I really have no idea where people are getting the money. When you consider that the mortgage should be maxed out at 30-33%, very few households should be qualifying for million dollar homes. I get that some are moving up and hence whatever they sell will sell for a high price, but still, considering the average wage in Canada is what, 50k, and household is maybe just a bit more than that... where is the money coming from? Even if a couple making 60k each, and hence 120k combined, the most they should be able to afford is some starter condo for 500k. There must be lots of rich people out there.
Many of my friends have parents that own their own home (its completely paid for)...homes that their elderly parents still live in since paying off the home in the 80s or 90s. That's a lot of wealth in the elderly community that's starting to be pass down to the kids (now adults).
That's where the money is coming from because I see a lot of 30 to 50 years old folks buying these 500k - 1million dollar homes and I too wonder where they're getting the money from on their
average salaries.
My friends have stated its money given to them or inherited from their parents.
Simply, there's a lot of
rich elderly in Canada (at least here in Quebec). For example, when I arrived in Canada, the first thing I notice that was odd was a lot of my friends had
parents with more than one property...most had 2nd or 3rd homes elsewhere such as a home on a lake, condo at a ski resort, home in some tourist community or whatever...all paid off.
I've seen this before in the U.S. (suburbs of Chicago)...that old money...rich money from many wealthy property owners that are now elderly...passing the money down to the kids (now adults).
Its nothing to be ashamed of...just lucky to be in that situation.
One of my best friend's, his parents bought a 30k home in the late 60s while in their late 20's years old. Paid off the home in the late 80s and sold the home last year for +600k. Now the parents are moving into a retirement condo complex after giving him about +400k...they will spend their remainder retirement years living off their investments and pensions.
Guess what, he's now looking to move out of his apartment into a +600k home and he's a manager at a small retail grocery store making about 35k per year.
