Dropping the hammer

Elaine is a 28-year-old engineer. “I’m fortunate, risk-averse and hard working,” she says, “and I’m looking to make sure I don’t mess this up.” A down-to-earth, responsible, industrious Millennial. They exist.

Her problem: real estate speculation which doubled her money over the past four years. Maybe. Now E’s good fortune has impaled her on the horns of a dilemma. She wants off. This is her story..

“Been following your blog since 2015. Trying to navigate the ever-changing landscape of investment strategy and the housing sh*tshow that is the GTA and your guidance has been instrumental in making smart conservative decisions. Back in 2018, I bought a pre-construction condo in the Hammer (Hamilton, that is) because I had boyfriend in the area and had a job prospect there (parental pressure played a role too). I was terrified of the state of the market so I hedged with the cheapest smallest unit I could find. Fast forward 3 years and a pandemic later, no ties to Hamilton exist and I find myself in Toronto with a job and rental lifestyle that I love.

“As the Hamilton condo nears completion early 2022, I realize that making the commute from Hamilton to downtown Toronto more than 3 days/week will be less than ideal. However based on recent sales, the condo has went from 200k to 400k and it probably saved me from being completely left in the dust as the market took off. As a housing market self-proclaimed “bear”, I am naturally inclined to sell to lock in the gains. I’m also conscious of the fact that if I don’t live there for a period of time, I won’t qualify for the PRE. Call it greed but that 200k is the only thing keeping me with an ounce of hope in stabilizing my long-term housing situation and I’d like to reduce my tax liability as much as possible. Is there a way to elect this property as my PR even if I am renting elsewhere?

“As an alternative, I could rent it cash-flow positive, and use the rent to offset my Toronto rent. What happens then to the PRE, if this property is the only one that I own, and I rent it out? Post sale: where do I end up? collect 200k (ish), put it down on a 600k condo in Toronto and take on a huge 400k mortgage (massive liability)? No ties to Toronto other than family and current employment. Is it just better to keep renting in Toronto than to buy in at these prices? Paying 2k/month in rent will blow through the gain in about 8 years. Or: Suck it up, stay in the housing market as a hedge (future is unknown), and keep the condo, commute from Hamilton?”

The good news is that Elaine’s blind 24-year-old, pre-pandemic luck saw her buy into an undervalued market. Who know that two years later a virus would sweep the world and turn Hamilton (of all places) into a moister mecca. Or that mortgage rates would crash into the 1% range, goosing debt levels? Or that an air-borne communicable disease would have GTA urbanites fleeing for the great open skies and fresh breezes of… Hamilton? Oh well, it happened. Now what?

First, Elaine has no reason to go live in the Hammer when she works in T.O., loves where she lives and enjoys what a big city has to offer. Commuting is not possible. Not with sanity intact. And it sounds like the boyfriend ghosted.

The options available to her?

Sure, she can wait for completion, and rent the place out. After financing costs, condo fees, insurance and property tax, there might be a little left to put against Toronto rent. But every single dollar of net income is 100% taxable, added to her employment income and hoovered at her marginal rate. Besides, once the pandemic ends and Hamilton is again see as it was five years ago, the big capital gain could shrink, and still be taxable.

Yes, she can move in and dwell there long enough to sell and realize the profit tax-free. That would require at least two years of occupancy and a soulless eterity on the GO Train. Plus she has to live in Hamilton.

Sell now and crystallize the profit? The only way of doing this prior to the building being finished, then registered as a condo corp (which can take up to a year) is to assign ownership of the unit. It’s totally legit and increasingly common. Elaine sells the paper allowing her to buy the unit (if it is permitted in her contract) and collects her profit. Then she reports it to the CRA, and the adventure starts.

If she’s lucky, the $200,000 will be allowed as a capital gain. Half will be tax-free. Half added to her annual taxable income. So she’ll owe maybe 20% (depending on work wages). If she’s unlucky, the CRA will deem the entire $200,000 to be business income, fully taxable, likely kicking her into the 53% bracket for the year.

Why would this happen?

An assignment is a disposition of property and may not be allowed the special tax treatment reserved for capital gains – considered to flow from long-term investments, not flips, and primarily used to generate income. The CRA has a number of criteria to figure out how to tax profits emanating from a property sale like this.

For example, why was it bought? Did E ever intend living there when she worked in another city? She fails that test. Is she in the business of buying/selling real estate, or has done flips like this in the past? She passes that one. Is she selling now just to collect a profit, or because assuming ownership would be a burden? She’d likely pass that one, too.

As you might see, it’s subjective. There are no hard-and-fast CRA rules because the feds don’t want them. And lately Ottawa has been cracking down mightily on specuvestors, sweeping up some hapless folks like Elaine in the process. The odds are this will end up as a capital gains tax event. No, there’s no mitigation of that, save making a big RSP contribution in the same taxation year.

Finally, should this Mill take what’s left of the Hammer cash, buy a Toronto pad and finance a honking big mortgage?

Of course not. What’s the point? Ownership expenses will be far in excess of rental costs. The days of 30% annual virus-inspired property valuation leaps are over. Elaine may find a new BF, get married and change her life completely. How would leveraged real estate figure into that? She might get a stunning new engineering job in Vancouver or Calgary, and crave the flexibility and spontaneity that renting provides. Plus, buying in Toronto means double land transfer taxes and rising property tax, so with normal rates of appreciation and high selling commission a profit could be elusive. And meanwhile monthly cash flow would prevent her from investing.

A bird in the hand, Elaine. Pluck it.

About the picture: “This is Buddy in a contemplative moment at the cottage,” writes Diego. “A corgidor cross who came from a rescue in Ohio and brought to Canada. Hands down the best animal friend I ever had. I can’t even begin to describe his virtues. Thanksgiving weekend, October 11th, marked the 10th anniversary of his passing. I am still struggling to find it in me to get a new animal companion. I thought a picture on your blog might be a fitting tribute to Buddy. Thank you. I appreciate all you do. Take care and keep on keeping on.”

92 comments ↓

#1 Priva...See you later! on 11.30.21 at 3:30 pm

Ottawa, provinces must create agency to reform how health data is collected and used, report says

The federal and provincial governments must create a national agency to set standards for the collection and sharing of health data to respond more quickly to threats such as pandemics and to improve patient care, a new report says.

The report, from a federal advisory group to be released on Tuesday, says governments across the country also need to change privacy laws to allow health records and data to be more easily shared – with patients, medical providers and public-health officials. That would require a significant culture shift away from a system that focuses solely on keeping data secure and private, and toward one that ensures health records and data can be used and shared safely.

https://www.theglobeandmail.com/canada/article-ottawa-provinces-must-create-agency-to-reform-how-health-data-is/

#2 jimmy zhao on 11.30.21 at 3:36 pm

German euthanasia clinics refusing unvaccinated ‘customers’

https://www.spectator.co.uk/article/german-euthanasia-clinics-refusing-unvaccinated-customers?fbclid=IwAR37_DZ_BztJpZVSh1yLB8d-Bql2J—2J4vkcxZ9kQJmHsjSGTfB-mS07A

#3 Felix on 11.30.21 at 3:44 pm

DELETED

#4 TurnerNation on 11.30.21 at 3:45 pm

#1 Priva…See you later! on 11.30.21 at 3:30 pm

Every step is toward the global government “heath pass” aka social score. It’s why each and every human must be put into the Blockchain. That’s why the global rollout of QR codes. And is the end game. Total control globally.

————–

War on Small Business. Just another angle to the global CV plan.
(In Soviet Kanada They pretend to pay us and we pretend to work.)

https://www.blogto.com/eat_drink/2021/11/davs-hotspot-toronto-closed/
“A Toronto restaurant has announced their downtown location has closed due to issues hiring staff over the past several months.”After months of trying to find new staff, we’ve decided to close that location.”


— Control over Travel/Movement. The wartime (WW3) Fuel Rationing continues in BC. Just in time for Christmas travel?

.The National Post reports in its Tuesday, Nov. 30, edition that British Columbia has extended fuel rationing until Dec. 14 when the Trans Mountain pipeline is back on-line after a series of devastating storms in the southern part of the province (stockwatch.com)

— When First Responders begin quitting or fired, and rural stations go un-manned and your insurance company refuses to insure your location…ask for the Science in Kanada.

https://westernstandardonline.com/2021/11/selick-ahs-says-it-has-no-documents-for-its-policy-of-disregarding-natural-immunity/
“Lawyer submitted a Freedom of Information request on November 21 asking for “all records of the scientific evidence that AHS relied upon in the development of the policy.”
The answer came back within a few days: after conducting a comprehensive search, AHS could find no such records in its possession. “

#5 Triplenet on 11.30.21 at 3:52 pm

Well, here’s something we already knew.
The Feds had it wrong.

During a hearing before the Senate Banking Committee, Powell noted that when the Fed says “transitory,” they do not mean it as just referring to how long inflation will last, as the average person might expect. Still, he said it is time to stop using the word.

After consulting their numerous ‘word books’ and economic theory – transitory does not belong in the lexicon. Never did.
So for our benefit- they will re-define it’s meaning.
This will be interesting.
Will the Tiff agree?
Or will the PMO staff punt him?

#6 Prince Polo on 11.30.21 at 3:56 pm

First+ world problems as described above, put a huge smile on this “loser” renter’s face. There’s also my personal fave First+ World issue of a stuff’d TFSA & RRSP and having to make CRA installment payments, year after year! You can do it too!

Go Elaine Go!!!!

#7 Dolce Vita on 11.30.21 at 4:02 pm

Ya, ya mild little “Omniplex” + Mr. Taper earlier than expected Powell =

+600 pt Dow drop today.

Omicron the bigger culprit.

Moderna & BionTech (big mouth CEOs) both say current vaxes not as effective against Omicron. BionTech still sticking with their vax protects against severe disease (guarded confidence) & Moderna (material drop in protection).

They’re studying it so they ought to know something about the damn thing.

https://www.reuters.com/business/healthcare-pharmaceuticals/biontech-ceo-says-current-vaccine-likely-protect-against-severe-covid-omicron-2021-11-30/

https://www.reuters.com/business/healthcare-pharmaceuticals/moderna-ceo-says-vaccines-likely-less-effective-against-omicron-ft-2021-11-30/

———————

Oh but Omicrons mild S. Africa says (S. Africa = Spain, lie thru their teeth for a tourist dollar and both have cheap beer in common so go figure).

My hedge is ETFs that also profit from covered options. Offsets price losses, so far, that’s worked well.

#8 ogdoad on 11.30.21 at 4:13 pm

Jeesh! How many engineers are there in Canada? I guess the real question is how many of them are doing something worthwhile instead of building, designing and managing the production of CRAP? Oh, and paying good taxes. Checked your carbon footprint lately? Prob. taken’ care of on next tab of the ‘budget’ spreadsheet. Oh, and let’s not talk about emotions..deeeep down. Doesn’t happen. But calculating your way out of a pub-crawl? Covered.

Love engies…hate their parents.

Og

#9 HOUSE PARTY on 11.30.21 at 4:17 pm

People are pulling out of cash and out of risky assets and pumping it into housing because they think it is safer.

Housing and debt growth’s other side of the coin is no confidence in Canadian dollar holding value for now, and no concern that debt will be allowed to fail.

#10 crowdedelevatorfartz on 11.30.21 at 4:22 pm

It sucks, but if she flogs it now while the Market still has a heart beat…. taxes ( after maxing out unused RRSP room) may be the least of her worries …..
Dump it and pay taxes oweing…
Just be glad the ex-bf isn’t sniffing around for a piece of the profit.
Taxes at her young age…..C’est la vie.

#11 Nonplused on 11.30.21 at 4:22 pm

Selling seems like the best option to me for Elaine. It is good to minimize your taxes as allowed under the law, but it is a mistake to eschew good business decisions based solely on avoiding paying taxes, especially if those business decisions remain profitable. Taxes on business profits whether income or capital gains are always taxable and unavoidable.

So in this case, just using the numbers Garth threw around and assuming a capital gains treatment is allowed and the 20% applies to the amount included, she’d pay $20,000 on a $200,000 gain. Tax rates don’t get much better than that. Pay it.

After that decision is made, she can decide how much of the remaining she wants to put into RRSP’s to minimize employment income. It doesn’t have to be done all at once, it can be done over a few years with an eye to knocking down the top tax bracket. This will leave her with a good nest egg that can follow her around no matter where she ends up in the future. But the two decisions (selling, RRSP contributions) do not have to be made together and conjugating them only makes things more complicated than they need to be without adding any better process to either decision. Sell now, decide on RRSP’s later.

There is probably enough money there to also turn herself into a unicorn; a sub-30 y.o. with a university education and no student debt!

All in all there doesn’t seem to be any downside in selling, and little to be gained by holding the property.

#12 Smartalox on 11.30.21 at 4:27 pm

If Elaine’s been working for a few years, earning an engineer’s salary and living in the city of Toronto, she probably has a fair amount of unused TFSA and RRSP contribution room.

Take the $200k, and break off $50k for TFSA contribution (should have been accruing room since she turned 18) and break off $50k more into an RRSP – to offset the tax bill.

Then, at the turn of the year, max out those contributions again.

What you have there is not only a nest egg, and a windfall, but what’s also known as F-U money, a cushion to fall back on in case of job loss, bad relationship, etc. that forces you to move out or move on, at short notice.

#13 Jessica on 11.30.21 at 4:40 pm

Don’t forget GST. That’s an expensive mistake.

#14 DON on 11.30.21 at 4:44 pm

Apparently the Fed is no longer using ‘transitory’ to describe inflation now it is persistent inflation also referred to as ‘Suppository’ inflation for mainstreet.

#15 Do we have all the facts on 11.30.21 at 4:48 pm

Sounds like Elaine won’t be able to complete her purchase of the condo unit until 2022 so I assume she has locked in her mortgage rate. If she decides to assign her unit for a negotiated price in 2021 the interest rate that might be available to a new buyer and the projected closing costs in the future will influence the value of the assignment.

How will the difference between the purchase price negotiated in 2018 and the net value of an assignment in 2021 be determined. Surely there would be some kind of discount between the estimated market value today and possible market value at the time a new buyer would be able to assume clear title.

It sounds like she is expecting to realize net gain of $200,000. Is that expected gain a discounted value of an assignment or is it a hypothetical estimate based on the difference between her contracted price and current market values for similar units.

Just curious!

#16 Common Sense on 11.30.21 at 4:48 pm

E made $200k doing virtually nothing… Lucky E! Wish we were all so fortunate, but I guess that’s the basis of the current FOMO and all the speculating that’s happening now. Take the cash and run! Invest in the great reopening.

#17 Kirk on 11.30.21 at 4:55 pm

Garth, I’d love to hear what cities/towns/general areas you love.

Like a Turner “Best Places to Live in Canada” post.

Come on, dooooo it.

#18 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 11.30.21 at 4:56 pm

“No ties to Toronto….”

WOW!

Elaine, you are so lucky!

Get out of the Torontoilet for good, and have a life!

Go somewhere else where sports teams win championships regularly.

You are blessed :)

#19 RG on 11.30.21 at 4:58 pm

Elaine is worried about paying taxes on a $200k winfall?

PURE GREED.

Sell the damn place, take your FREE money, and count your blessings lady! Sheesh.

#20 cramar on 11.30.21 at 4:58 pm

If E can sell it now, when the Cap gain is 50%, this would be ideal. Who knows what the new budget will bring come 2022.

#21 Bob in Hamilton on 11.30.21 at 4:59 pm

‘Plus she has to live in Hamilton.’

Yeah…that is the problem/issue….know it well!

#22 Don Guillermo on 11.30.21 at 5:04 pm

#75 Ponzius Pilatus on 11.30.21 at 1:57 pm

Just hope they don’t start kidnapping rich people
**********************************
You should be fine.

#23 TurnerNation on 11.30.21 at 5:27 pm

#57 Good life in Fascist italy on 11.30.21 at 10:51 am

How can this be? Why, our own DOLCE tells us what a paradise is Italy. And with their Health Zones and Health Passes I can only imagine the superb level of health everyone enjoys?

————-
World wrap up. Almost back to normalcy guys! Smiles are banned in the New System Comrade.

.Face masks to return in Denmark from Monday (thelocal.dk)

-USA: But the hospital capacity guys.

.Some Hospitals Prepare to Lose Staff Over Covid-19 Vaccination Mandate – Up to 30% of hospital workers aren’t vaccinated ahead of a Jan. 4 federal deadline (wsj.com)

-Greece. ‘WE locked down to save the elderly people’! Now fine them into oblivian. They can live on the streets along with the fired health care HEROS. Life in the New System.

https://amp.rte.ie/amp/1263963/
Greece will make Covid-19 vaccinations mandatory for people aged 60 and over, as the country grapples with a new surge in coronavirus cases.
Authorities said they would impose a €100 fine on every individual over the age of 60 who was not vaccinated.

.Austria: Compulsory vaccination: Who refuses, pays up to 7200 € (krone.at)

– New Zealand, this was just rushed through. How healthy they will be in their Health Districts.

.legislation.govt.nz (h) require people to remain in the health district or the place in which they are isolated or quarantined until they have been medically examined and found to be free from infectious disease, and until they have undergone such preventive treatment as he may in any such case prescribe:

#24 Ponzius Pilatus on 11.30.21 at 5:28 pm

Elaine is a 28-year-old engineer. “I’m fortunate, risk-averse and hard working,” she says, “and I’m looking to make sure I don’t mess this up.” A down-to-earth, responsible, industrious Millennial. They exist.
—————-
So young, and already an Engineer.
Please don’t become a Sailo.

#25 sean on 11.30.21 at 5:36 pm

Alternate scenario: the developer contemplates Elaine’s “windfall gain” and decides to grab it for themself by not honouring her original purchase price.

There have been a couple of cases of this in the news recently, with the developer claiming inflation, COVID, etc. as the reason (cf. the real reason, greed/opportunity).

Hopefully Elaine’s lawyer was smart enough to forestall this possibility in her purchase agreement.

#26 Ponzius Pilatus on 11.30.21 at 5:37 pm

Another High School shooting in the USA.
Another kid who just walked in with a high powered rifle.
I can smell another self defense case, making defense lawyers rich.
And the kid’s a right wing hero.
I was so scared, they tried to take my gun away.
Tears on cue.
DG, what’s your take on this?

#27 Sail Away on 11.30.21 at 5:41 pm

#24 Ponzius Pilatus on 11.30.21 at 5:28 pm

So young, and already an Engineer.
Please don’t become a Sailo.

——-

If you do follow in my footsteps, be careful telling Ponzie, because he’ll challenge you to a fight over a blog discussion.

Crazy violent Austrian. And at least two of those descriptors are redundant.

#28 Penny Henny on 11.30.21 at 5:52 pm

poor Elaine. Probably put 20 grand down and now has to worry about paying taxes on 200 grand.

#29 dave on 11.30.21 at 5:55 pm

Looking at YTD lumber price….you would be tempted to think “inflation” around the month of May…you can see what happened after that…thus the FED conundrum…

https://www.nasdaq.com/market-activity/commodities/lbs

#30 Ponzius Pilatus on 11.30.21 at 5:59 pm

And it keeps on raining  in the The Lower Mainland.
Petty the farmers and the animals.
Early estimates are about 9 Billion to fix the mess.
Once it’s over, it probably will be more.
BC’s budget is about 70 billion.
So goodbye Massey Tunnel replacement, or new bridge.
And other needed infrastructure projects.
Increase in taxes, a certainty.
Lesson: Don’t build in flood plains.
Mother nature will always prevail.
So, now go ahead and blame Horgan and the NDP for not preparing for this.

#31 Garth's Son Drake on 11.30.21 at 6:04 pm

As I pointed out yesterday, the markets are facing serious issues with this new mutant.

Sell now ask questions later.

I love how US and Canada media came out and said no need to modify anything we are doing when very little is known about this insane mutant.

Pretty sure that was not the message coming out at the emergency G7 meeting.

But regular people will be the last to know, which is why sell now ask questions later will work for the time being.

#32 Dr V on 11.30.21 at 6:09 pm

For my buddy Ponzie

https://www.goldstreamgazette.com/news/vancouver-island-civic-leaders-see-rail-as-a-solution-to-malahat-woes/

#33 SW on 11.30.21 at 6:16 pm

#8 ogdoad on 11.30.21 at 4:13 pm
“Jeesh! How many engineers are there in Canada? I guess the real question is how many of them are doing something worthwhile instead of building, designing and managing the production of CRAP?”

Well, sanitation engineers are essential to a civilized life (that is, living in a city). In my opinion.

#34 mark on 11.30.21 at 6:40 pm

Mr market says down she goes, omicron…..

#35 mark on 11.30.21 at 6:41 pm

““As an alternative, I could rent it cash-flow positive, and use the rent to offset my Toronto rent. What happens then to the PRE, if this property is the only one that I own, and I rent it out?”
for an engineer she sure asks silly questions. a google link to the definition of “principal residence” may have been more helpful.

#36 Off with ye, Observer! on 11.30.21 at 6:42 pm

#73 Observer on 11.30.21 at 1:05 pm
#70 zxcvbnm on 11.30.21 at 12:34 pm
All this talk of speeding up tapering and raising rates sooner than anticipated. Yet my pref ETF keeps dumping.

Prefs suck. Always have, always will.

_____________________________________

How dare you criticize preferred shares! You know full well that this is the mantra on this site. We’re not interested in hearing the truth. We’re here for the dialogue,the dog pics and the handholding.

Now buzz off!

#37 crowdedelevatorfartz on 11.30.21 at 7:03 pm

@#30 Ponzies Petty Pity Party Predictions.
“Lesson: Don’t build in flood plains.
Mother nature will always prevail.”

+++++

Is that why you live in Tsunami Central?
The sea level diked suburbs South of the Fraser?

#38 Elaine on 11.30.21 at 7:08 pm

I feel the need to clarify: I ghosted him.

Thanks Garth!

#39 crowdedelevatorfartz on 11.30.21 at 7:10 pm

@#26 Ponzies Perturbing Preaching
I can smell another self defense case, making defense lawyers rich.”

+++

Try not to be a schmuck at least once a day.

#40 under the radar on 11.30.21 at 7:10 pm

live in it for a while and go for the PRE . if after a reasonable length of time you cannot handle the commute , then sell it. Personally , if its cash flow positive as a rental why sell it?

#41 twofatcats on 11.30.21 at 7:14 pm

Nov 30 Today’s flipped ‘principal residences’

https://housesigma.com/web/en/house/XeEn7X6ROPqYrPo8/26-ISABEL-Street-Port-Colborne-40189848-40189848-X5440115

https://housesigma.com/web/en/house/9w8o3m54rNk3GKjm/13-DOVER-Court-Welland-30826515
https://www.zolo.ca/welland-real-estate/13-dover-court#sold-history

https://www.zolo.ca/fort-erie-real-estate/616-lakeside-road#sold-history

#42 Bob Dog on 11.30.21 at 7:32 pm

Who is the halfwit that sold a $400K condo for $200K?

What a loser. Must be Canadian born and raised.

#43 DON on 11.30.21 at 8:00 pm

Elaine.

I’d get out and take your winnings. A good time to be mobile with cash in your pocket. New adventures ahead for you. Breaking up sucks but moving on brings more opportunity and excitment.

#44 Sail Away on 11.30.21 at 8:06 pm

Hmmm… as an immigrant to Canada, I took an oath to the Queen of England.

If Canada pulls a Barbados, am I still obligated to support the old bird?

#45 Ray Skunk on 11.30.21 at 8:11 pm

A hardworking, (apparently) single, 28yo engineer sitting on $200k?

Hi Elaine, Ray here *flutters eyebrows*.
Can I buy you a kombucha?

#46 Shawn Allen on 11.30.21 at 8:19 pm

Oat to the Queen

#44 Sail Away on 11.30.21 at 8:06 pm
Hmmm… as an immigrant to Canada, I took an oath to the Queen of England.

If Canada pulls a Barbados, am I still obligated to support the old bird?

********************************
Yes, of course. And the honorable thing for you to do will be to leave this country if it “pulls a Barbados”.

#47 Shawn Allen on 11.30.21 at 8:20 pm

Actually, the Oath was to her in her capacity as Queen of Canada, I believe.

#48 crowdedelevatorfartz on 11.30.21 at 8:38 pm

@#44 Sailing into the Sunset
“If Canada pulls a Barbados, am I still obligated to support the old bird?”

+++

If you mean “Paying Taxes” is the Obligation to support…

Yes.
Sadly the Taxes paid will shift from the “old bird” ( the Crown) to the “young Turkey” ( Repulsive Republic) Trudeau.

But look on the bright side.
Canada would no longer be a Confederation.
Republics such as France and the US have rendered “separation” of portions of the Republic ….. illegal.
Hence Quebec and “First Nations” threats to leave would be…… moot.

#49 Ponzius Pilatus on 11.30.21 at 8:45 pm

#46 Shawn Allen on 11.30.21 at 8:19 pm
Oat to the Queen

#44 Sail Away on 11.30.21 at 8:06 pm
Hmmm… as an immigrant to Canada, I took an oath to the Queen of England.

If Canada pulls a Barbados, am I still obligated to support the old bird?

********************************
Yes, of course. And the honorable thing for you to do will be to leave this country if it “pulls a Barbados”.
——————–
The words “honorable” and Sailo are incomparable.
But if he should take the “honorable” step, and decide to leave Canada, I’ll be “honored” to escort him to the border.
And make sure he takes all his firearms with him.

#50 FriedEggs on 11.30.21 at 8:50 pm

Hamilton – Red Hill Valley Inquiry, Chedoke Sewer Gate Inquiry, Tim Horton’s Stadium debacle, Mafia wars, 2016 – 1st in Canada for hate crimes and the best place to raise a family.

She sounds like Locke Street and Herkimer lady…

#51 Robert Ash on 11.30.21 at 8:51 pm

If BC had honored the previous TMPL, agreement, then there would have been about 3 Billion available for the Dykes, which actually would have been a better investment, and with 20/20 Hindsight, better for Canada. As I understand it, the Clarke Gov. negotiated a trough put of 1.0 B CAD per year… Interesting on how decisions, can impact, easy to say in retrospect, but one, has to be a little concerned if we are making the best decisions.

#52 Observer on 11.30.21 at 8:54 pm

#36 Off with ye, Observer! on 11.30.21 at 6:42 pm
#73 Observer on 11.30.21 at 1:05 pm
#70 zxcvbnm on 11.30.21 at 12:34 pm
All this talk of speeding up tapering and raising rates sooner than anticipated. Yet my pref ETF keeps dumping.

Prefs suck. Always have, always will.

_____________________________________

How dare you criticize preferred shares! You know full well that this is the mantra on this site. We’re not interested in hearing the truth. We’re here for the dialogue,the dog pics and the handholding.

Now buzz off!

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

You are quoting the comment made by zxcvbnm, not myself. I agree with holding a preferred ETF (my portfolio is around 18% DXP).

#53 Nonplused on 11.30.21 at 9:00 pm

#24 Ponzius Pilatus on 11.30.21 at 5:28 pm
Elaine is a 28-year-old engineer. “I’m fortunate, risk-averse and hard working,” she says, “and I’m looking to make sure I don’t mess this up.” A down-to-earth, responsible, industrious Millennial. They exist.
—————-
So young, and already an Engineer.
Please don’t become a Sailo.

———————————

“Young”? All depends if she wants kids I suppose. Not that I am for or against that, kids aren’t for everyone.

#54 crowdedelevatorfartz on 11.30.21 at 9:23 pm

Will the Fraser Valley break all previous rainfall records?
Only Faron and inquiring minds will know.

Previous rainfall record 520mm in Nov 2006
Possible rainfall in Nov 2021 …. 600+mm ?
23.5 inches of rain….in one month.
More to come in Dec. !

#55 Barb on 11.30.21 at 9:32 pm

Buddy was such a handsome buddy, Diego!
And happy because you two found each other.

I can’t blame you for the 10 years…I can’t do it either after six. The memories stay strong luckily.

#56 mark on 11.30.21 at 9:42 pm

with ye, Observer! on 11.30.21 at 6:42 pm
#73 Observer on 11.30.21 at 1:05 pm
#70 zxcvbnm on 11.30.21 at 12:34 pm
All this talk of speeding up tapering and raising rates sooner than anticipated. Yet my pref ETF keeps dumping.

Prefs suck. Always have, always will.

_____________________________________

How dare you criticize preferred shares! You know full well that this is the mantra on this site. We’re not interested in hearing the truth. We’re here for the dialogue,the dog pics and the handholding.

Now buzz off!
†************************************************

I agree, numerous white papers by PCL capital(canadian couch potato) author, yes prefs are dogs for suckers.

#57 45north on 11.30.21 at 9:47 pm

nonplused So in this case, just using the numbers Garth threw around and assuming a capital gains treatment is allowed and the 20% applies to the amount included, she’d pay $20,000 on a $200,000 gain. Tax rates don’t get much better than that. Pay it.

yep

#58 Snowball on 11.30.21 at 9:56 pm

Omicron is fascinating already. Like a new episode of a show you like.

I’ve made it a point to read a few things, see a few videos, look at data that is available so far.

What I find fascinating is the conflicting and confusing information. But hey, it’s Covid, clearly the C stands for CONFUSE. Con…Fuse…what a language English is!

Anyhow, Moderna CEO says Omicron will likely defeat the vax. Pfizer CEO is like “it will be all good!”

https://www.theglobeandmail.com/world/article-moderna-ceo-stephane-bancel-warns-covid-19-shots-less-effective/

Meanwhile health officials are quite convinced that vaccinated will be protected. Get vaccinated, get boosted, get jabbed.

Some reports even claim this that data is in hand suggesting that vaccinated are protected from Omicron (whatever the vaccine), but…and this I found funny…there is no data on how the unvaccinated do against Omicron.

I know, I know, you’re saying to yourself, Snowball, what’s is funny about that? Well you see, Omicron came from South Africa, right? Where it is getting clicks like only a new Drake video drop can. South Africa, Nov 23rd it reported 18,586 cases! These are Drake effect numbers. And in South Africa the vaccination rate is under 25%, meaning 3 unvaccinated for every vaccinated human. Funny, quite in fact to be honest, that there would be vaccinated data but not unvaccinated data, don’t you think? You’d figure that with such poor vax rate the majority of the data would be unvaccinated data.

Always something with this thing. C in Covid certainly does not stand for clarity.

#59 Calguy on 11.30.21 at 10:02 pm

What the heck is going on?! Is it March 2020 again? People need to have common sense. Looking at some housing markets, I guess we know the answer to this. The head South African doctor has said symptoms are mild. Then the government today announces this:
https://www.cbc.ca/news/politics/trudeau-omicron-more-to-do-1.6267817 He says travellers vaccinated or not?!! Geesh I thought you had to be vaccinated to get in?

If that’s not troubling then this:
https://www.cbc.ca/news/canada/edmonton/falsified-covid19-documents-cbsa-1.6266686

They told us to get vaccinated so we can get back to normal. Will that happen soon with fraud by people, and countries with low vaccination rates? They have not even studied impacts of vaccines, hospitalization and deaths. Knee jerk reactions by politicians. The impact on mental health will be more pressing as this goes on.

Let us live! We must learn to live with this. Wear a mask indoors etc, wash your hands, and avoid social gatherings unless vaccinated. There will be no economic recovery unless things keep going as “normal” the last couple of months. We can’t afford another Trudeau pandemic relief package!

#60 Sail Away on 11.30.21 at 11:02 pm

Caution: wholesome content

https://twitter.com/i/status/1465670291841945608

#61 Faron on 11.30.21 at 11:27 pm

#54 crowdedelevatorfartz on 11.30.21 at 9:23 pm

Nov. ain’t over yet. If your or Ponzi’s or anyone else’s head is above water, I’ll let you know when I know.

Reliable stations on the west coast of Van. Isle. are pushing 1000mm, those with questionable data are well above that and pushing four feet of rain. Victoria is a solid 300mm although a mere 240 near the water. 900mm ish N. Shore mountains. Vancouver proper is in the 350mm range. Increases moving east to hope where 657 mm has fallen through yesterday.

The Sept-Nov period has crushed 1980 to present records in one precipitation analysis product. By far the wettest fall the LML and parts of the island have seen — will report back when have the longer term perspective. Likely a primary reason that the 14th-15th event (and since then) was so destructive.

#62 Blacksheep on 12.01.21 at 12:15 am

Crowded # 54,

“Will the Fraser Valley break all previous rainfall records?
Only Faron and inquiring minds will know.

Previous rainfall record 520mm in Nov 2006
Possible rainfall in Nov 2021 …. 600+mm ?
23.5 inches of rain….in one month.
————————————-
Forget one month, Florida’s record for 24 hours is 23.3″

In US the average 24 hr rain fall record, per state is 15.1”

Its not the rain that’s the problem, its building river front or on a drained lake bottom, combined with a complete lack of infrastructure spending over the past 50 years that’s the real issue.

https://weather.com/news/climate/news/extreme-rainfall-precipitation-recorded-50-states

#63 Jimini on 12.01.21 at 3:02 am

I dropped The Hammer 5 years ago, one of my better life moves, but I’m 55.

If your gonna ride the GO, do when your young, consider it working overtime and make it productive time. 2 yrs will go fast and keep you focused. Never give up those juicy PREs.

And it the meantime look for a TO boy friend to make it easier.

#64 Prince Polo on 12.01.21 at 6:17 am

Keep up the great work!
RY – 11% divvy raise.

https://www.newswire.ca/news-releases/royal-bank-of-canada-reports-fourth-quarter-and-2021-results-899469912.html

#65 ogdoad on 12.01.21 at 7:22 am

#33 SW on 11.30.21 at 6:16 pm

Well, one engineer giveth, the sanitation engineer taketh away.

Og

#66 Wrk.dover on 12.01.21 at 8:00 am

#62 Blacksheep on 12.01.21 at 12:15 am
Forget one month, Florida’s record for 24 hours is 23.3″
_______________________________

In 1988 a resident friend in Key West told me a tale of a rain event with 22″ in 24 hrs. He said surrounding sea level even temporarily rose about a foot, as there was no where for it to go.

I heard another story about empty glasses quickly overflowing in the rain at a Jamaican resort, while the partiers in the hot tub watched! The rain water on the pool deck was easily an inch deep as it happened.

#67 Sunny South on 12.01.21 at 8:02 am

Elaine. I wish you had my experience/ wisdom, and that I had your age. Ahhh to be 28 again. My advice. If your contract allows you to sell now and bank some cash then do it. Good luck.

#68 Felix on 12.01.21 at 8:20 am

DELETED

#69 crowdedelevatorfartz on 12.01.21 at 9:26 am

‘If you don’t come to my party…. Then I want my invitation back.”

https://www.reuters.com/world/china/china-not-inviting-western-politicians-who-threaten-boycott-beijing-winter-games-2021-11-29/

Xi and Putin ( The Two Dictators) will have the bar all to themselves.

I wonder when Trudeau will grow a spine and announce Canada’s boycott of the Olympic farce.

#70 Dharma Bum on 12.01.21 at 9:29 am

#16 Common Sense

E made $200k doing virtually nothing…
———————————————————————————————–

That’s the best way!

Is there any other way? Only for suckers.

She should sell, pay the cap gains tax, and invest the balance in a Garth sanctioned portfolio. Let it just grow.

Keep adding her savings from the current slave job to the investment portfolio. Save hard, save big, and keep investing.

Very soon, she’ll be earning a lot by doing very little.

It’s called being smart.

And Lazy.

I know.

Anyway, time for a nap.

#71 Oakville Rocks! on 12.01.21 at 9:32 am

In a perfect world, Elaine would find a job in the Hammer and enjoy all that Hamilton has to offer.

Hamilton is a fantastic city with very friendly people.

It has the perfect mix of old houses, MCM houses and interesting new build. Being the waterfall city there is so much nature to enjoy, especially if you like to ride a bicycle. And McMaster has a superb engineering school so Elaine can continue her education. Really, the only drawback is that the city tends to vote NDP.

Having said that, I am not sure I could endure a commute to a Toronto job – so sell your condo in the Hammer if you must.

Oskee wee wee! Oskee wa wa! Holy mackinaw! Tigers! Eat ‘em raw!

https://www.thespec.com/life/local-history/spec175/2021/05/08/tiger-cats-oskee-wee-wee-cheer-turns-100.html

Go Cats! Lets kick some Argo butt on Sunday.

#72 Chameleon on 12.01.21 at 10:03 am

How far is Felix going that he’s getting deleted?

Personally, I’m curious.

Meeeeeow!

#73 millmech on 12.01.21 at 10:03 am

With 400k new Canadians arriving every year along with another 100k in students probably another 100k TFW she would be crazy to sell. The place will double again in two years so why throw away 200k more. She does not have to live there it will be based on her intent when she bought it.
Interest rates are going up about 1%-2% in that time frame so a mortgage could be had for around 3% and with all the new Government incentives to cool the market it may go even higher up in price.
I do not know any new Canadians talking about rate resets, REITs, stocks, all that they know and want is that golden ticket to wealth in Canada which is real estate.
Remember that houses went up on average $300k last year, what other investment has ever done that well in a year.

#74 Dr V on 12.01.21 at 10:08 am

70 Dharma

“Keep adding her savings from the current slave job ”

She doesnt have a slave job. She most likely enjoys what she does and gets a great deal of satisfaction from it, and also contributes to the greater good. Top that off with decent pay and it’s a recipe for a good life.

And yes, definitely invest. It’s not being lazy. It’s being efficient.

#75 Ponzius Pilatus on 12.01.21 at 10:50 am

#69 crowdedelevatorfartz on 12.01.21 at 9:26 am
‘If you don’t come to my party…. Then I want my invitation back.”

https://www.reuters.com/world/china/china-not-inviting-western-politicians-who-threaten-boycott-beijing-winter-games-2021-11-29/

Xi and Putin ( The Two Dictators) will have the bar all to themselves.

I wonder when Trudeau will grow a spine and announce Canada’s boycott of the Olympic farce.
————————-
That’s easy for you to say.
You did not train for 4 years for this opportunity.

#76 Ponzius Pilatus on 12.01.21 at 11:08 am

Apparently, there’s a shortage of Mall Santas this year.
I’d apply, but I’m on a diet.
Too skinny now.

#77 Yukon Elvis on 12.01.21 at 11:09 am

#69 crowdedelevatorfartz on 12.01.21 at 9:26 am
‘If you don’t come to my party…. Then I want my invitation back.”

https://www.reuters.com/world/china/china-not-inviting-western-politicians-who-threaten-boycott-beijing-winter-games-2021-11-29/

Xi and Putin ( The Two Dictators) will have the bar all to themselves.

I wonder when Trudeau will grow a spine and announce Canada’s boycott of the Olympic farce.
+++++++++++++++++++

Boycott the bastards. Hold the games in Taiwan. Send a message.

#78 Ponzius Pilatus on 12.01.21 at 11:20 am

#77 Yukon Elvis on 12.01.21 at 11:09 am
#69 crowdedelevatorfartz on 12.01.21 at 9:26 am
‘If you don’t come to my party…. Then I want my invitation back.”

https://www.reuters.com/world/china/china-not-inviting-western-politicians-who-threaten-boycott-beijing-winter-games-2021-11-29/

Xi and Putin ( The Two Dictators) will have the bar all to themselves.

I wonder when Trudeau will grow a spine and announce Canada’s boycott of the Olympic farce.
+++++++++++++++++++

Boycott the bastards. Hold the games in Taiwan. Send a message.
—————————-
What’s your opinion on the 2022 Soccer Worldcup being held in corrupt and autocratic Quatar?

#79 Quintilian on 12.01.21 at 11:49 am

Elaine:
DO NOT SELL.
None of the posters can possibly know the future.

I am a housing bear/ bubble believer, and no way would I buy now.

BUT, I would not sell now.
A balanced and diversified portfolio would include RE.
Since the gains have been a “gift” why not hang on.

Logic, numbers, history would suggest that a collapsing of the housing market in inevitable. However, none of these elements seem to be affecting the market.

So as an hedge, I would hang on.

#80 Sail Away on 12.01.21 at 12:28 pm

#79 Quintilian on 12.01.21 at 11:49 am

Elaine:
DO NOT SELL.
None of the posters can possibly know the future.

——-

Here you are giving advice again, Q, and to an engineer no less.

Please provide verifiable bona fides so the steerage can vet your character and track record.

#81 Yukon Elvis on 12.01.21 at 12:34 pm

#78 Ponzius Pilatus on 12.01.21 at 11:20 am
#77 Yukon Elvis on 12.01.21 at 11:09 am
#69 crowdedelevatorfartz on 12.01.21 at 9:26 am
‘If you don’t come to my party…. Then I want my invitation back.”

https://www.reuters.com/world/china/china-not-inviting-western-politicians-who-threaten-boycott-beijing-winter-games-2021-11-29/

Xi and Putin ( The Two Dictators) will have the bar all to themselves.

I wonder when Trudeau will grow a spine and announce Canada’s boycott of the Olympic farce.
+++++++++++++++++++

Boycott the bastards. Hold the games in Taiwan. Send a message.
—————————-
What’s your opinion on the 2022 Soccer Worldcup being held in corrupt and autocratic Quatar?
+++++++++++++++++++
We could send you to Quatar to show them how it is done. You could be a goal post or something.

#82 Sail Away on 12.01.21 at 12:45 pm

#49 Ponzius Pilatus on 11.30.21 at 8:45 pm

The words “honorable” and Sailo are incomparable.

But if he should take the “honorable” step, and decide to leave Canada, I’ll be “honored” to escort him to the border.

And make sure he takes all his firearms with him.

——–

Here today, gone tomorrow, then back again. It’s like a big North American funhouse. I consider Canada and US to be a giant, fairly similar territory, holding the Sail Away dynasty warmly in a rewarding embrace.

It’s a bit ironic that my favourite upland gun is a custom 16ga SxS, crafted by master gunsmith Josef Hambrusch of Ferlach, Austria in 1947. The piece is actually at their factory for a full reconditioning right now after much shooting this year.

I’ll accept an escort to the border anytime. You may have to walk quite briskly to keep up with the Tesla, though.

#83 Hmmm... on 12.01.21 at 1:23 pm

Risk adverse and has been reading the blog since 2015, yet bought a pre-construction condo because of a boyfriend and a job prospect (not an actual job)?

No ties to Toronto except for family and job? What do the mils consider to be “ties” these days? Just wondering.

#84 Polozified on 12.01.21 at 2:01 pm

#79 Quintilian on 12.01.21 at 11:49 am
________________________________

It’s only going to get worse, tax-wise, for her the longer she waits. The slavering masses are howling for blood of property investors (intentional or not).

#85 leebow on 12.01.21 at 2:11 pm

#82 Sail Away
#49 Ponzius Pilatus

You two guys are like Yehudi Menuhin and David Oistrakh playing Bach’s double concert. With the slight difference that they produced harmony and you produce crap.

#86 crowdedelevatorfartz on 12.01.21 at 2:18 pm

@#78 Pristine Ponzie Pulpit Preaches
“What’s your opinion on the 2022 Soccer Worldcup being held in corrupt and autocratic Quatar?”

+++

Well , like the Olympic Committee members (or as they are known in their world…. The Lords of the Rings).

I hold the World Cup Organizing Committee on a similar pedestal …….somewhere below an outhouse pit….somewhere above a politician..

#87 crowdedelevatorfartz on 12.01.21 at 2:21 pm

@#76 Ponzies Portyly Pumpkin
“Apparently, there’s a shortage of Mall Santas this year.
I’d apply, but I’m on a diet.
Too skinny now.”

+++
Easy.
Put the Santa outfit on upside down and your unusually large Austrian head can be your belly.

#88 James on 12.01.21 at 3:04 pm

#49 Ponzius Pilatus on 11.30.21 at 8:45 pm

#46 Shawn Allen on 11.30.21 at 8:19 pm
Oat to the Queen

#44 Sail Away on 11.30.21 at 8:06 pm
Hmmm… as an immigrant to Canada, I took an oath to the Queen of England.

If Canada pulls a Barbados, am I still obligated to support the old bird?

********************************
Yes, of course. And the honorable thing for you to do will be to leave this country if it “pulls a Barbados”.
——————–
The words “honorable” and Sailo are incomparable.
But if he should take the “honorable” step, and decide to leave Canada, I’ll be “honored” to escort him to the border.
And make sure he takes all his firearms with him.
____________________________________________
Thank god I was born here and did not have to take an oath to the Elite Old British Monarchy. What a was of taxpayer money and in turn we get what? The inbred Royals on our money? Time give them the boot. I can not stand knowing that the incompetent and cheating Charles will soon be in charge!

#89 Don Guillermo on 12.01.21 at 3:12 pm

#88 James on 12.01.21 at 3:04 pm
#49 Ponzius Pilatus on 11.30.21 at 8:45 pm

#46 Shawn Allen on 11.30.21 at 8:19 pm
Oat to the Queen

#44 Sail Away on 11.30.21 at 8:06 pm
Hmmm… as an immigrant to Canada, I took an oath to the Queen of England.

If Canada pulls a Barbados, am I still obligated to support the old bird?

********************************
Yes, of course. And the honorable thing for you to do will be to leave this country if it “pulls a Barbados”.
——————–
The words “honorable” and Sailo are incomparable.
But if he should take the “honorable” step, and decide to leave Canada, I’ll be “honored” to escort him to the border.
And make sure he takes all his firearms with him.
____________________________________________
Thank god I was born here and did not have to take an oath to the Elite Old British Monarchy. What a was of taxpayer money and in turn we get what? The inbred Royals on our money? Time give them the boot. I can not stand knowing that the incompetent and cheating Charles will soon be in charge!
************************************
Good thing we have Trudeau to distract us!

#90 crowdedelevatorfartz on 12.01.21 at 3:22 pm

@#88 King James version
“I can not stand knowing that the incompetent and cheating Charles will soon be in charge!”

++++

Soooo, you won’t be tossing your hat in the air and yelling “Hail to King Charles!” ?
Pity.

#91 mike on 12.01.21 at 6:26 pm

pretty sure you only need to live in the condo 1 year for PRE

Nope. – Garth

#92 meslippery on 12.01.21 at 10:09 pm

Elaine invest the 200k getting 6% or $12k per annum.
Ta-Da rent in Toronto 1k per month.