Budget, Canada, data, debt, economy, humor, opinion

Is the Globe and Mail trolling you?

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157 Comments

Many Franks pointed out what has to be the most bizarre ‘financial facelift’ feature yet over at the Globe and Mail.

You think you have money troubles? Look at these poor people!

[Eric] earns $200,000 a year working one day a week in a medical clinic. But his real love is teaching, which he does one day a week at a university; this earns him $100,000 a year.

WHAT?!

“It is financially possible for them to do the things that are important to them, although by doing so, they will run a cash flow deficit of $50,000 a year until the children leave home,” Mr. MacKenzie says. Over time, their annual deficits will add up to more than $1-million in additional debt.

WHAT?!

They are living rent free in a relative’s house (they pay taxes, utilities and upkeep) and “regret not having bought a house years ago,” Eric writes in an e-mail.

WHAT?!

Eric and Ilsa are fortunate because their parents are willing to put a home equity line of credit on their own home to extend them the $1-million they need to build, and to finance their annual deficit, the planner notes.

WHAT?!

 

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law

Also with all the cuts to legal aid you never know.

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calcolo mutuo tasso fisso

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Outsourcing

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crikey

Above should have said “About the Triple Package book:”, not “From the Three Traits Book:”

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crikey

spacedOut889 #103 said, “I believe there was a study that found almost all Ph.D and most Master candidates in US are either foreign students or kids of immigrants” The sociological context there is everything. People that find themselves in more challenging environments, where they feel like they are ‘different’, have more to prove than everybody else, and have yet to establish themselves, very often work harder than everybody else. This is why the differences start to disappear in the generations subsequent to the children of immigrants — once the people are settled in, “comfortable”, in the the society they less perceive themselves as standing out or having anything to prove or catch up to. There is also the “superiority complex” factor that many initially have. Everything back in the motherland is better, remember? (After all, their grade 2/3 kids read… Read more »

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Dave

Westside Realtor, I should have put a timeline on my statement and when I posted, my thought was over the next five to ten years. As I posted above, I think our country has gone from a period of stability to a period of uncertainty in a lot of ways over a short period of time. Sometimes those things end up being black swans and cause significant economic damage. A big part of the West of Main market has been foreign money. All these major economic issues have macroeconomic implications so it’s not unreasonable to expect some type of effect on that flow of money. It could very well be that these things inflate the market more. The market just had a 20% haircut on the dollar alone. In my opinion, I think the Chinese buyers mostly want a safe… Read more »

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@#99

#99 Real Oracle Says:
January 21st, 2015 at 9:33 am 99
“More I’m migrants want to move to Canada, not USA.
You can bring you parents, grandparents, and siblings with you. And when here, they can get free healthcare and subsidized education.
Also, you can have vast businesses and bank accounts overseas and the Canadian Gov couldn’t care less.
You can’t get that in the USA.”

RO, better check you facts out. You might get a grace period for late filing initially.

“For the part of the tax year that you WERE a resident of Canada

You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return.
http://www.cra-arc.gc.ca/newcomers/“

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trackback

[…] In the comments section here, Dave asked the question: How much of the BC economy is tied to Oil and Alberta? […]

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CanucksBoy

Good news on the rate cut.

Lets hope Poloz and Co bring it down even more – possibly to Zero.

At least that way the inevitable bubble burst will be more orderly and we may pull of the miraculous soft-landing that no-one predicted.

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Westside Realtor

Dave, west of main is turning to a shit show.

Weak weak weak. There is zero oomph to the bids, and they are also few and far between.

Perhaps the interest rate hike will change that, time will tell.

I maintain my view that the market, including sfh market, is on a downhill slide now.

WSR

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Dave

crabman, I think you are looking at it wrong. I would argue the media is actually being overly negative by even bringing up the stat of Vancouver being the ‘2nd most unaffordable market’. It’s a bullshit stat and is basically meaningless. You can’t take a small segment of the real estate market and then mix it with the average income for the region. Anything West of Main will never make sense when you view the World through this kinds of metrics. If you want to look at affordability, you need to look at the averages or medians. When you do that, our values are not anywhere near the highest in the World. The average condo is affordable to the average person. I’m not going to argue that there is much left to gain because affordability is pretty much at a… Read more »

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Slagathor

…I disagree. More I’m migrants want to move to Canada, not USA. ..

Hmm, you’re either the Mayor, or a complete imbecile. My bet is on imbecile as even the Mayor wouldn’t say anything so utterly moronic (and he sets a really low bar).

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Slagathor

….The dollar at 79 cents means Canadian RE is on sale in the eyes of China. Over 20% off. . …

Oh so those that already bought have lost 20%. That’s a real incentive to buy more.

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Confucius

Most investors go with the trend. It’s been going down, and went down even more today. I see most investors staying away, or even selling. I’m just looking at facts.

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crabman

Just got back into town yesterday after being away for a while. It was nice to be in a city that doesn’t obsess about real estate and thinks low oil prices are a good thing. Anyway, I got home at about 5:30 and Global News started at 5:59, so it only took about 32 minutes for me to be reminded of how disgusting this place has gotten. “More proof Metro Vancouver’s real estate market is increasingly only for the rich.” http://globalnews.ca/news/1784188/record-number-of-vancouver-homes-sell-for-more-than-3-million/ These are a few choice comments from the realtor and his accomplice (aka “reporter”): 1:28 – Accomplice: “and if you think there’s going to be a market correction, don’t hold out. Vancouver is now the second most unaffordable market in the world after Hong Kong. So, $1.75 million for a nice home in a hot neighbourhood is looking pretty… Read more »

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CBC

“Foreign investors just lost 2 percent on their Vancouver house today, after already losing over 20 percent. Boom!”

On the flipside, properties just got 2% cheaper to foreign investment, after an already 20% drop

depends on how u look at the water in the glass

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Slagathor

….Grade 12 curriculum in Canada is about the same as grade 5 in China. hahahaha…..

I think was the OP meant was that the kids in Grade 12 in Canada look to be the same age as the kids in grade 5 in China.

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CBC

My portfolio contains US equities, I didn’t need a salesman blogger to tell me that. You can continue slurping turner and worshipping the toilet he sits on but meanwhile my investments go up along with my “home”

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space889

The rate cut might also have to do with the SNB’s decision to drop their peg. That send a quake through Europe and it was a costly decision. For Canada which is a relatively small open economy with its main export tanking, the rate cut and hopefully lower dollar that will translate into higher exports might be what the economy needs.

If they really really really want people to cut back on debt, raising the interest rate by 25bps a few times would get the desired results in a hurry, or simply require higher monthly minimum principal repayment rates on LOC/CC/etc.

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Confucius

Foreign investors just lost 2 percent on their Vancouver house today, after already losing over 20 percent. Boom!

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space889

@bullwhip29 – I think all recent survey indicate that the average person can’t survive more than a few weeks without a paycheque, not a few months. If everyone has 3 months emergency savings then likely we wouldn’t be in as big a mess as we are in right now.

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space889

@Mortgageslave – funny thing, most young people have debts & health, not assets/income, while most old people have wealth/$$ but not health nor energy. Fun things usually require health and energy. You have your priorities while others have theirs. Some prefer to travel around the world, party it up, take their kids to expensive vacations, perhaps all on debt while they are young. You don’t and that’s fine but you feel the need to really trash others who do. I’m merely pointing out that the consequences of all that debt to have a decade of fun might not be all that bad, especially if you are responsible for a decade and never get to enjoy it. For every person like your uncle who has to bust their ass at 65, there is another one who busted their ass from 20s… Read more »

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Mortgageslave

@CBC – Moron,

If you listened to Garth, sold your place and invested in US equities, you’d be kissing him now. Too bad you’re stuck in an Asset that is going down in value (see jan HPI).

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Mortgageslave

There were already changes to mortgages made last week. They made it so all debts are put into the calculation. It is the same as a rate increase. This rate cut won’t do anything for people getting accepted for higher mortgages.

All the bulls preach is the hope of foreign investors. Even they are stupid enough to invest in this market. Bla, bla bla, same post everytime, right Oracle? First time buyers drive the market and they are priced out, bottom line. HPI is negative, trend has been down for a year and will continue..

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