shell companies in the U.K. and elsewhere to facilitate their operations.
The Noka shipment was allegedly destined for a smuggling gang in eastern Libya.
The web of connections shows how the booming trade in this little-known drug is being run from Latakia, a Syrian port under direct regime control.
The largest shipment of Captagon ever busted — in Italy in summer 2020 — and the largest busted in Romania also originated from Latakia.

https://www.occrp.org/en/investigations/greek-captagon-bust-leads-to-a-criminal-gang-and-the-port-at-the-heart-of-syrias-booming-new-drug-trade

#66 Ustabe on 06.22.21 at 7:20 pm

Fast food fried chicken is pressure fried. So like a pressure cooker but for oil.

When they get busy they crank the pressure up so the chicken is done faster. That is when you get the slippery skin issue, you bite and the whole flap of skin and coating comes away.

Moral of the story, try and pick up fast food fried chicken when they aren’t so busy.

Or search out Kenji Lopez-Alt’s recipe at Serious Eats.com and do it at home. Its a bit of a production so we do two or three birds at a time and freeze pieces individually.

Nothing like a bowl of new potato potato salad and a couple of chunks of cold friend chicken for a hot summer’s day lunch on the deck.

#67 Ustabe on 06.22.21 at 7:22 pm

cold friend chicken

That would be cold fried chicken…I don’t have any friends.

#68 Brunett43 on 06.22.21 at 7:24 pm

I should slip a copy of this to my neighbour. I bought my condo in the fall of 2019 for $399k. The couple next to me just moved in last week. The paid $725k….LMFAO! I have no mortgage. I hope they don’t. So they paid $326k more for the same condo in a span of 20 months. Poor suckers.

#69 Nonplused on 06.22.21 at 7:29 pm

https://www.zerohedge.com/political/california-plans-pay-all-unpaid-rent-racked-during-pandemic

I bet those who paid their rent are going to be fuming.

#70 Do we have all the facts on 06.22.21 at 7:33 pm

# 53

I didn’t write the Bank of Canada Act 1985 so stating that ultimate control over monetary and fiscal policies within Canada rests with the Government elected to represent the interests of Canadian citizens appears to be correct.

Legislation trumps opinions. I’ve moved on.

#71 Sara on 06.22.21 at 7:35 pm

The pandemic helped make Canada one of the world’s hottest real estate markets. With a portfolio of more than 100 houses, that meant a windfall for Brady McDonald.

“My net worth has obviously gone up a lot, just based on what’s happened this year, because the market’s gone berserk,” said McDonald, a former arborist who started acquiring single-family homes in the small city of Barrie, Ontario, in 2015, and now says he has a net worth “in the millions.”

“We have a housing crisis here,” he said from Barrie, where prices have gone up almost 40% in the last year. “The demand for housing is not going down. So there’s always opportunity.”

But in a country that faces one of the world’s most acute housing shortages, investors like McDonald are coming under increased scrutiny. Concern is growing that the professionals are crowding out first-time buyers and would be quick to sell if property values start to slide, which could threaten the economy.

Investors account for about a fifth of new mortgages in Canada — the same share that prompted a crackdown in the U.K., and roughly five times the rate in the U.S. — stoking debate over whether homes should be viewed as assets, or just places to live.

https://www.bloomberg.com/news/articles/2021-06-22/housing-market-gone-berserk-stirs-unease-over-investors-clout

#72 SoggyShorts on 06.22.21 at 7:42 pm

#47 Heather on 06.22.21 at 5:48 pm
I disagree that condo board
*********************
I don’t own a condo, but have you read all of the rules? Can the board make big decisions like new paint, new fence new fees to offset those, and “future” needs?
Or does every owner get a vote? Are fee increases tied to inflation? By what measure?
Just guesses.
I think if I owned I would be sure to be on that board making sure they didn’t hire cousin steve to do the fence at 2x market rates etc.

Man I love renting.

#73 Prince Polo on 06.22.21 at 7:50 pm

#67 Ustabe on 06.22.21 at 7:22 pm
cold friend chicken

That would be cold fried chicken…I don’t have any friends.

LOL! Fittingly, you’ve got at least one pathetic friend on this pathetic blog…how’s the mushroom business going so far this year?

#74 daveyboy on 06.22.21 at 8:10 pm

Walmart has the best southern fried chicken.

#75 Quintilian on 06.22.21 at 8:18 pm

” by Re/Max, probably the pumpiest of the house-humping real estate outfits in the land.”

Slimy marketing at work here. The pumpers are targeting those who are undecided whether to hold out for more, or to list now.

Get off the fence and call your RE/Max agent today!

#76 CL on 06.22.21 at 8:18 pm

#17 IHCTD9

Condo fees are not strictly maintenance as your comments indicate. They include most utilities (except power), insurance, maintenance, upgrades, repairs etc. Most large costs are planned for within condo fees with a *good* condo board. The condo board are owners also do not want to see condo fees go up…so they plan including a contingency fund within operating funds and the additional reserve fund. All from condo fees. Special assessments are more common with newer condos (and highrises) believe it or not because they are mostly garbage and especially ones with elevators, pools, any other extra amenity, post tension cabling (old technology) among others things. They cost money.

So you are saying you spend less than $400 a month *carrying* costs (just carrying costs including property tax, utilities, insurance etc…)….not including a mortgage/interest or maintenance….for a house? sorry, I call bull. Your taxes alone are probably over $200/ month. I’ve had houses, I am aware of the costs. Especially when a roof pops in to the picture or a water heater or furnace or a pipe leak…. I could go on.

When we run economics for a project, we include all costs over the life of a project including inflation. There is much more to real estate than just a buy and sell price. When I talk about this with some people and I actually run the numbers (not even including inflationary costs)and show them to them regarding their house, they are shocked that there is more to a house than a buy and sell price and it is not often people truly make a net profit on a house or a condo. In addition, whether we like it or not, when you buy you will be paying realtor commission the day you decide to sell. So, in reality, if someone puts down 5%, gets CMHC as most do for what….~4% AND you will eventually pay a realtor commission people are negative equity the day they move in whether they realize it or not. I am in Alberta and there are no transfer fees of any kind so I haven’t even included them in this. If someone lives in a jurisdiction with these fees then the negative equity from day 1 is even greater. I guess I am saying the same as Garth does but in a different way….there are costs that people do not include or think about.

Whether house or condo you pay one way or another. It has nothing to do with one is better than the other. That’s what I meant by it is all relative.

#77 Heather on 06.22.21 at 8:36 pm

#72

The board gets quotes from I think it’s three businesses.
Yes, every owner gets a vote. I don’t live in an apartment style strata. It’s a townhouse style with my own backyard all fenced. If I ever found out that anything shady was going on I would be speaking up. Everything appears to be fine but I understand your position on the topic.

#78 Ustabe on 06.22.21 at 8:39 pm

#73 Prince Polo on 06.22.21 at 7:50 pm

#67 Ustabe on 06.22.21 at 7:22 pm
cold friend chicken

That would be cold fried chicken…I don’t have any friends.

LOL! Fittingly, you’ve got at least one pathetic friend on this pathetic blog…how’s the mushroom business going so far this year

We just do the fall chanterelles, leave the others for others. The guys I’m hooked up with hold red sea urchin quota and that opens and closes all the time so they have to be available for any openings. Very lucrative I’m told although my guys never seem to have any money…or maybe they just prefer to use mine!

#79 WUL on 06.22.21 at 8:40 pm

I’ve been absent for a while here.

Hi Flop and Catskinner (IHCT9).

Lots of folks here asking about bee populations. Where you been for the last decade? Monsanto’s glysophate. The pollinators are hooped and we’ll all suffer serious negative environmental adverse impacts. Kiss goodbye to your spring blossoms.

Wake the hell up. Just another horrid harm to the environment. This Boomer is not responsible.

https://www.theguardian.com/environment/2018/sep/24/monsanto-weedkiller-harms-bees-research-finds

WUL

M65EnvironmentallyConsciousinFt.Mac

#80 heloguy on 06.22.21 at 8:41 pm

When the normally peaceful people of the maritimes decide they are fed up. The NS premier is throwing a hissy fit because the NB premier made a unilateral announcement about its borders without consulting him first.

https://www.cbc.ca/news/canada/nova-scotia/nova-scotia-new-brunswick-transcanada-highway-protest-1.6075950

https://www.cbc.ca/news/canada/nova-scotia/covid-19-modified-quarantine-isolation-new-brunswick-travel-1.6074984

#81 WUL on 06.22.21 at 8:55 pm

Or if the Guardian is repugnant to your scientific tastes with respect to bee populations, add Neonicotinoid Pesticides and Bee Health from our reliable Fed Government.

https://www.canada.ca/en/health-canada/services/consumer-product-safety/reports-publications/pesticides-pest-management/fact-sheets-other-resources/neonicotinoid-pesticides-bee-health.html

WUL

#82 BillyBob on 06.22.21 at 8:59 pm

#39 Ponzius Pilatus on 06.22.21 at 5:16 pm

Totally agree.
The new comers like Mary Browns, Popeye and the Korean Fried chicken places don’t even come near it.

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

Better let the Maritimers know about this “newcomer” Mary Browns lol. Man I remember getting that in St. John’s after a heavy night on George Street long ago.

“Mary Browns – best legs in town!”

And the Korean ones are amazing but more like a different food group from KFC. Chicken 649 for the Victoria folk not afraid of getting assaulted downtown.

#83 crowdedelevatorfartz on 06.22.21 at 9:13 pm

@#79 WUL
“Lots of folks here asking about bee populations. Where you been for the last decade? Monsanto’s glysophate. The pollinators are hooped and we’ll all suffer serious negative environmental adverse impacts. Kiss goodbye to your spring blossoms.”

++++

Uhhh.
Gee thanks WUL.

I wasnt asking WHY they are missing….
I was asking if it was just ME that was noticing a shortage of bees THIS YEAR……Not the past 10 years.

I’ll be sure to run for cover and stay inside my office in Burnaby the next time the Monsanto Crop dusters spray at tree top level.

#84 crowdedelevatorfartz on 06.22.21 at 9:16 pm

@#71 Sara

“With a portfolio of more than 100 houses, that meant a windfall for Brady McDonald.

“My net worth has obviously gone up a lot, just based on what’s happened this year, because the market’s gone berserk,” said McDonald, a former arborist who started acquiring single-family homes in the small city of Barrie, Ontario, in 2015, and now says he has a net worth “in the millions.”

++++

Now if only Millennials could see that it was just one greedy Boomer that bought all those houses and not the rest of us……..

#85 Ifimay on 06.22.21 at 9:41 pm

Why would you want to own a condo where you need permission to do with it as you’d like? No one should have that control over your home. Rent and buy stocks it’s much less stressful. Wait it out and get what will make you happy

#86 Sara on 06.22.21 at 9:43 pm

#84 CEF,

Who said he was a Boomer? I believe the article said he started buying houses in 2015 (not sure how he managed to acquire 100 so quickly though).

#87 DON on 06.22.21 at 9:47 pm

#64 crowdedelevatorfartz on 06.22.21 at 7:15 pm
@#52 DON

All the Fast Food talk started with comment #4.

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

whoops…I was in a rush. Should have known you had this one covered.

cheers!

#88 Ponzius Pilatus on 06.22.21 at 9:53 pm

#82 BillyBob on 06.22.21 at 8:59 pm
#39 Ponzius Pilatus on 06.22.21 at 5:16 pm

Totally agree.
The new comers like Mary Browns, Popeye and the Korean Fried chicken places don’t even come near it.

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

Better let the Maritimers know about this “newcomer” Mary Browns lol. Man I remember getting that in St. John’s after a heavy night on George Street long ago.
——————–
“Newcomer” in Vancouver.
We had the Big Mary for a few Mondays (when it’s 3.99), but we found the breast filet too dry and lacking taste.
Our taste is more Szechuan spicy.
As for the Korean fare, I was not impressed and too expensive. But the Asians in Richmond go crazy over it.
There was/is a Chicken chain in Germany/Austria called Wienerwald.
They had some mighty fine “backhendel”

#89 fishman on 06.22.21 at 10:03 pm

Bezengy: Ya, I’ve sold the farm, but I’ve bought a couple too. From experience I’ve learned that if your gonna sell a big ticket item have a plan for the cash. Even if the plan is too sit on a pile & wait for inspiration. Put on time limits for when you”ll make your move on your hopefully, inspired call.

#90 Slava on 06.22.21 at 10:05 pm

Somebody please help me reconcile the contradiction. Garth is saying “deflation is coming” and then turn around and says “high interest rate is coming”.

My understanding is that high interest rate is an acknowledgement of inflation. What am I missing? Honest question.

#91 paracho on 06.22.21 at 10:36 pm

Note to Kids: a lot of negative equity happened in my Woodbridge neighborhood in 1991. Many lost their houses . Downpayment back then was above 25%.
Houses were around $280,000 in this hood ten and are now 6 figures .
But many still had the banks foreclose then . I know of 7 in my hood alone and many more from that period .
There were many that had negative equity for years after that last correction with 25% downpayment.

#92 SoggyShorts on 06.22.21 at 10:40 pm

#76 CL on 06.22.21 at 8:18 pm
#17 IHCTD9

We figured it out one time and the $150K house my parents bought in ’92 cost an extra $150K over 25 years just for repairs and upgrades. It wasn’t new, maybe late 70s early 80s, and was in good shape at the time, but doing the
driveway,
fence,
2x roof,
2x furnace
2x bathroom overhaul,
total kitchen remodels,
paint inside & out (twice?),
windows,
flooring,
and maybe some others I’ve forgotten. I don’t think he counted appliances, but maybe.

The place is worth mid 400s now, but I don’t think there’s actually any profit in there.

#93 Thelma on 06.22.21 at 11:10 pm

I was on the board of my condo for 9 years. There was a group of us that never changed. Every year at the AGM we implored owners to join the board. No one did. There was nothing shady going on. Our management company would get quotes and the board would vote. (If you want a vote volunteer for the board!) In my years on the board we had to levy special assessments twice: one to get the reserve fund up and one to help fund a new roof. Every year at budget time we did our best to keep the condo fee from jumping to much. I owned a two bedroom unit and it never seemed fair that the 2bed owners had to pay 2/3’s more for items that had nothing to do with square footage…..like common area cleaning, snow removal and grass cutting or office supplies. Any why do I have to pay more for water than a 1 bed owner with one person living with the same 1 bath 1 kitchen. It makes no sense…. but its because of the unit factor franken number they said. Well its bad math I said. You can imagine how that went over with the majority 1 bed owners. They were down right hostile with the thought that maybe they should pay equally for things that have nothing to do with square footage.

I have heard some buildings had low condo fees to keep people happy but then assessed whenever a big ticket item was needed…..like we gotta redo all the balconies or replace windows.

Glad I’m out. Watched the value in YYC drop for 6years. But property tax kept going up and up. Every year I lodged a complaint with the city regarding their assessment value. I won every year but that gets to be a pain. Waited 3 years to sell. Took a loss but So glad to be a renter now in a building that has way more amenities than I had in the other building and a lease, so let the cost of water go up. I can flush with abandon! Met another lady in the underground parking who said she owned a condo before moving to this building and agreed it was so much cheaper and without all the discourse on the board. All I have to worry about now is getting replacement parts for my bikes because I am wearing out drive trains peddling the amazing pathway system we are so fortunate to have here in Cowtown.
DON”T BUY A CONDO!

#94 Cici on 06.22.21 at 11:35 pm

#26 Pylot Project

My wife too has a co-worker who not only buys a sandwich every day, she only eats the middle. When my wife asked her why she doesn’t make her own sandwich, she responded “I don’t buy bread”.
__________________________________________

LOL, that was hilarious. Thanks for the laugh. I think a vast and growing part of the population is missing the “common sense” gene.

#95 Gen Z on 06.23.21 at 12:14 am

Adam Vaughan has already told us, via Steven Paikin of TVO, that he will NOT let real estate prices collapse by even ONE PERCENT in Canada.

#96 Exodus 2020 on 06.23.21 at 1:18 am

Negative equity is usually temporary and property generally goes up in the long term. And homes are purchased with massive leverage, so negative equity could happen if investing in the margin even with a 60/40 portfolio.

The thing about real estate is you need to have a great property in a great location. This blog fear mongers and generalizes too much, there are many ways to minimize risk in real estate by not buying a crappy place in a bad location at a high price.

#97 paracho on 06.23.21 at 2:49 am

There was plenty of negative equity post 1990 when the die payments were 25 percent down . There will be even more today with 5 percent down .

#98 Sail Away on 06.23.21 at 3:02 am

Re: pollinator decline, greenhouse gases, etc

——–

Human-caused habitat loss is widely accepted as the overriding most damaging factor in species’ diversity decline.

While, of course, worldwide human population is at all-time highs and exploding exponentially.

Nature controls specie overpopulations by way of resource scarcity, diseases, blights, etc. In 2019 a hemmorhagic fever wiped out 99% of VI’s rabbits. Nobody cared. If anyone noticed, they applauded it as beneficial to nature.

THEN… fortuitously, a pathogen appears that can possibly slightly reduce human populations, thereby helping ease worldwide resource and environmental degradation. And what’s our response? None must die! Sheesh. Such self-importance! Such hubris! I cover my eye with my little hand.

#99 Sail Away on 06.23.21 at 3:33 am

Further deep thoughts… regarding the monetary system.

The other day for fun, I ran some compound interest scenarios with $100k invested at 5% for 100, 200, 300 and 400 years.

Result: after 400 years, that investment will be worth $29.9 Trillion. Impressive. And many people do exactly this sort of thing through family trusts for long-term protected assets, myself and T2 (or should we call him $2T?) included.

Clearly, if we all end up with $30T dollars, money loses oomph. This reinforces the unimportance of money since it can be expanded while disconnected from underlying assets.

What’s the alternative?

Who can recommend a good book exploring this? Hopefully a logical book that avoids overt social justice bleating and blaming (I just read ‘The Problem with Billionaires’- yow, what a waste of time. The concept of discussion that doesn’t involve denigration and blame escapes the author).

Thanks.

#100 Zoro on 06.23.21 at 6:24 am

Sweden PM loses confidence vote amid housing crisis, toppling government.

“Stefan Lofven, Sweden’s Social Democratic prime minister since 2014, lost a confidence vote in parliament on Monday amid a housing crisis and skyrocketing real estate prices”

https://www.washingtontimes.com/news/2021/jun/21/swedens-prime-minister-stefan-lofven-loses-confide/

#101 Bezengy on 06.23.21 at 6:59 am

#89 fishman on 06.22.21 at 10:03 pm
Bezengy: Ya, I’ve sold the farm, but I’ve bought a couple too. From experience I’ve learned that if your gonna sell a big ticket item have a plan for the cash. Even if the plan is too sit on a pile & wait for inspiration. Put on time limits for when you”ll make your move on your hopefully, inspired call.

—————–

But then I wouldn’t have accumulated all those tax losses to use in future years. sarc/off

Yes, great advice. I’ve sold several properties and when left with a chunk of cash the tendency for DIY investor guys like me is to go on a stock buying spree, what could go wrong? Same for anyone who commutes a pension, etc. After reading this blog for more than a few years hopefully some of the free advice has sunk in.

#102 Leebow on 06.23.21 at 7:57 am

#99 Sail Away

John Jones’s dollar.
https://www.gutenberg.org/files/26867/26867-h/26867-h.htm
Blew my mind at young age.

Other than that, Das Kapital.

#103 Dharma Bum on 06.23.21 at 8:00 am

If you can’t afford the house, don’t buy it.
If you can’t do the time, don’t do the crime.

Anyway, house “ownership” is overrated. Unless your mortgage is super small, or non-existent, you don’t really own anything. It’s only a false perception. An illusion.

I guess fake-owning a house makes some people feel better about themselves.

Mostly, they’re just stupid. They think they understand “wealth” through the concept of home ownership, but they can’t seem to wrap their heads around the idea of true wealth through the accumulation of liquid assets. Freedom is not their concern. Flexibility is not in the realm of their minds. These are primitive people who seek security and satisfaction and solace by hunkering down in their chosen cave.

Neanderthals.

#104 the Jaguar on 06.23.21 at 8:03 am

Spotted roaming the landscape: true grit, riding shotgun under the handle of Gregory Hicks.:::

… In an extraordinary news conference, Lick recorded his own vote of no confidence.

“The concept of ministerial responsibility has been absent,”
“It is particularly problematic when leaders turn a blind eye to the office’s recommendations and concerns in order to advance political interests and ensure their own self-preservation.”
“Why do we need another review to review the review? Let’s take action,” he said.
“Enough is enough. Let’s get on with it.”

Mercy and keep hope alive. ( yes, Sean…it belongs to the Jaguar )

#105 crowdedelevatorfartz on 06.23.21 at 8:08 am

@#100 Zoro
““Stefan Lofven, Sweden’s Social Democratic prime minister since 2014, lost a confidence vote in parliament on Monday amid a housing crisis and skyrocketing real estate prices”

++++

Eventually the idiots who vote for Trudeau will clue in.
Unfortunately, probably not this year.

#106 crowdedelevatorfartz on 06.23.21 at 8:14 am

@#86 Sara
“Who said he was a Boomer? I believe the article said he started buying houses in 2015 (not sure how he managed to acquire 100 so quickly though).”

+++

I assumed that he was a Boomer since they ruined the planet and the righteous Millennials would never allow profit and greed to cloud their minds when buying multiple real estate investments….

#107 crowdedelevatorfartz on 06.23.21 at 8:20 am

My my my.
And I thought World War III would start in the South China Sea

My mistake.

https://www.citynews1130.com/2021/06/23/russian-ship-fires-warning-shots-at-uk-warship-in-black-sea/

#108 crowdedelevatorfartz on 06.23.21 at 8:33 am

“Capitalism with Chinese Characteristics”

A euphemism for “shut up and follow orders”

https://www.reuters.com/article/us-hongkong-appledaily-timeline/the-rise-and-fall-of-hks-apple-daily-and-media-magnate-jimmy-lai-idUSKCN2DX0DY

As the citizens of Hong Kong are finding out.

One wonders when the “Capitalist miracle” in China will ironically fade to red ink as Mainland Chinese billionaire entrepreneurs are warned, muzzled or jailed.

Pretty hard to continue 8-10% growth when all the wheelers and dealers are in prison or scared.

But the hardliners in control dont really care when they have a 1.5 million man army to keep the peasants under control.

#109 Sail Away on 06.23.21 at 8:49 am

#102 Leebow on 06.23.21 at 7:57 am
#99 Sail Away

John Jones’s dollar.
https://www.gutenberg.org/files/26867/26867-h/26867-h.htm
Blew my mind at young age.

Other than that, Das Kapital

———

Haha, thx!

#110 Boomer Bob on 06.23.21 at 9:36 am

#47 Heather on 06.22.21 at 5:48 pm

I disagree that condo boards can increase fees at will. How would they justify it?

Justify it?

To WHOM?

I worked in condos and directly with boards of directors. Most boards were comprised of people who were unsophisticated thinkers (polite way of putting it) and some who were using their board positions for personal gain. Oh the stories I could tell!

They make the decisions, you live with the results. Case closed.

Just like any other “politician” does.

There is no justification required. Accountability is pretty much zero.

#111 crowdedelevatorfartz on 06.23.21 at 9:59 am

@#102 Lebow.
Re :John Jones Dollar

Ii recall reading tha years ago.
Those old Sci-fi shorts stories were great.
Amazing that was written in 1927.

https://www.gutenberg.org/files/26867/26867-h/26867-h.htm

#112 tbone on 06.23.21 at 10:08 am

I know a guy that used to own a condo . He used to attend the meetings and would challenge the costs of repairs as he could do math . The others were intimidated by the board and would not speak up . He sold . One other person could also do math and he sold too.
Corruption abound .
This building was new but had many defects .

#113 Sail Away on 06.23.21 at 10:17 am

#111 crowdedelevatorfartz on 06.23.21 at 9:59 am

Ii recall reading tha years ago.
Those old Sci-fi shorts stories were great.
Amazing that was written in 1927.

———

Yep. The value of the entire universe at $6 Trillion must have seemed phenomenal at the time.

#114 leebow on 06.23.21 at 10:58 am

#111 crowdedelevatorfartz

Even earlier – 1915! Y, pretty cool. Reading it 100 years later and knowing what did and didn’t happen in science, economics and politics, so many layers to it.

#115 westcdn on 06.23.21 at 11:22 am

Often the best advise I get is from women. Our motives may not align. When I get angered, I want to crush and destroy my opponents. The gal says maybe we should think about the consequences. There are lots of tough smart women and I listen – can’t promise I will behave.

IMO, we are going through a mini correction. There is worse to come but that is down the road. I like to say make hay when the sun is shining. It has been dry and hot in Calgary. I water my veggies daily while the melt off runs.

I have been looking hard at energy companies. I have no predictions but I like buying what people need. Most Pharmaceuticals have been dusters for me but I have picked winners. It has been the ratio of winners to losers that I can not accept – too many unkept promises. The only ones that seem to win are the insiders – pump and dump. I am getting smarter with experience.

I stand back now and say show me the money. I don’t put money into blue chips simply because they are expensive. I don’t have life insurance either and think debt reduction is not a bad idea. Who cares if I die penniless (exempting my family).

#116 NSNG on 06.23.21 at 12:36 pm

@ #112 Sail Away on 06.23.21 at 10:17 am

LOL!

The naïveté of the socialists on complete display.

It reads like an Austin Powers story:

“But gentlemen, it had not reached the point where it could be termed an unusually large accumulation of wealth. For larger accumulations existed upon the earth…

The account, though, now stood:

2421 500 years $2,520,000

Ooooh! 2.5 million dollars in 500 years. Shudder.

1. The funny thing is that the socialist just assumes you can gather all that wealth and the greedy government wouldn’t step in and grab it at some point.

The little people would just sit back and let one account buy up all the resources of the solar system. Silly.

2. The article also does not take into account inflation. That’s not a surprise since most people do not understand the insidious nature of the stealth tax that is named inflation.

#117 oh the irony on 06.23.21 at 12:44 pm

Sorry for the delay in replying but I am still LMAO at some guy who calls himself Soggy Shorts calling me a coward for not using my name lol

Taking things a little too seriously there Mr. Shorts

#118 Mike in Edm on 06.23.21 at 1:09 pm

Garth (or anyone else) – are you able to comment on all the US Mortgage related entities/stocks that have absolutely plummeted today? What happened?

https://finance.yahoo.com/losers

Hedgies just got whacked by a SCOTUS ruling. – Garth

#119 ezekiel on 06.23.21 at 1:13 pm

To a newly hatched salmon fry, finning in a languid stream, a cut bank pool will seem abyssal. Yet, such a pool will be far too shallow to Sail Away on.

#120 kommykim on 06.23.21 at 1:53 pm

RE: #107 crowdedelevatorfartz on 06.23.21 at 8:20 am
My my my.
And I thought World War III would start in the South China Sea

My mistake.

https://www.citynews1130.com/2021/06/23/russian-ship-fires-warning-shots-at-uk-warship-in-black-sea/

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

Strange story. Normally it would have been the UK complaining about the Russians harassing their vessels and the Soviets denying it…
“I am harassing you… ”
“No you’re not!”

Battle of the Wokes?

#121 kommykim on 06.23.21 at 2:05 pm

RE: #115 NSNG on 06.23.21 at 12:36 pm
@ #112 Sail Away on 06.23.21 at 10:17 am

2. The article also does not take into account inflation. That’s not a surprise since most people do not understand the insidious nature of the stealth tax that is named inflation

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

It’s an old SciFi short story written in 1927 before the author really imagined decoupling the currency from the gold standard and letting inflation run rampant. You’re right, but the idea/problem still holds with investment returns exceeding inflation.

A more modern version was the South Park Goobacks episode where time travelers come back in time to work, invest the money, and then collect their riches in the future. Both a commentary on immigration, markets, and compounding returns generating “free” wealth…

#122 NSNG on 06.23.21 at 2:48 pm

@ #121 kommykim on 06.23.21 at 2:05 pm

Yes….but….the socialist mindset still has yet to change.

BA! HA! HA!

And non-gold paper currencies that are inflated away are not anything new. History is literally littered with them. Even early American history had that problem which gave rise to the US Fed. The guy just extrapolated in an absurd way.

#123 Heather on 06.23.21 at 6:17 pm

# 110 – Boomer Bob

There is in our strata. There are only 34 units. The board must explain every cost and increase and they do. Our insurance company told us to count on a 10% increase to our insurance next year. Not all stratas function equally but I haven’t seen anything in our financial statements that is making me suspicious. Don’t lump all stratas in the same box. They are not all crooks.