Quote:
Originally Posted by Muta
Where is all this investment money coming from? With an increasing amount of Canadians being priced out of home ownership, is it rich foreign nationals / very wealthy Canadians? How is there so much money out there / the ability to just casually drop six or seven figures each on multiple properties?
Real estate seems to be a game for the 1% in this world, and moreso everyday.
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Here's the short answer: To buy a million-dollar home in Canada, you'll need a yearly income of at least $175,230, as well as a cash down payment of at least $200,000. That's the minimum you'll need in order to qualify for a large enough mortgage.
According to this site, 50% of employees earn over $120,000K in Calgary (Note - These stats seem a bit high but the average Calgary household made $140,000K last year so maybe not?)
http://www.salaryexplorer.com/salary...3324&loctype=3
So really to afford a million dollar home you need one person earning the median salary in Calgary of $120,000K, and one person earning $65,000 (75% of the Calgary population according to above site) in a two income household to afford a million dollar home
Now when you get into 2.2 million dollar homes you probably have a lot of home equity from a boom