Quote:
Originally Posted by JDMDreams
Yea cuz I think this will create a new gen of old money rich from parents owning land. As the current prices already realistically can't be supported by income. Most young people can't even afford the mortgage for a 1 bed, at $600k if you have 20% down. Same with rentals, there's no way you will break even with the rent collected. Unless rent goes up like 20 30%.
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Take this with a grain of salt, as I don't believe the numbers either, but there's probably at least some truth in it.
My parents are in the restaurant industry. She was telling me I don't actually make that much (Asian parents lol, you aren't good enough!) and with the long hours they work + tips, a lot of people break 100k take home easily. Keep in mind take home != actually taxed income because tips are a lot of time cash.
She told me her friend was taking home 7k a month but chose to spend it all on frivolous stuff instead of putting the money towards a home, and they have no retirement plans and no plans to help their son who is just entering post secondary. The 7k is the mom's single income and the husband has another income as well and with both of them in the restaurant industry, even fudging the numbers a bit, I would say they can bring home 10k a month.
10k a month dual income, if taxed properly, is ~160k income a month(spitballing, not even napkin math). So that means there are lots of "high earning" and hidden households out there that can 100% afford that 800k 2bdrm and choose not to. It's not even foreign money, just untracked income.