False flags

From the Rock to the Valley, a common theme emerges. Olympus is falling.

“Even the East Coast is experiencing a shot of reality, Garth,” writes Claude. “This home located in Pasadena NFLD is seriously discounted – from a listing price of $1.2 million, they have sliced a big $500,000 off, to $699.000. For sure it’s worth much more than the asking price, the pressure must be on big time in accepting reality.”

And six thousand kilometers to the west, comes this news from Kelowna. “This is an example of exactly what the data is pointing out,” a local blog dog reports. “Falling market, so, panic listings will start emerging for anyone cash strapped. This one is coming in about 27% down in price compared to previous listings in the same area over the past few months. Wow. Lots of detached houses starting to break below the $1M mark. People are slowly starting to wake-up to what has already happened. Props to this one for trying to set a bit of a floor rather than chase the market down like all of the other sitting ducks wondering where the buyers went.”

As this blog has told you, housing assets will be tanking for some time in penance for the ridiculous, giddy ride they took us on. Property corrections are long events, often taking months (or years) to bottom, then a decade (or more) to restore. Along the way everyone should be suspicious of the false flags the Real Estate Industrial Complex will put out to deceive and mislead.

That brings us to Zoocasa. Be careful, kids.

The house-flogging website and enterprise has just handed us a great example of why never to trust anyone under 30. Zoocasa’s media release this week states unequivocally that it’s cheaper in some major cities to buy real estate (a starter condo) than to rent. Examples are Mississauga and Oshawa and, of course, it’s false. Amateurish, shallow, deceiving. But it plays into the pervasive social myth that ‘renting is throwing money away’ and nobody rational would ‘pay a landlord’s mortgage’.

Rents are rising, for sure. Real estate values are dropping, of course. And Zoocasa should be ashamed of publishing trash like this:

Comparing a monthly mortgage payment to rent, as if that’s the only overhead involved in property ownership is fallacious and weird. Once again this pathetic blog will have to tell you why it’s cheaper to rent than own, even when we use the latest tenancy costs or compute buying a crappy one-bedder condo somewhere in the soulless, car-centric wilds behind Square One mall.

In the Mississauga example a small condo costing $628,100 with a 20% down payment means tying up $125,620, with closing costs of about $12,000. Thus the mortgaged amount would be $514,480. Financing that at 4.49% (after you pass a stress test at 6.49%) with a 30-year amortization (which is a really bad idea as you will see in a moment) requires a monthly of $2,591. Presto! says Zoocasa. That’s less than the average rent of $2,820.

Of course, forgotten by the Z kids (or purposefully omitted) are the extras. Condo fees average about 55 cents a foot, which comes to $385 a month for a 700-foot unit. Property tax in Mississauga runs at 0.803063% of market value, adding another $420 monthly. Of course the down payment of $125,620 (even if your Mom gave it to you) poses an opportunity cost, since if it were invested for a modest 6% return that would equal $628 a month.

This truer monthly ownership cost (and we did not add in the extra insurance premium an owner pays, or any special assessments, or utilities or appliance replacements) comes to $4,024, which apparently is higher than $2,820 to rent the same space.

Over five years the owner pays $241,440 to live there. Of that, $109,608 is interest. And after paying almost a quarter million dollars, the owner still owes $468,622 on an initial borrowing of $514,480. Ouch. That’s what higher mortgage rates and a lower amortization do – together then suck a huge amount of cash flow, and leave you beholden. Of course, if interest rates are higher after 60 months, it all gets worse. And did we mention the potential of capital loss in the value of the condo? That’s exactly what’s happening now.

And the renter?

She didn’t have to save $125,620 or become obligated to anyone for that amount. She spent $169,200 over five years to live there, not $241,440, thereby saving $1,200 a month. And after five years she doesn’t still owe the bank $468,622. She owes nothing.

I know, math is hard. People lie. Get used to it.

About the picture: “I am grateful for your blog, thank you,” writes Tom. “Perspective is everything and I appreciate your reasoned and consistent themes. ‘The advance it permanent, the decline in temporary.’ If Rosie, the beauty in the attached picture could talk, that is what she would be saying. This picture was recently taken in the foothills outside Cow-town where I was spending some time with my brother and his son after the great lockdown had kept us apart for the better part of two years. Our Father died during that time and it was the first time we had to spend together and count our blessings for the joy and wonder of life. Oh and yes, while we were doing that, the markets were having a hissy-fit. But as Rosie says, “The advance is permanent and the declines are temporary. Just enjoy the view, dude.” Dogs are amazing!

103 comments ↓

#1 Andrewski on 08.11.22 at 5:21 pm

“People lie, get used to it”. Lying seems to be endemic in the real estate industry.

#2 That Guy on 08.11.22 at 5:24 pm

One thing I’d like to add Garth. Tax savings! Our beloved renter, saving $1,200 a month in her RRSP would receive tax refunds every year, boosting the difference even higher! If she has children, she can put the tax refunds in their RESPs, getting another 20% on top of her tax refund. Truly, a win for the whole family!

#3 WTF on 08.11.22 at 5:32 pm

Yep, My DT Van condo 6k cheaper to rent than buy, if I go by the two condo for sale asking prices (which haven’t sold yet in 2 months) 1.7 and 1.5m.

Meanwhile the 60/40 B+D Kicked out 6.9% annually over the past 8 yrs. Getting interesting. Making bank on investments and RE taking a beating.

#119 Yesterday Philco “Relying on the news for political view is the same as relying on it for your financial success. Worthless.”
————————————————————
Speaking of worthless : your mental meanderings are about as useful and verifiable as a certain Twice impeached, whiny, habitually lying, crybaby stuck in 2020.

The rats are leaving the ship, didn’t get the memo?

https://lincolnproject.us/insider/

#4 crowdedelevatorfartz on 08.11.22 at 5:32 pm

Picture looks like Bragg Creek or maybe Canmore.

#5 T-Rev on 08.11.22 at 5:36 pm

I kinda wish the RE industry would have to take on the same transparency and fiduciary obligations as the financial industry. Trash like this should get Z in trouble with the RE equivalent of the SEC, except there isn’t one.

Rent kids- your freedom is more important than property, and cheaper too.

#6 Prince Polo on 08.11.22 at 5:39 pm

Living behind SQ1 is so cool.

Signed,
A loser winner renter

#7 Lost Gen on 08.11.22 at 5:42 pm

Now is a good time to buy real estate in Toronto.

When I travel on the TTC, there is a growing number of young, ambitious and hardworking international students who pack the 6am and 3pm rush hour on my route to work in the factories for large Canadian retailers.

They pool up their rent that 5 of them can afford to pay current market rate for a 2-bedroom apartment.

Now is a good time to own rentals or REITs like ironically Minister of Housing, Ahmed Hussen, modern day Jesus expel the bankers, Pierre Polievre and other politicians.

#8 Jason on 08.11.22 at 5:44 pm

The problem is, most people don’t save the difference. In fact the vast majority don’t – they spend it. A mortgage = forced savings. And yes there’s a significant cost, but if at the end of the day, the average person’s net worth increases by paying down their mortgage, that’s not bad. The average renter’s net worth won’t increase. Very few, will have the knowledge, savvy, and self-control to invest the savings they get from renting.

The example just showed how higher rates + long amortization is a very poor ‘forced savings’ plan. – Garth

#9 The General on 08.11.22 at 6:09 pm

Who to blame, who to blame? How about our main stream media for one? Are there any real reporters left in this country? I’m amazed the powers that be even allowed your Elgin Hall victory to be featured. Got to stick to the pre-authorized narrative’s of talking head teleprompter readers and taxpayer bailed out reporters, right? By the way, love the shepherd :)

#10 chalkie on 08.11.22 at 6:12 pm

It’s literally been a nose dive of home prices in some areas right across the country, listings dropping, not by the 10’s of thousands, but by the hundreds of thousands on some homes. Emotions and fear are tools that we all have and at times, emotions can cause us to make nonrational decisions, something that can cause a lifetime of hurt. If you were all cash in June, you were the king of the hill as you swooped up those bargains in stocks, if you are all cash today, just two months later, you will need a few boxes of tissues, if the FOMO’s have not bought out Costco and Walmart. Are you still on the sidelines, wondering if you jump in and buy that home or not, the water is still cold and deep, so hold onto that rope for at least another 8 to 12 months, as you wait for the water and temperate to get lower, before wading into the ocean. If you have the FOOP feeling, then you would be right, save you money, its hard to come by. If you are in the market to sell, don’t set unrealistic and unachievable prices, or you could do just that and still own the home on the market for the next five years Just in case you were wondering, FOMO is Fear of Missing Out and FOOP is Fear of Over Paying.

#11 Dave on 08.11.22 at 6:12 pm

That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?

#12 Ohm on 08.11.22 at 6:20 pm

I just cannot beleive what a person is willing to pay for a lousy condo???
I am a renter, doing well and love it..

#13 islander on 08.11.22 at 6:21 pm

https://www.urbanyvr.com/video-of-vancouver-condo-deficiencies/

This is the sort of crap they’re peddling in Vancouver.
Buyer beware – hell! It’s even renter beware here!

#14 Garfield Meowth on 08.11.22 at 6:22 pm

After my grandpa passed away I was looking through his documents. Found out that he had a peace bond because of a neighbor dispute.
He was forced to sell the home smack in the early part of 2002 for $125,000. The house was appraised for $1.2 million as it’s in Leslieville.
The police are corrupt. That’s all I can tell you. They forced a handicapped man to sign that peace bond.

#15 The General on 08.11.22 at 6:22 pm

Money grubbing, Audi driving, snakes in 3 piece suits and otherwise morally bankrupt, lying realtors: Are you still proud of yourselves? Is it possible to be more distrusted than politicians? Apparently it is. Bravo!

#16 TurnerNation on 08.11.22 at 6:22 pm

Hot take. Are jobs going unfilled as employers are not allowed hiring of certain qualified workers?
Kanadian Kquotas?

.BMO INTRODUCES NEW RECRUITMENT PROGRAM FOR DISPLACED PERSONS, IMMIGRANTS, AND REFUGEES
To help match prospective candidates with open roles, BMO has partnered with two specialized employment organizations:
ACCES Employment is a leader in helping newcomers navigate the Canadian job market…
Upwardly Global is the first and longest-serving national organization that helps immigrants and refugees to the U.S. restart their careers. (stockwatch.com)

https://www.blogto.com/city/2022/08/ontario-free-training-education-jobs-auto-industry/
“Applications are open now and the program is slated to run until March of 2023, but those who apply must be young (15-29), a racialized (non-caucasian) person, an Indigenous person, or a woman.”


— Why try. Roll out of school and into a government job. WFH to boot. Plenty of time for gardening, car waxing, cooking, you name it. WFH, wink wink.
Friends of The Party are paid very well.

.Public servants earning over $100K grew by 39,000 last year: Canadian Taxpayers Federation (nationalpost.com)

#17 Quintilian on 08.11.22 at 6:36 pm

“ The house-flogging website and enterprise has just handed us a great example of why never to trust anyone under 30.”

Partly true, I would add not to trust anybody of any age if they are house pumpers.

To the wider point… remember that rents will come down, but the debt trap that the homedebtors were railroaded into, will remain, and at higher interest rates at renewal time.

Unless the economy tanks, and then they might have even a bigger problem.

Tick Tock, Tick Tock

#18 Damifino on 08.11.22 at 6:38 pm

For sure it’s worth much more than the asking price…
————————————

Only in real estate can there be such a statement. With equities, the “asking” price actually is the price. Sure, it might change soon, but if it does, then that would be the price. No more, no less, no question.

If a home is “worth” more than asking then why can’t it be sold for more? Simply because it’s actually not worth more.

#19 Yukon Elvis on 08.11.22 at 6:46 pm

#11 Dave on 08.11.22 at 6:12 pm
That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?
+++++++++++
That place is not in Kelowna proper, it is on the other side of the lake/bridge. Not as “desirable” as Kelowna proper. Smoke haze in the sky this morning, no air quality alerts yet.

#20 mj on 08.11.22 at 6:46 pm

this is still the beginning. Wait until after the rate hike in September

#21 Steven Rowlandson on 08.11.22 at 6:55 pm

My dose of reality is that on a $9,500 income to date this year I can only afford a $28,000 home on a lot in Barrie Ontario in 2022. Or is it 1965? May be the past is prologue. If so watch out below. Plenty of room to drop…. Remember folks it is only a place to live. No need to pay much for it.

#22 Faron on 08.11.22 at 6:55 pm

#4 crowdedelevatorfartz on 08.11.22 at 5:32 pm
Picture looks like Bragg Creek or maybe Canmore.

Highwood Pass would be my guess. K Country.

#23 GW on 08.11.22 at 7:01 pm

#11 Dave on 08.11.22 at 6:12 pm
That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?

Ahhh, the shrill cry of the Common Jelousios Ignoramus -native to vast swaths of Canada. We can sometimes hear it’s bitter wail as we lounge pool side in the hot Okanagan sun. Indeed, life is good in the pleasant valley.

#24 Eldorado on 08.11.22 at 7:07 pm

Take another 300k off the house and it may achieve something close to asking.
L

#25 THE DANDADA on 08.11.22 at 7:13 pm

“The house-flogging website and enterprise has just handed us a great example of why never to trust anyone under 30.” ………

or the BANKS knowing this….

“Over five years the owner pays $241,440 to live there. Of that, $109,608 is interest. And after paying almost a quarter million dollars, the owner still owes $468,622 on an initial borrowing of $514,480.”

Their ALL crooks!!

#26 Big Bucks on 08.11.22 at 7:14 pm

Condo fees and property taxes won’t be going down either.Many condo owners are getting whacked with one time upgrade/repair payments of $10,000.00.

#27 millmech on 08.11.22 at 7:20 pm

If K-Town is too expensive just move down south 45 minutes.
https://www.castanet.net/news/Penticton/379630/Penticton-mayor-calls-for-provincial-assistance-with-high-crime-rate
The whole valley is becoming a cesspool!

#28 TurnerNation on 08.11.22 at 7:21 pm

Erm I guess we may call these the Permanent Rolling Social & Economic Lockdowns?

.UK Braces for Blackouts, Gas Cuts in January in Emergency Plan. The UK is planning for several days over the winter when cold weather may combine with gas shortages, leading to organized blackouts for industry and even households. (bloomberg.com)


— What we knew years ago, hitting the mainstream today.

https://financialpost.com/commodities/agriculture/crop-yields-will-suffer-fertilizer-reduction-targets-pitting-farmers-against-federal-government
‘Crop yields will suffer’: Fertilizer reduction targets pitting farmers against federal government
Tactic to lower emissions will reduce yields at a time when food security is a major concern, farmers argue

—AHEM:
#126 TurnerNation on 03.18.21 at 11:48 pm
Keep an eye on the food supply and keep in mind, Famines are man-made (Government made).

#17 TurnerNation on 09.22.21 at 11:30 am
Watch the food supply. Been posting for years on here that all famines were government-made.


— Islands are the perfect isolated homogeneous test bed aren’t they?

“Patience is something many in Sri Lanka are clinging to, as food prices have spiked by 90 per cent and cooking fuel and gasoline are in short supply in this island nation crippled by economic collapse and political instability.” (cbc.ca)

#29 CanadianOne on 08.11.22 at 7:23 pm

#8 Jason on 08.11.22 at 5:44 pm

The problem is, most people don’t save the difference. In fact the vast majority don’t – they spend it. A mortgage = forced savings. And yes there’s a significant cost, but if at the end of the day, the average person’s net worth increases by paying down their mortgage, that’s not bad. The average renter’s net worth won’t increase. Very few, will have the knowledge, savvy, and self-control to invest the savings they get from renting.
_________________________________________________________

Really,

I thought there were folks who routinely took out HELOCs to fund life style not the austere, conservative or frugal self-control! Self-control doesn’t just magically appear because you signed onto the dotted line saying “mortgaged”.

It’s more of the keeping up with the Joneses.

In that regard the ability to save/invest is the real self-discipline NOT taking on more debt in terms of inflated/insanely valued shoe boxes.

#30 Reality is stark on 08.11.22 at 7:29 pm

Nothing has changed.
It’s gonna be a rough ride in this country.
Outrageous public and private debt.
Heavily overpaid public service.
Dead housing sector.
The pain will be real.
Find a job with a financially strong organization and keep your head down for a year. Rent and start building a portfolio and stay away from penny stocks.
Start working 80 hour weeks to build up your toughness.
Learn how to build your own house or buy a shell and gut it.
Sun up to sun down.
That whole work/life balance thing will just keep you poor.

#31 Grunt on 08.11.22 at 7:33 pm

DELETED

#32 Bezengy on 08.11.22 at 7:34 pm

People lie. Get used to it.

——————————-

Or we enforce laws that make those who make fraudulent claims pay up.

#33 Sail Away on 08.11.22 at 7:34 pm

#4 crowdedelevatorfartz on 08.11.22 at 5:32 pm

Picture looks like Bragg Creek or maybe Canmore.

——–

Looks a lot like Kalispell, Montana, 5 hours south of cowtown, where we’re in process of finalizing an October elk/mule deer hunt.

So, first a month in the Chilcotins, then a week of pheasants in Red Deer, then 2-3 weeks in Montana. Dang. Hectic fall. Hope we can afford it.

I’ll do my best to keep blogdogging throughout.

#34 KLNR on 08.11.22 at 7:36 pm

@#1 Andrewski on 08.11.22 at 5:21 pm
“People lie, get used to it”. Lying seems to be endemic in the real estate industry.

mostly people lie to themselves about what they can comfortably afford.
paying 2mil+ for a slanty semi in TO or 1mil+ for a seasonal cottage in the bunnypatch case in point.

#35 crowdedelevatorfartz on 08.11.22 at 7:44 pm

@#18 Yukon
“Not as “desirable” as Kelowna proper.”
+++
The last few times I’ve visited Kelowna my overall impression was of the inordinate amount of Billboard signs when entering or leaving town.
A time warp to the 1960’s
Mind you. The commute from the Swartz Bay Ferry terminal into Victoria is the same barrage of tacky billboards.
1st Nations’ land?
(As if they need the few piddly 1000’s per month in advertising revenue with Trudeau at the helm handing out billions in reparation payments hand over fist.
Anywho.

“Desirable” and Kelowna don’t equate in my recollections of the typical summer “Smoke-anogan” cough fest.

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

@#21 Faron
“Highwood Pass would be my guess. K Country.”
+++
Ahhhh yes Kananaskis golfing or hiking.
Beauty.

*************************************
Hey Ponzie!
Seems they found ANOTHER 500 year old goat in Austria?!?!

https://www.nationalgeographic.com/environment/article/500-year-old-goatelope-mummy-found-in-melting-european-glacier
Now you have competition.

#36 The Original Jake on 08.11.22 at 7:50 pm

Let’s not forget the ball and chain that real estate is in a declining market when you can’t move for an employment opportunity or just a desire to get out of dodge.

#37 Victor Llearna on 08.11.22 at 7:57 pm

Zoocasa either needs to learn a math or it is just a propaganda site for those greedy real estate agents trying to keep the gravy train going .

#38 Sailedaway on 08.11.22 at 8:06 pm

28 TurnerNation on 08.11.22 at 7:21 pm
Erm I guess we may call these the Permanent Rolling Social & Economic Lockdowns?

.UK Braces for Blackouts, Gas Cuts in January in Emergency Plan. The UK is planning for several days over the winter when cold weather may combine with gas shortages, leading to organized blackouts for industry and even households. (bloomberg.com)

———————————-

You’re incorrect (as usual)

The main issue in the UK has been the diminishing production of North Sea gas and selling away gas storage sites to builders, plus the closure of the gigantic gas storage site in the North Sea.

I also nearly vomited with your dog whistle like post on immigration, don’t worry people abroad are starting to have a very different opinion of Canada and see no particular reason to come. Things have changed.

#39 Wallflower on 08.11.22 at 8:11 pm

Relative has one of those 600 sq ft one bedders. Condo fees 550+ and has $8,000 assessment plus 6 months of retrofit paind. This is after one year of hell wirh one elevator and 6 floors of residents having to move out when nearly new.

#40 KuatoLives on 08.11.22 at 8:12 pm

Kelownas population has now swollen to 230k and its still a highway town. It’s borderline unliveable. Crime is out of control. Ben Lee Park is full of needles. You hear gunshots every other night. Basran has stuffed all the half way and wet houses into Rutland making the neighborhood look like something out of the Walking Dead.

But it has a lake.

#41 renter in Surrey on 08.11.22 at 8:15 pm

THs in Fraser Valley are still $200K+up from 2019

#42 Sail Away on 08.11.22 at 8:18 pm

#29 CanadianOne on 08.11.22 at 7:23 pm

Re: HELOC

I thought there were folks who routinely took out HELOCs to fund life style not the austere, conservative or frugal self-control! Self-control doesn’t just magically appear because you signed onto the dotted line saying “mortgaged”.

——–

Hey, our borrow-to-invest HELOC taken out just a few short months ago currently sits at +5.2%.

Assuming a $1m HELOC, that’s right around $50k to fund our high-rolling lifestyle. Free money! Yow!

#43 Mattl on 08.11.22 at 8:21 pm

#11 Dave on 08.11.22 at 6:12 pm
That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?

—————————————————
Zero smoke here all summer.

And if your theory is smoke turns off buyers, try explaining the past 5 years, some of the smokiest on record and properties doubling in price.

Also the fires have been bad but that has to do mostly with all of the dead standing due to beetle kill. Once an area burns through it is good for a long while. We have definitely been in a bad cycle but will come out of it.

What paradise of a city do you live in?

#44 Ronaldo on 08.11.22 at 8:39 pm

So that house in Kelowna at 2077 Sunview is listed at $23,000 over assessment of $847,000 on July 1/21. Previous year 2020 assessment was $639,000.

The one across the street at 2076 Sunview was assessed at $852,000 July 1/21. Previous year 2020 was $644,000. It was purchased Feb. of 2020 for $644,900.

For the house that is listed they could drop $200,000 and still be ahead of the game depending on when they bought it. The house across the street if it dropped $200,000, they would maybe break even. So a 25% drop would bring the price back to July 2020 assessent. Will see what happens.

#45 Ronado on 08.11.22 at 8:50 pm

Staying on Sunview Dr. in Kelowna. Wanna see something ludicrous.

The house at 2073 was assessed July 1/21 at $1,006,000.
July 1/20 assessed at $754,000.

Now they have it for sale with a asking price of $1,299,900. That is $293,000 over the 2021 assessment and $545,900 over the 2020 assessment.

These people are dreaming in technicolor.

https://www.rew.ca/properties/4261743/2073-sunview-drive-west-kelowna-bc

#46 Slim on 08.11.22 at 8:55 pm

#33 Sail Away

“then a week of pheasants in Red Deer”

Remember, what happens in Red Deer, stays in Red Deer.

#47 DON on 08.11.22 at 8:57 pm

#27 millmech on 08.11.22 at 7:20 pm
If K-Town is too expensive just move down south 45 minutes.
https://www.castanet.net/news/Penticton/379630/Penticton-mayor-calls-for-provincial-assistance-with-high-crime-rate
The whole valley is becoming a cesspool!

********

When times start to get tough (or when party time ends) crime increases.

Lots of misplaced anger out there as reality slaps some folks in the face.

Tensions world wide are on the rise. Check out newspapers in any first World country and see the strife.

Petty crime in mecca retirement area Qualicum Beach / Parksville is rampant and a constant topic in the PQNews. The usual suspects prey on anything the old folks don’t locked up or chain down. The average age in Qualicum is 69. By the time the RCMP arrive the jackels are gone on a quad up the back roads.

#48 Linda on 08.11.22 at 8:59 pm

I agree the Pasadena NFLD property is priced to sell – 13 acres of land for under $700K is indeed a steal of a deal – but good golly. First, one must live in NFLD. It’s a beautiful place but has some epic winter, wind & storm related weather. I suppose if one is retired it doesn’t matter if weather related issues make travel difficult. I also figure if one can pay the price of such a place one has the income to pay for weather related repairs. Or higher insurance premiums. Keeping a place that size in good condition would certainly occupy a lot of time & energy, for sure.

#49 Balmuto on 08.11.22 at 9:00 pm

I agree with all your calculations, Garth, except for the part about adding the opportunity cost of not investing the down payment to the cost of home ownership. Because you are, in fact, investing that down payment in real estate, with the opportunity of earning leveraged capital gains on that investment. A 2% return on a $600k property is a 10% return on a $120k down payment. That’s an opportunity cost to the renter. And even at 0% price return, the owner is building home equity, which is also foregone by the renter. Another opportunity cost. So it works both ways.

Paying debt is not building equity. It is repaying debt. There is only equity built if there is capital appreciation. Now, there is none. – Garth

#50 Ustabe on 08.11.22 at 9:14 pm

Been a while since I was useful, eh?

Got a pond or slow moving water feature? Hot August sun evaporating the water too quick so your pump is subject to cavitation? Just pour in a whack of ping pong balls. Fill it edge to edge. Really slows down the evap thing.

Bacon. Who doesn’t like that. Instead of trying to do the eggs, do the pancakes, do the bacon, do the sausage for that family breakfast…always a pain for the cook, cook the bacon and sausages half way the evening before, cool and into the fridge.

Now you concentrate on the pancakes and eggs, the par-cooked bacon and sausages almost look after them selves. Or delegate, split the dishes to be served up…that is what we did in our cafes/diners, both the par cooking and the multiple folks finish cooking.

And a question, if I might. How come the folks whose advice is always “it is cheaper in the US, move to the US, FLA is the place to be, North Dakota is the place to be”, how come they are still here, year after year, dispensing the same advice that they apparently don’t take?

#51 Snug Harbour on 08.11.22 at 9:18 pm

As a Senior from the 80’s I can tell you a sure fire way to end any housing lottery is raise the interest rates.

It ain’t rocket science… end the free money and poof goes the housing lottery.

#52 crowdedelevatorfartz on 08.11.22 at 9:40 pm

https://vancouver.citynews.ca/2022/08/11/vancouver-three-shootings-vpd/

Not to worry people.
These random shootings will all cease when the Liberal firearm bans on legal gun owners are implemented.

#53 Shirl Clarts on 08.11.22 at 9:50 pm

#19 Yukon Elvis on 08.11.22 at 6:46 pm
#11 Dave on 08.11.22 at 6:12 pm
That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?
+++++++++++
That place is not in Kelowna proper, it is on the other side of the lake/bridge. Not as “desirable” as Kelowna proper. Smoke haze in the sky this morning, no air quality alerts yet.
————-
Here on the west coast, we refer to Kelowna and area as the smokanagan. Actually there is a vape shop there with the same name. It is more fitting when used to describe the forest fire smoke. Yet another smoky season! Will it ever go back to normal?

#54 Dragonslayer on 08.11.22 at 9:54 pm

Overall I agree with your analysis, Garth, but you did pick the most disadvantageous 5 year block of time in your calculations, the first 5 years. As we know, very little principal gets paid down in that period. If we took the last 5 years, where it’s almost all principal, it might look considerably better for owning v. renting.

Nobody stays more than five years in a 700-foot condo in the suburbs. – Garth

#55 Sons of Anarchy on 08.11.22 at 9:57 pm

Kelowna is the biggest real estate bubble on the planet.

Pretty nice summer this year with no forest fire smoke.

There is smoke coming from the gang wars though.

You need to watch out for those pop tarts fresh out of the toaster when driving in Kelowna. That wasn’t the noise of fireworks on the beach son.

#56 Ponzius Pilatus on 08.11.22 at 10:13 pm

#49 Balmuto on 08.11.22 at 9:00 pm
I agree with all your calculations, Garth, except for the part about adding the opportunity cost of not investing the down payment to the cost of home ownership. Because you are, in fact, investing that down payment in real estate, with the opportunity of earning leveraged capital gains on that investment. A 2% return on a $600k property is a 10% return on a $120k down payment. That’s an opportunity cost to the renter. And even at 0% price return, the owner is building home equity, which is also foregone by the renter. Another opportunity cost. So it works both ways.

Paying debt is not building equity. It is repaying debt. There is only equity built if there is capital appreciation. Now, there is none. – Garth
———————————
You forgot that the owner also gets “Pride of Ownership” which entitles the said owner to cut the grass, maintain the house and appliances and fix the fence.
Try calculating the opportunity cost of that.

#57 Bobby Bender on 08.11.22 at 10:21 pm

When amateurs pretend to know how investing works you get this.

https://financialpost.com/fp-finance/cppib-breaks-winning-streak-with-23-billion-loss-amid-market-turbulence

Wanna be cowboys get canned. Golly I wouldn’t have seen that coming. Look guys ‘ you can put your boots in the oven, but that don’t make ‘em biscuits. The bureaucrats, likely a diverse set of inexperienced polititico’s, were appointed to run your pension funds, big mistake.

#58 Ponzius Pilatus on 08.11.22 at 10:24 pm

54 Dragonslayer on 08.11.22 at 9:54 pm
Overall I agree with your analysis, Garth, but you did pick the most disadvantageous 5 year block of time in your calculations, the first 5 years. As we know, very little principal gets paid down in that period. If we took the last 5 years, where it’s almost all principal, it might look considerably better for owning v. renting.

Nobody stays more than five years in a 700-foot condo in the suburbs. – Garth
————————
FURZ does.
Sorry, not good example because he’s a renter.

#59 Terry on 08.11.22 at 10:29 pm

“People lie. Get used to it.”

Very truthful Garth. More people than you realize lie. I think that if you live long enough you will eventually figure out that almost everything in life is a fraud. “They” lie to everybody.

#60 Where's all That Condo Money Going Greedeau? on 08.11.22 at 10:35 pm

Re: #13 islander on 08.11.22 at 6:21 pm

https://www.urbanyvr.com/video-of-vancouver-condo-deficiencies/

This is the sort of crap they’re peddling in Vancouver.
Buyer beware – hell! It’s even renter beware here!
++++++++++++++++++++++++++++++
I was a union tradesman in Vancouver construction for 25 years and that suite should never have passed inspection. It’s not lying, it’s fraud and corruption.
An example: a developer (Holborn Properties https://vancouversun.com/business/local-business/son-of-one-of-malaysias-wealthiest-tycoons-planning-vancouver-developments/). They are the company that bought Vancouver’s Little Mountain Properties 14 years ago with promises of a fair amount of affordable housing since they tore down a great amount of affordable housing at the site. Only one building has been built as of this following story, after tearing down all the original 224 housing units: (https://vancouversun.com/news/local-news/little-mountain-developer-is-fighting-taxes-and-transparency-but-still-not-building-social-housing).
This property was sold by the BC Liberals, Christy Clark was Premier and Rich Coleman the Housing Minister, need I say more? Now Coleman is thinking of running for mayor of Langley in this year’s election.
I saw the birth of the fudging of building quality when the developer on projects I personally worked had a huge nest egg to fix deficiencies for each tower. That was back in the 80s when they built the first residential towers there in Vancouver’s False Creek. That company and the above company has ties to Asia,Malaysia Macao, and have been involved in corruption, need I say more?
Our trade fought for better, stricter oversight. We walked off the jobs a couple times or so because we knew what was going to happen and our union was threatened job loss/future contracts by the developer. So our union capitulated (who knows what happened there). Our tradesman did the best we could with the install, but knew the results that would happen.
The city passed those buildings knowing full well the problem.
By the way former BC Premier Gordon Campbell was mayor of Vancouver when all this went on, he being a former realtor/property developer. Who better to have in there to weed! out any opposition to rubber stamping these projects and they used the media to quell dissent, just like now with everything.
Any one remember leaky condos?
I mentioned many times on this blog and other blogs how I wouldn’t buy a condo in Raincouver unless there was a certain type of install to prevent ingress of water. I am retired over 15 years so cannot comment on the condition of installs presently.
Sheep getting fleeced by the corruption.

#61 the Jaguar on 08.11.22 at 10:40 pm

@#129 NoName on 08.11.22 at 4:40 pm

NoName, please don’t shake my tree. I’m not on any ‘team’ except my own, which is also under attack these days given my DNA characteristics. I only make the point that some of the current conflicts are ‘age old’, and they resurface. They are not new and entirely predictable.

And if it becomes an ‘ouch contest’, there is surely enough ‘blame and accusation’ to go around and keep the home fires burning into eternity. Here’s another story that doesn’t get a lot of airplay. Maybe Ponzi is familiar with this one and could enlighten us……….P.S. I have no German ancestry.

https://www.amazon.ca/Orderly-Humane-Expulsion-Germans-Second/dp/0300198205

On the subject matter, I have it on very good authority that values across the country continue to drop like the WKRP Turkey Drop.

Oh well…good things come to those who wait, or some other nonsensical meandering…….

#62 Where's My Money Going Greedeau? Costa Rica on 08.11.22 at 10:42 pm

Re: #53 Shirl Clarts on 08.11.22 at 9:50 pm

#19 Yukon Elvis on 08.11.22 at 6:46 pm
#11 Dave on 08.11.22 at 6:12 pm

Here on the west coast, we refer to Kelowna and area as the smokanagan. Actually there is a vape shop there with the same name.
+++++++++++++++++++++
I bought my first yape there, had to get it replaced after big hassles.
It is smoggy there even in the winter!!!!

#63 Waystar Royco Shareholder on 08.11.22 at 10:44 pm

Things are going to get even more miserable in Kelowna…on top of being the crime capital of Canada and the epicenter of the Smokanagan, (which gets so.bad some days you cant even go outside) the city boasts the highest level of borrowers with multiple mortgages on the same property. Price drops will continue right through 2023 for sure

#64 Yukon Elvis on 08.11.22 at 10:58 pm

#53 Shirl Clarts on 08.11.22 at 9:50 pm
#19 Yukon Elvis on 08.11.22 at 6:46 pm
#11 Dave on 08.11.22 at 6:12 pm
That place in Kelowna will probably come down more. There are about 70 forest fires burning in BC now. Who would move to the Okanagan, ground zero for smoke and fires?
+++++++++++
That place is not in Kelowna proper, it is on the other side of the lake/bridge. Not as “desirable” as Kelowna proper. Smoke haze in the sky this morning, no air quality alerts yet.
————-
Here on the west coast, we refer to Kelowna and area as the smokanagan. Actually there is a vape shop there with the same name. It is more fitting when used to describe the forest fire smoke. Yet another smoky season! Will it ever go back to normal?
++++++++++++
We also call it the Brokenagan cuz it is so expensive to live here.

#65 crowdedelevatorfartz on 08.11.22 at 11:21 pm

@#58 Ponzies
“FURZ does.
Sorry, not good example because he’s a renter.”
+++
Yesssss.
Furz rents!
The horror.
Allows more money to be invested or stored away.
(Another 10k invested today Ponzie!).
The realtors are starting to panic.
Bills to pay.
Audi leases to renegotiate.
I just keep puttering along….debt free….
Investing….banking some cash…..
Lets call it my Furz strategy……

If you kick your tenants out and rent to me….maybe I’ll share “my secret to success….”

https://www.youtube.com/watch?v=BMtBmlA8pjE

#66 NoName on 08.11.22 at 11:36 pm

@jaguar

It wasn’t my attention to shake your tree I just agreed with wat you wrote.

Maybe later on I’ll ask my colleagues to administer few jolts so remember better. Iam not sure is 277 is good enough or should I go wih 480.

Thank you for the book suggestion, I’ll order it and read it.

NN

#67 The Woosh on 08.11.22 at 11:42 pm

#54 Dragonslayer on 08.11.22 at 9:54 pm
Overall I agree with your analysis, Garth, but you did pick the most disadvantageous 5 year block of time in your calculations, the first 5 years. As we know, very little principal gets paid down in that period. If we took the last 5 years, where it’s almost all principal, it might look considerably better for owning v. renting.

Nobody stays more than five years in a 700-foot condo in the suburbs. – Garth

—————————————————

Not everybody buys a 700 foot condo as their first purchase particularly in the burbs. Let’s be real. Many just bite the bullet and purchase a semi-detached or fully detached. In those cases, plenty stay where they are for a long time (if they like their neighbourhood). I really don’t understand why you constantly choose an extreme example to make your point.

Zocassa chose it. Read the damn post. – Garth

#68 Dr V on 08.11.22 at 11:43 pm

57 Bobby

“When amateurs pretend to know how investing works
you get this.”
—————————————————–

Yeah sure. 4% loss.

So tell us Bob, how have you got your $500B invested?

#69 DON on 08.12.22 at 12:02 am

“On the subject matter, I have it on very good authority that values across the country continue to drop like the WKRP Turkey Drop.”

Now that is funny…ha ha thanks for the memory Jag

#70 Dazed and Confuscious on 08.12.22 at 12:03 am

#1 Andrewski on 08.11.22 at 5:21 pm

“People lie, get used to it”. Lying seems to be endemic in the real estate industry.

——————————–

Ain’t just the real estate industry … it’s ANYWHERE a dollar can be made. Even this blog’s dearly beloved investment industry. It’s human behavior at it’s worst … greed.

#71 Albertistan on 08.12.22 at 12:16 am

#33 Sailaway
Red Deer isn’t considered pheasant country.
Bassano, Patricia, Brooks, Raymond, Magrath, Milk River.
Any of those areas will produce birds.

#72 Realty reality on 08.12.22 at 12:20 am

As this blog has told you, housing assets will be tanking for some time in penance for the ridiculous, giddy ride they took us on. Property corrections are long events, often taking months (or years) to bottom, then a decade (or more) to restore. Along the way everyone should be suspicious of the false flags the Real Estate Industrial Complex will put out to deceive and mislead.

————————————————-

And as I have told this blog … sometimes they are over before they start … 2009, 2018 GTA. But of course, that’s not good for the narrative especially since they are fact since they happened years ago. Not last week.

#73 Unhinged Cyclist on 08.12.22 at 12:22 am

@Garth
“soulless, car-centric wilds behind Square One mall.”

Cars are indeed the cancer that is killing North American cities. It’s as if these cities and their entire infrastructure are designed solely for cars, rather than people. And as a result they are dangerous, noisy, hostile to pedestrians, cyclists and children, and becoming insolvent, because the expanding web of roads, highways and parking lots does not generate a SINGLE DOLLAR of commercial or tax revenue.

When’s the last time you’ve seen kids playing on a street? Rarely, and that’s because parents are terrified of their children playing near what is typically a wide STROAD (the vile hybrid of a street and a road, but with none of the advantages of either), where aggressive metal cage jockeys are encouraged to get up to 70 km/hr.

If like me, you believe cities in North America are broken and dysfunctional, I encourage you to visit Strong Towns, the new urban revitalization initiative:
https://www.strongtowns.org/

#74 Russ on 08.12.22 at 12:27 am

.
Late back to the hovel again. It’s been a busy summer alright.

The missus and I spent a pleasant day on the rock with old friends.

For Ponzie;
If you judge Hawaii by an experience at Waikiki then I think it be similar to judging a Scottish restaurant by an experience with the local “MacDonald’s”

One needs to get out of Honolulu to find a bit of aloha.

For DON:
South island and still operating.

Cheers, R

#75 Balmuto is right on 08.12.22 at 1:35 am

If one assumes investments will definitely return 6% but homes will never rise in value again you can of course use “math” to show the result you want.

But that assumption and ignoring the obvious tax advantages of owning are, let’s be polite and say, arguable.

Which is why in the real world owners have done dramatically better than renters and why renters are upset at the situation.

Taxes, leverage, inflation protection and the fixed term of mortgages vs life long rent are the main reason any proper rent v buy calculator shows buying has been better.

I doubt this time will be different.

#76 Jane24 on 08.12.22 at 2:56 am

Are you seriously telling me that people were willing to pay $1.2 million to live in Newfoundland? Just for an ordinary house. How insane is that. I fly over Newfoundland a couple of times a year on my way in from Gatwick and it is just a ROCK. A large rock but a still a rock.

I always think of the nicer places they could live in the world for far cheaper – the Isle of Wight, the Azores, Malta but no they want to freeze on a rock.

#77 under the radar on 08.12.22 at 5:15 am

A long time ago two lawyers started out , one bought a small building outside of the core , the other rented fancy space downtown 416.
30 years later, the small building is paid and worth millions. Both lawyers did well and prospered.
The lawyer who rented the fancy space has moved a few times at some cost and bother, still works harder than ever, as he still has an expensive lease to motivate him.
Its like the three little pigs and how you choose to build your house.

#78 crowdedelevatorfartz on 08.12.22 at 8:13 am

@#76 Jane24
“I always think of the nicer places they could live in the world for far cheaper – the Isle of Wight, the Azores, Malta but no they want to freeze on a rock.”

+++
I’m impressed.
You didnt tell everyone about your fabulous house in Blighty or the Palace in Southern Italy.

The Newfoundlanders I have met have always been very nice, happy people.
Newfoundland has consistently been rated as the “happiest” place in Canada to live.

Perhaps because boorish snobs dont live there.

#79 Summertime on 08.12.22 at 8:27 am

#75 Balmuto is right on 08.12.22 at 1:35 am

Of course you are correct in long term.

And yet houses have prolonged downturns and if you are overleveraged it could be a curse (while a blessing in growth times).

One thing about the general cost of housing – being it rental or owning:

As far as it surpasses certain threshold/limits and jeopardies or severely damages the overall lifestyle of the top talent, that top talent simply moves on to better, greener pastures.

The middle level talent follows and then we have the current situation when low level talent is moving out, that is actually getting worse by the day.

Considering the future of remote work (no, it is not going away for top talent) places like Spain, Portugal, France, Italy, Greece, even Eastern Europe are many, many times cheaper, with better services and much better weather. No wooden cheap houses, little or no all-glass-substandard condos.

This is why there are so many job openings in Canada that can not be filled. There are simply no smart people who are willing to turn into idiots in order to work for peanuts considering the high taxes and ultra high cost of living.

Some brainwashed locals – sure.
Good luck in getting high productivity out of them.
Good luck also when looking for quality immigrants. I am sure there are billions, trillions of them who will die to pay 2 millions for an old crappy shack in the middle of nowhere.

#80 Love_The_Cottage on 08.12.22 at 8:31 am

#76 Jane24 on 08.12.22 at 2:56 am
Are you seriously telling me that people were willing to pay $1.2 million to live in Newfoundland? Just for an ordinary house. How insane is that. I fly over Newfoundland a couple of times a year on my way in from Gatwick and it is just a ROCK.
_________
With that extensive experience your insight to the local real estate market is certainly invaluable. Thank you for the quality information.

#81 Shawn on 08.12.22 at 8:46 am

Building Equity by paying down debt

Paying debt is not building equity. It is repaying debt. There is only equity built if there is capital appreciation. Now, there is none. – Garth

***********************
Sorry, but as a licensed accountant I have to point out that this claim that paying down debt is not building equity is wrong.

Equity = Assets minus debts. Paying down debt increases equity.

Of course the house asset value could drop or could rise in five years.

Perhaps Garth meant that paying debt does not necessarily increase equity if the house value is also dropping.

#82 IHCTD9 on 08.12.22 at 9:18 am

The ideal scenario is to do both. Own a house, and build a B+D. The fact that the typical FTHB these days can scarce even think about doing this, is a topic worthy of discussion. All my Gen X peers have done both. They’ll retire in a low cost paid for house, with decent B+D’s and dual CPP/OAS’s and some will have a DBP on top.

The road to healing is going back to 6%+ rates, and staying there. I think the home buying culture has changed in Canada too – these folks (and the RE “investors”) will need to burn to eliminate the upward pressure they place on RE. Media will have to see that no one clicks on their house pumping clickbait anymore, and HGTV will have to struggle with viewership. Folks will have to sour on RE right across the board.

The attitude towards housing will have to return to where it was 20+ years ago.

#83 JPaul on 08.12.22 at 9:29 am

Let’s not forget the ball and chain that real estate is in a declining market when you can’t move for an employment opportunity or just a desire to get out of dodge.
————————

Funny you should mention that…

https://www.ctvnews.ca/business/sellers-expecting-yesterday-s-prices-canadians-cope-with-a-correcting-housing-market-1.6023583

#84 SunShowers on 08.12.22 at 9:35 am

Sometimes it’s just hard and emotionally draining having to be the primary breadwinner for your landlord’s family.

#85 Sail Away on 08.12.22 at 9:43 am

#71 Albertistan on 08.12.22 at 12:16 am
#33 Sailaway

Red Deer isn’t considered pheasant country.

——–

And that’s the way we like it.

#86 RyYYZ on 08.12.22 at 9:53 am

#16 TurnerNation on 08.11.22 at 6:22 pm

— Why try. Roll out of school and into a government job. WFH to boot. Plenty of time for gardening, car waxing, cooking, you name it. WFH, wink wink.
==================================

I think your presumption that civil servants don’t work hard is unwarranted. Some do, some don’t.

Personally (no, I’m not a civil servant), I think I put in more hours since I’ve been working from home. Now, they’re not always the normal business hours. I can often be found working on stuff long after what would have been by usual quitting time at the office. Or on the weekend. In compensation I don’t feel bad if I stretch my lunch break by an hour to run an errand or do some cleaning or something. I monitor what’s going on “Teams”.

Really, I think one of the biggest hazards of WFH is not people slacking off, but the complete loss of separation between home and work. I at least have a room dedicated as an actual office, but many people are working from kitchen tables and the like.

#87 Senator Bluto on 08.12.22 at 9:58 am

I’ve just realized that CREA stats and FBI reports on the Trump raid are both designed to be like bikinis.

What they reveal is interesting, but what they conceal is critical.

#88 The Woosh on 08.12.22 at 10:06 am

#67 The Woosh on 08.11.22 at 11:42 pm
#54 Dragonslayer on 08.11.22 at 9:54 pm
Overall I agree with your analysis, Garth, but you did pick the most disadvantageous 5 year block of time in your calculations, the first 5 years. As we know, very little principal gets paid down in that period. If we took the last 5 years, where it’s almost all principal, it might look considerably better for owning v. renting.

Nobody stays more than five years in a 700-foot condo in the suburbs. – Garth

—————————————————

Not everybody buys a 700 foot condo as their first purchase particularly in the burbs. Let’s be real. Many just bite the bullet and purchase a semi-detached or fully detached. In those cases, plenty stay where they are for a long time (if they like their neighbourhood). I really don’t understand why you constantly choose an extreme example to make your point.

Zocassa chose it. Read the damn post. – Garth

——————————————

Don’t worry. I read it. With your reply to the above comment, you’re implying flocks of people buy condos in the burbs to live in them. “Almost” nobody in Oshawa buys a condo to live in…they’re rented out. As for Mississauga, it hasn’t been a suburb since forever. Putting both places together in the same sentence as though they’re comparable, well…

#89 PlentyOFish on 08.12.22 at 10:08 am

@#70 Dazed
÷÷÷÷÷÷÷÷÷÷÷
Omg, you didn’t get banned for saying that?

#90 Quintilian on 08.12.22 at 10:23 am

Memo to Kelowna Realtors:

My field research suggests that real estate sales was something housewives engaged in after the kids were picked up from school and dropped off at home.

Notary Publics were another group that sold real estate as a sideline.

Current research suggests, that RE sales will revert back to a marginal low-income gig.

Real estate sales will not net a good income going forward.
Tick Tock, Tick Tock

#91 Damifino on 08.12.22 at 11:13 am

#75 Balmuto

Which is why in the real world owners have done dramatically better than renters and why renters are upset at the situation.
—————————————

But the ones who really made out like bandits were first owners, then renters.

When one sees price of their home has been speculated into the stratosphere by the irrational exuberance of others it’s time to take that wealth off the table and properly diversify.

That’s the move everyone seems to miss. The chance to perform that trick again isn’t likely to roll around for quite a while.

I acted in 2007 (recreational property) and in 2010 (principal residence). Those gains were were diversified and have maintained me exceedingly well since then.

#92 Is anybody listening? on 08.12.22 at 11:17 am

It’s Over: CDC Says People Exposed To COVID No Longer Need To Quarantine

https://www.zerohedge.com/markets/cdc-says-people-exposed-covid-no-longer-need-quarantine-deemphasizes-regular-testing-except

Now maybe we can hire back the doctors and nurses our hospitals desperately need!

#93 Ponzius Pilatus on 08.12.22 at 11:22 am

#71 Albertistan on 08.12.22 at 12:16 am
#33 Sailaway
Red Deer isn’t considered pheasant country.
Bassano, Patricia, Brooks, Raymond, Magrath, Milk River.
Any of those areas will produce birds.
————————-
Everybody knows that Sailo is not going to hunt pheasants.
He’s going for the elusive “Red Deer”.
Just throwing you of the scent.
A crafty one, this Sailo.

#94 Ponzius Pilatus on 08.12.22 at 11:37 am

#75 and 77
You two are perfect examples why emotions will always trump math when it comes to purchasing a house.
Just look at FURZ.
He’s renting.
Not sure if he’s happy, but he rents and invests his surplus in liquid investments.
If one does that religiously, the renter will always come out on top in the long run.
And the freedom to move easily when the neighborhood goes to shit, PRICELESS.
BTW, I own, and I’ve done ok.
But diversification is always paramount.

#95 Penny Henny on 08.12.22 at 11:50 am

#35 crowdedelevatorfartz on 08.11.22 at 7:44 pm
**
Hey Ponzie!
Seems they found ANOTHER 500 year old goat in Austria?!?!

https://www.nationalgeographic.com/environment/article/500-year-old-goatelope-mummy-found-in-melting-european-glacier
Now you have competition.

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

COTD

#96 Philco on 08.12.22 at 12:03 pm

Unfortunately peeps thought houses were magical money machines.
If you know anything about finance you would know their not.
Over time their a good forced savings plan and an inflation also and a home.
Find out what the cost of building per square ft is the basic 1st step. I got a lot of laughs watch peeps diving into homes no inspection or anything. Good God. I take 2 months to find a good used car.
The only Res RE I own is because 2 penthouse ocean view condos came on top of my office building oh and my house of course. Cash flow is king not granite counter tops.

#97 justinflation on 08.12.22 at 12:53 pm

DELETED (Conspiracy nut)

#98 Wrk.dover on 08.12.22 at 12:54 pm

I was on a road trip, hence late to congratulate you Garth, on the repatriation of the family manse. Good job!

Re: the CGX conversation/hot tip last weekend…

I had a phone conversation with someone barely in my life, but in connection to the purpose of that trip, that is coincidentally on the top of the food chain of information involved with world wide oceanic seismic research and I learned this: it has been a known-known for two years running, massive oil deposits are indeed off shore of Guyana. Venezuela is currently horizontally drilling into them, and when anybody shows up to prepare to extract some oil in Guyana’s waters, the Venezuelan Navy shows up to chase them away.

Stranded asset.

#99 Penny Henny on 08.12.22 at 1:24 pm

#86 justinflation on 08.12.22 at 9:46 am

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

Hey you’re Ace G.

#100 Norland Coboconk on 08.12.22 at 1:36 pm

@Meowth

Coincidentally a former Mayoral candidate for Kawartha Lakes was in the same predicament.
He had his neighbors trespassing on his brother’s cottage land and he got charged for assault. He and his brother also got charged for mischief for videotaping evidence for trial.
I guess when you live in up and coming district’s strange things happen to you.
A house forced sold for $120,000 and valued at ten times that years later.

#101 jess on 08.12.22 at 5:06 pm

“People lie. Get used to it.”
…and then they blame someone else

#102 Prince Polo on 08.13.22 at 8:45 am

Nobody stays more than five years in a 700-foot condo in the suburbs. – Garth

Am I the exception that proves the rule?
D’oh!!!

On the other hand, “substantially below market rent” does have a nice ring to it.

#103 Jurgen Muller on 08.14.22 at 4:12 pm

The youngsters who are overleveraged in condos more than anything mean the fun is just about to begin for them.
https://twitter.com/ManyBeenRinsed/status/1558835512303132675?s=20&t=FXKrKKWhRfzxccTIN7GuEA