Extra Guac

Investor, researcher, and aspiring spin class instructor. "The only thing we learn from history is that we learn nothing."

[Extra Guac @ExtraGuac4Me]

$EQB $HCG

[Extra Guac @ExtraGuac4Me]

In the end, despite increased immigration to Canada with more people moving to the Toronto area and a substantial reduction in interest rates, prices fell 25% with many condos facing 35%+ declines.

The more you know. 4/4

[Extra Guac @ExtraGuac4Me]

Before dismissing CMHC’s report, consider this: in 1989, pre-recession, Wood Gundy suggested Toronto home prices would drop by 25%. TREB called the report “inflammatory” & OREA stated “a large price decline is unlikely because the real-estate market doesn’t work like that”. 1/4

[Extra Guac @ExtraGuac4Me]

And no, immigration did not fall in 1989. It went from about 191k in 1989 to 256k by 1993. Also, more immigrants chose major city centres in the 1990s compared to the 1980s.

Yes, more immigrants came to Canada and even more went to the Toronto area. 3/4

[Extra Guac @ExtraGuac4Me]

GTA homeowners lose two homes after defaulting on a 6 month $1MM loan from private lender at an astounding 23% interest rate (12% + fees). Court reluctantly enforces significant 5% default fee.

Makes one wonder how many GTA private mortgages are currently underwater.

[Extra Guac @ExtraGuac4Me]

Toronto tenant sued condo board & board warned the owner/LL that its legal costs would be sought against her if the lawsuit proceeded. Warning ignored. Lawsuit proceeds, fails & board sought its costs of $86k. LL failed to pay and now will lose her condo in a forced sale. #tore

[Extra Guac @ExtraGuac4Me]

Buyer agreed to purchase newbuild home in Markham for $1.7MM and put $140k down. Paid the sales agent a “bribe” to get ahead of the line. Buyer failed to close. Home now worth just $1.050MM. Buyer ordered to pay the builder $554,308.41 in damages. #tore

[Joseph Noel Walker @JosephNWalker]

The logic is inevitable. Credit is as much a feature of housing bubbles as the moon is of nighttime.

To sustain price rises, underwriting standards are relaxed. Few know this better than @John_Hempton.

The penultimate ep. of #housingbubbleweek!

iTunes: https://t.co/OulGrB6tEo

[Extra Guac @ExtraGuac4Me]

@LandlordRescue @cryptomarkets2 @ScottTerrioHMA @teeveesociety

[Extra Guac @ExtraGuac4Me]

If there were only signs of excess somewhere…

[Extra Guac @ExtraGuac4Me]

Victoria, BC, condo buyer failed to close on purchase as financing could not be obtained. Buyer forfeited $50k deposit and ordered to pay an additional $195k in damages + the seller's legal fees. Over $250k vaporized. #vanre

[Extra Guac @ExtraGuac4Me]

@StephenPunwasi @cryptomarkets2 @jhwfung @416_Perp @hmacbe @SteveSaretsky @catosletters @FIVRE604 @xelan_gta @HaakonPedersen "The final phase is a self-feeding panic, where the bubble bursts. People of wealth and credit scramble to unload whatever they have bought at greater and greater losses, and cash becomes king"

- Econophysics Approaches to Large-Scale Business Data and Financial Crisis

[Extra Guac @ExtraGuac4Me]

Sketchy mortgage lender served Notice of Sale on GTA borrower just 1 day after the mortgage matured. Court called the lender “aggressive, perhaps abusive” for its coercive behavior & illegal fees

15% of the GTA mortgage market is run by alternative lenders. They show no mercy

[Extra Guac @ExtraGuac4Me]

@catosletters It might be connected to "Tier 1 Investors" owned by Bhaktraj (Raj) Singh who is cited as running the syndicate. If so, at least $110 million of investors’ money.

"It seemed like a guaranteed thing" – said one investor.

https://t.co/05Ucoz0yl9

[Extra Guac @ExtraGuac4Me]

Ontario Provincial Police investigating suspicious, possibly fraudulent syndicated mortgage scheme. Usual red flags: money raised and projects not completed, conflicts of interest, investors misled, and no independent legal advice.

Better late than never?

[Extra Guac @ExtraGuac4Me]

Toronto homeowner with 3 mortgages and 146 unpaid parking tickets totalling $12,369.50, loses bid to have his 2017 property taxes reduced. The purchase of $500 sneakers and bank deposits from unknown sources did not help his case.

https://t.co/JxD5eoUpZR

[Extra Guac @ExtraGuac4Me]

@paranoidbull @MaxFWolff An eerie case of déjà vu from the 1990’s dotcom mania.

[Extra Guac @ExtraGuac4Me]

Toronto real-estate investor bungles purchase of $3.2MM home in the Annex, defaults on VTB mortgage, and loses possession of property. On a side note, buyer alleged that the seller’s real-estate agent was a “dual agent” and created a fictious bidding war.

[Extra Guac @ExtraGuac4Me]

@SteveSaretsky "It is still a buyer's market - we just need more buyers"

- Tom Campensa, president of the Akron Area Board of Realtors, July 2007

[Extra Guac @ExtraGuac4Me]

@StephenPunwasi @hmacbe @REWoman @catosletters @xelan_gta @416_Perp @HaakonPedersen “Toronto is a world class city and if you think there will be a major correction because price gains have been excessive in relation to income growth, you will be disappointed” – CIBC in 1990