Quote:
Originally Posted by blankall
This has a lot to do with the way our tax system is set up and the vast property value gains between 1970 and now.
You can earn $200k, and might pay $80k in taxes/deductions. Meanwhile someone with an established business can run a private corp and earn $200k but only pay $30k in taxes/deductions.
If your talking about building wealth, a house purchased in 1985 for $40k that is now worth $800k (or 1.5 million in Vancouver) is a much easier way to build wealth than to try and save off your $120k net salary.
So back to your point, I wouldn't call young professionals earning a large income wealth, and it's very difficult for them to become wealthy.
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Well said. This is my point for people who didn't choose to take my original post too literally. The ongoing disconnect for young professionals earning high salaries in this city but balking at 950K+ mortgages is a real problem. We have equity, but not enough to actually jump up to a townhouse - we could probably do a two bedroom but ... why at this point?