Real Estate Supply is not the Problem, Demand Is: The "Foreigners - Buy Here" Sign has Been Up For Years

I would not normally quote the following source as "news"; however, it did outline clearly the significance of what is still coming to Toronto in an over zealous Canadian real estate market.  While two new skyscrapers are planned to be taller than that ivory tower of commerce, finance and a Bay Street mecca – First Canadian Place.  Think about that!

http://dailyhive.com/toronto/toronto-skyscrapers-future-skyline-2017

Although the benefits are seeing areas like Gerrard/Yonge with a facelift (yes, where you used to buy your "Big Slice"), it shows that despite Canadian buyers trying to purchase in Canadian dollars is a mug's game as we are in direct competition with billions of other real estate purchasers world wide who think and manage their wealth in US$ (which will continue to strengthen versus our Canadian dollar thanks to, oh say, i) Liberal deficits that are multiples of what they were forecast to be, ii) no plan to pay these deficits down within decades, iii) unemployment at 7% and iv) GDP hovering at or below 2.0%).  They are trying to move large sums of funds (millions), they are motivated purchasers, and are willing to outbid for that.  In summary, such purchasers salivate when they see the development continuing in cities such as Vancouver and Toronto due to the “discount” as the Canadian dollar is approximately 75% of a US$, the rule of law in Canada and the fact that Federal, Provincial or Municipal governments will NEVER react in a direct, firm and fair way for Canadians otherwise facing that term WITH NO CONSEQUENCES ATTACHED (whether right or wrong) by its constituents AND the media… the “R” word (“racist”).

In other words, CANADA AND CANADIANS HAVE IMPORTED THEIR OWN REAL ESTATE INFLATION, and now there is no stopping it until: i) interest rates increase (LOL, sometimes I crack myself up – see reasons above), or ii) there is a better place for foreigners/potential permanent residents to purchase.   Neither of which are happening.

In Australia, there are restrictions to combat such circumstances.  This requires foreign purchasers to buy “new” construction, not a resale, thus fostering jobs in the construction industry, and yes more supply which according to Economics 101 takes care of real estate pricing shocks as theoretically there should be no shortage .

Although Canada is part of the FinTRAC system (from the government web site, "The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit (FIU). The Centre assists in the detection, prevention and deterrence of money laundering and the financing of terrorist activities. FINTRAC's financial intelligence and compliance functions are a unique contribution to the safety of Canadians and the protection of the integrity of Canada's financial system.), this system has very little restrictions in stopping the movement of capital into Canada nevermind enforcement.  In the meantime, as Canadians we just have to accept that every dollar (Canadian$ or US$) is legitimate and well-earned, and only used for purposes of real estate as a place to live or to earn a capital gain in already over-heated market (that is, fuel to a fire).  And that every real estate agent dealing with a foreign buyer is screening them appropriately, and the banks are doing their due diligence…as per the law as well as the codes and integrity of their industries. 

No wonder the real estate agents and the real estate industry wants to keep this foreign data to themselves, and the significance of it.  What if a different truth was known and (naïve) Canadians actually woke up one day to what is happening behind the scenes (Exhibit A, around this time last year, the Globe and Mail blew the doors open on a story involving the Vancouver real estate market where real estate agents were assigning purchase and sale contracts, picking up tens of thousands in fees along the way, resulting in an unknown buyer showing up at the closing of the unsuspecting seller). 

On another note, CIBC has announced it will move into two brand new office towers, the first move for one of the big banks that have been residing in their respective office towers on Bay Street for decades.  Despite this refreshing move, when commercial towers are constructed and the doors open, usually that happens just in time for a….you guessed it, a market crash. 

"Sunny (and Stoned) Ways": Marijuana Legalized so let the Canadian Flag Be Ridiculed

Well it is official.  Although earlier than the uber tongue-in-cheek date of April 20th (4/20...Ricky's number on the back of his Sunnyvale hockey shirt) and three days after the adjusted April 10th date (maybe someone in the Liberal party read this blog and realized, "oh ya, one day after the 100th anniversary of 3,598 Canadian soldiers killed in one of the most defining moments of Canada's nation building history, maybe we should not release this marijuana legalization right after it"), the news is out.

It is enough to make Liberal marijuana smoking voters happy heading into this Christian-based holiday of Easter, which happens to render the weekend a long weekend (maybe it should have been introduced Thanksgiving long weekend for more of an impact....turkey and THC).

In any event, the flag-toting yahoos will be at the ready with their desecrated Canadian flags, altered for a cannabis leaf.  Merely days after a solemn and significant event for Canada, the Liberals are now changing Canada Day from a day of thanks, history, celebration, patriotism, honour and loyalty but to a day remembered for legalization of a selfish habit. Sad, very sad.

Makes you wander who in the Liberal party was smoking what.

Canadian Teams in the Stanley Cup Playoffs: Who will Go the Farthest?

So far, 0 for 5 in a rare year where 71% of the Canadian teams have made it to the playoffs AND are not playing each other in the first round.  With exception of the tri-coleur, the losses were one by goal, with all teams showing a valiant effort.

While the Leafs could have stole one out of the hands of the NHL's top team on their home Hi Heather. Received your flyer on 30 Philpot. What did it sell for and what was the asking price?   (according to your flyer, above asking ) .

Out of the West, we would all like to see McDavid continue on in successive rounds, while I am also gunning for a pesky, upset series win from Calgary. Writing from Toronto, I will have to reserve comments of the Eastern counterparts, only to say that my annual hope for an "All Canadian Stanley Cup Final" does arrive.

As such, will throw on my two cents on dividend paying stocks - yes, The Keg (KEG.un) and Boston Pizza (BPF.un). As these are national chains, and with most Canadian teams in the playoffs these have had some seasonality to them as I've been watching every playoffs since I've been a shareholder in each. Paying 5.4% to 6%, these should be part of any portfolio. 

And if the Canadian teams advance further, keep an eye out for "Second Quarter 2017 Results" for these companies as most bars in the country will be expecting increased business (especially here in Toronto with patio season approaching).

Sorry Vancouver, but you have your Stanley cup already...Justin's marijuana legalization.

DROP THE PUCK!

Well, At Least He (The Justin) Has Nice Hair: No Commentary Needed on This Latest Display of High School Drama Teacher Prime Minister

http://www.cbc.ca/beta/news/trudeau-searches-for-word-to-describe-north-korea-1.4063644

Canada's 150th: A New $10 Bill...Will Terry Fox Be Remembered Among Everything Sesquicentennial?

As usual, one important yet humble Canadian was overlooked, no matter whether man or woman, Anglophone or Francophone, from the east or the west. The efforts of this individual were heroic, super human and were beyond any sense of drive and spirit.

One of the greatest Canadians, if not THEE greatest Canadian - Terry Fox. If we already have the "Loon", I think the "Fox" would make a great piece of currency too.

(At least they kept Sir John A. on there)

http://www.cbc.ca/news/politics/bank-of-canada-unveils-new-10-banknote-for-canada-150-celebrations-1.4060501

Bank of Canada unveils new $10 banknote for Canada 150 celebrations

The Bank of Canada has unveiled a new $10 banknote to commemorate the 150th anniversary of Confederation.

CBC.CA

Internal Trade Agreement Rolled Out to Remove Domestic Trade Barriers Across Canada

What's that I hear? The sound of no one cares.

In spirit of the Federal government's efforts, finally a governing party has tackled these arcane laws between provinces and territories. If you remember the early days of Alexander Keith's beer first arriving in Ontario, their advertising slogan was "Imported from Nova Scotia". How fitting.

Before Canadians uncork the maple sparking wine (oh wait, that's only made in...), there are so many exemptions that most likely you will not see a half decent Okanagan wine in a LCBO (Ontario Liquor Store).

Perhaps just another distraction to lead the media down another path and refrain from writing negatively about our governing party (it was easy pickings lately!).

On another note, MP Navdeep Bains, could you please tell me what a Minister of Innovation does anyway?

And in other news, Maryam Monsef is still a fraudulent Canadian and MP.

Cracks in Liberal Foreign Policy (or Lack Thereof) Beginning to Show: Our Fearless Boy Scout Leader Claims it is Still Unknown Whom or What is the Perpetrator

After a swift move demonstrating the US military might by President Trump in the early days of his term, our Liberal party after claiming it was unknown the forces behind the latest vicious attack on the people of Syria sheepishly sides with the actions of their "closest ally".  Rather than debate further Hornets versus CF-18s, or contemplate the benefits of "diplomatic efforts", the Liberals had to speak from a text that probably made them throw up in their mouths a bit - the Liberals were forced to side with the unilateral actions of a contentious US President, albeit in fine Liberal style (calling the actions "limited and focused").

Straight faced and without any consequences whatsoever of his empty words, The Justin vowed that Canada, along with the United Nations process, would investigate and punish the perpetrators.

And that's your "sunny ways" foreign policy.