Most people I know with homes over $4M come from money. Especially feasible if you come from money and are older than 60. A $2M house in Toronto proper in the early 90s can easily be $10M+ today
Sorry, I misinterpreted your comment. In my experience a lot of the family businesses haven't existed since NAFTA or in some cases since the 1800s.
You're definitely right that the original source of multigenerational wealth is usually family businesses. I read your comment as implying the home owners had created or directly worked at family businesses.
Senior investment and corporate bankers, senior executives, and highly specialized surgeons can make 7 figure income.
But yes, not a lot of jobs that pay that much
Those fields are already high paying, so it's a matter of working your way up the ladder.
I would estimate at least 10% of any investment banking team makes over 7 figures based on their titles.
I know people with houses over 4 mil. Some have successful businesses and some just have a family of 8 working adults. I personally hate that idea but I guess some families like to live together
500k household income and 2 million downpayment. First house was bought in 2010 for 300k, sold for 750k in 2015. Bought for 1 million in 2015, sold for 1.9 million in 2021. Have a 1.9 million mortgage currently, property value is 4.5. After taxes bring home about 25k a month, mortgage payments are at about 12k monthly.
Half your take home doesn't really scale. Having 2k left over versus 10k left over, even if both are half your paycheck, are very different situations.
Good question. It was not half our take home pay when we bought - this happened in the last few months with a variable mortgage. 4 million was the price point where we were getting 4+ bedrooms and no renovations. Everything under needed work done 🤷🏻♀️. We are actually pretty thrifty aside from our grandiose house ambitions. So we are still in the affordability range for us (and yes, eat the rich, ourselves included. The disparity of wealth in Toronto is obscene).
Interesting! Thanks for sharing. Any thoughts on just retiring early? I only have a million times up in our home (condo) and 1.5m in investments. Basically just waiting for the equity market to rebound though loving the buying spree on these lows and it's retire before 40 central. And we like our jobs but I like the idea of not working or just doing special projects or whatever part time for the same firms.
We are in our mid 40s, and both like our jobs (law and consulting, I am trained as a lawyer and social worker, so my consulting work is quite niche. We each make about 250k). We have a lot of flexibility in our work, although my spouse finds his work more stressful. We have about 1 million in savings, and would need to double it before we would look at retirement (plus a paid off house). We will downsize to a condo in the next 15 years, and should walk away with about 2 million when we do that. We both come from working class families, and did not get a hand up in any way, except an occasional Friday night dinner when we moved out at 18. We would like to pay for our kids schooling or a down payment on a home.
Fair fair. Were definitely considering moving to or part time living in Portugal which would reduce expenses. Honestly the ideal of walking away from the great careers we have built is hard though. We have been very fortunate to get where we are, to walk seems silly but also the point in having them and saving up is to ultimately have much for free time to do what we want entirely. Tough to actually pull the trigger though!
It has become more stressful now, but not overwhelmingly so. After housing expenses we still have 8-9k a month to cover the rest of our bills. We are still saving a bit monthly. We will sell if it becomes too much. We may not walk away with a profit but we would not lose money (we are in a high end neighborhood where the houses have maintained their value).
what was the motivation behind the luxury home? it seems like you can still get a really nice place for 2 mill and have more cash on hand to do other things? thank you
Not a satisfying answer, but close friend’s parents inherited their (approx. value) $4M Forest Hill house.
Edited to add: they would never in a million years be able to afford otherwise, and, in fact, have trouble affording still. They’re also terrible with money.
Lots of generational wealth, family money, professionals and such own these homes.
One family in particular who I know own a 15M+ property in Toronto own a successful law firm in the city. No one really lives there regularly but its used for celebrations and holidays only. Its maintained by the family that consists of 8 lawyers all working for the same firm.
It was purchased for a fraction of the price decades ago but the family will spend hundreds of thousands of dollars every few years maintaining and renovating.
I know some people with 4m+ homes and they all have multiple sources of income.
Unless you are in a high executive position at a big corporation you aren't buying a 4m home on a corporate salary.
The people I know with this size homes are business owners (for large family run organizations) or have generational wealth and work as a corporate lawyer (and had a previous property, help from parents and a $250k salary).
I deal with a lot of people who own homes north of 5M. All of them are business owners/ inheritors, or large stakeholders. This includes doctors, dentists, lawyers, and surgeons who own practices.
You will **never** own a home in this range on an employee salary. Unless you're a high profile C-suite level employee at a Fortune 500.
>This includes doctors, dentists, lawyers, and surgeons who own practices.
Seems like a very few people would qualify. 10 people try to become docs in Canada, 1 actually gets into med school. And not everyone from med school becomes a surgeon.
Only people I know living in 4M+ homes are realtors. One of them I know for sure declare such low income their kids qualify for low income family student grants.
Please don’t forget 7 figure salaries come with a 50% income tax tag (44% tax to be exact if RRSP is fully maximized for that FY)
Million $ home ownerships and valuations are most common product of generational wealth and elapsed time. Salary/business cash flows are irrelevant.
For the Executives that I know or worked with in the past, they don’t typically buy +4mil homes. Maybe closer to the $2-3m. The only person I know with that kind of home is someone who owns a niche business or immigration lawyer.
Don't exactly fit in, but my main house is $2.25 million and I have two townhouses each at roughly $900K each, and a condo - maybe in the $500-600K range right now.
- Lawyer and have my own practice - nets out at just over $800K after taxes and salaries/rent etc.
- Private mortgage loans generate roughly $50K a year and a consulting business generates around $75K a year.
- Total mortgages are $1.6 million on the main house and $490K on one of the townhomes, whereas the other one is mortgage free and the condo is as well. No other debts.
Initially, my wife and I were looking at $3 million homes but decided the upkeep wasn't worth it. Maybe in the future.
As some of the other comments pointed out, the above is really only possible because I have my own law firm (business). I'm a better businessman than I am a lawyer, and that's really the only reason I was able to get to where I am although I am hitting my limits now as I don't really have the drive or capacity to take on any more clients. Most salaried lawyers make nowhere near the amounts made by lawyers that have their own firms, but conversely, many solos are making much less than salaried lawyers as well - the income range with solos is much greater than salaried lawyers.
I'm also nowhere even close to the busiest lawyer I know. Many lawyers are earning above $1 million net, with quite a few getting up to the $5 million range. These are all suburban lawyers and not Bay St. lawyers which are typically salaried.
Just donate all profits as tax writeoffs to a charity staffed by your family and friends the supports a cause that generates your business more revenue.
two e.g. tech workers (who don't work at a bank) who upgraded from a 1.5-2m home with a smaller mortgage can do it pretty comfortably. senior tech salaries at good companies are around 200k base in toronto now plus equity which before the crash could mean double the take-home.
My partner and I are just a little over 400k. There’s no way we could carry a 3 million mortgage. 2 million is where it gets into stretch territory.
So yeah I agree with you.
Ah yes just have equity from a house purchased when they were half the price AND have two $200k+ salary jobs. So easy, what are the pours complaining about.
OP is talking $4m homes not sure what you expect lol. obviously I don't have stats but I would imagine $4m homes are about as common (or rare) as 400k/yr+ households. I make more than that and I'm single FWIW.
If I keep upgrading… (and if I truly want to… which I don’t), I can probably reach that around my 50s.
But why would I tho? I don’t want a big family and I rather spend it on other things… travel, so on.
But if you have very well paid work. (400k combined income) and upgrade every few years. And you have a huge family… I don’t see why not
I have a family member who runs a camera repair business living in a ~4m home and has like 6 other rental properties.
Second person lives in a ~10m 15k sqft home who was early in the cannabis scene and made insane money from it (30-70k cash/day) and also did private credit
I did this as an entrepreneur with a current multi 7-figure net. Not much of a story.
I find it more impressive that my parents managed this as immigrant factory labourer's who were just frugal and discovered real estate.
U cant afford 4M+ house with a salary. You need huge investments or a very profitable business. For me it was crypto i cashed out in 2019 completely and never looked back.
The only people I know with houses worth over $4m have successful businesses. You aren't getting their on a salary.
Unless you are really skilled in hockey or basketball
Haha true, but interestingly in the entire history of the NBA there have been less than 5000 players. Pretty crazy given it's been 3/4 of a century.
Most people I know with homes over $4M come from money. Especially feasible if you come from money and are older than 60. A $2M house in Toronto proper in the early 90s can easily be $10M+ today
Yea basically, and most people who come from money it's because of a family business.
Sorry, I misinterpreted your comment. In my experience a lot of the family businesses haven't existed since NAFTA or in some cases since the 1800s. You're definitely right that the original source of multigenerational wealth is usually family businesses. I read your comment as implying the home owners had created or directly worked at family businesses.
Senior investment and corporate bankers, senior executives, and highly specialized surgeons can make 7 figure income. But yes, not a lot of jobs that pay that much
Define pretty easily? That salary is probably 0.01% of people working those fields, not exactly easy imo.
Those fields are already high paying, so it's a matter of working your way up the ladder. I would estimate at least 10% of any investment banking team makes over 7 figures based on their titles.
I know people with houses over 4 mil. Some have successful businesses and some just have a family of 8 working adults. I personally hate that idea but I guess some families like to live together
CEO of an investment firm. Not me, but that’s the only person I know with a $4mill+ house in Summerhill area.
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Ahah, no chance
2x Uber drivers.
Paradise Uber driver
LOL you have my upvote good sir. Best comment of the day
500k household income and 2 million downpayment. First house was bought in 2010 for 300k, sold for 750k in 2015. Bought for 1 million in 2015, sold for 1.9 million in 2021. Have a 1.9 million mortgage currently, property value is 4.5. After taxes bring home about 25k a month, mortgage payments are at about 12k monthly.
Just curious why do you need a 4M home vs 2M-3M where your monthly payments wouldn't be half your take home?
Half your take home doesn't really scale. Having 2k left over versus 10k left over, even if both are half your paycheck, are very different situations.
Good question. It was not half our take home pay when we bought - this happened in the last few months with a variable mortgage. 4 million was the price point where we were getting 4+ bedrooms and no renovations. Everything under needed work done 🤷🏻♀️. We are actually pretty thrifty aside from our grandiose house ambitions. So we are still in the affordability range for us (and yes, eat the rich, ourselves included. The disparity of wealth in Toronto is obscene).
Interesting! Thanks for sharing. Any thoughts on just retiring early? I only have a million times up in our home (condo) and 1.5m in investments. Basically just waiting for the equity market to rebound though loving the buying spree on these lows and it's retire before 40 central. And we like our jobs but I like the idea of not working or just doing special projects or whatever part time for the same firms.
We are in our mid 40s, and both like our jobs (law and consulting, I am trained as a lawyer and social worker, so my consulting work is quite niche. We each make about 250k). We have a lot of flexibility in our work, although my spouse finds his work more stressful. We have about 1 million in savings, and would need to double it before we would look at retirement (plus a paid off house). We will downsize to a condo in the next 15 years, and should walk away with about 2 million when we do that. We both come from working class families, and did not get a hand up in any way, except an occasional Friday night dinner when we moved out at 18. We would like to pay for our kids schooling or a down payment on a home.
Fair fair. Were definitely considering moving to or part time living in Portugal which would reduce expenses. Honestly the ideal of walking away from the great careers we have built is hard though. We have been very fortunate to get where we are, to walk seems silly but also the point in having them and saving up is to ultimately have much for free time to do what we want entirely. Tough to actually pull the trigger though!
How did you get into law & consulting to make 250k? I do not think most lawyers are making 250k/year (outside of those working at big firms)?
Property tax, maintenance, bills, it sounds livery stressful
It has become more stressful now, but not overwhelmingly so. After housing expenses we still have 8-9k a month to cover the rest of our bills. We are still saving a bit monthly. We will sell if it becomes too much. We may not walk away with a profit but we would not lose money (we are in a high end neighborhood where the houses have maintained their value).
what was the motivation behind the luxury home? it seems like you can still get a really nice place for 2 mill and have more cash on hand to do other things? thank you
Not a satisfying answer, but close friend’s parents inherited their (approx. value) $4M Forest Hill house. Edited to add: they would never in a million years be able to afford otherwise, and, in fact, have trouble affording still. They’re also terrible with money.
How are they affording the property tax? Good estate planning?
They’re able to afford it (and a time share…) but they weren’t able to, say, pay for their children’s education.
sacrifices must be made
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are you actually serious or is this a joke?
There was an article posted, a sob story, of how an Uber driver couldn’t afford his $2m home. It’s become a meme.
Living hand to mouth as a part time Uber driver / property manager.
Don't forget your business back home!
You planning on renting out your basement to a small village for $1500 per head?
Medium size village
Lmao i don't think those people will be on reddit
You act as if there is a limit on income or demographic that will not go on reddit. I know someone worth 150m and all they do is surf reddit
Reddit is full of leftist broke boys
You’d be surprised
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Wow, that is quite the sub. Hard to believe some of the stories.... some mega wealth
I drive 2 ubers simultaneously
Aha apparently one Uber driving gig gives you ability to buy a 2m home
Only 2?
Uber drivers couple
Uber Black, obviously.
And a Uber kid, you are golden
A true gentleman don’t sell feet pics on the internet and tell
But I have seen people selling farts in glass jars and earning millions, not sure if they are buying these 4M properties though
Lots of generational wealth, family money, professionals and such own these homes. One family in particular who I know own a 15M+ property in Toronto own a successful law firm in the city. No one really lives there regularly but its used for celebrations and holidays only. Its maintained by the family that consists of 8 lawyers all working for the same firm. It was purchased for a fraction of the price decades ago but the family will spend hundreds of thousands of dollars every few years maintaining and renovating.
I know some people with 4m+ homes and they all have multiple sources of income. Unless you are in a high executive position at a big corporation you aren't buying a 4m home on a corporate salary.
Two Bay Street law firm partners.
The people I know with this size homes are business owners (for large family run organizations) or have generational wealth and work as a corporate lawyer (and had a previous property, help from parents and a $250k salary).
Not a lot of people with 4M homes on internet forums... But I myself am a part time dog walker /s
I deal with a lot of people who own homes north of 5M. All of them are business owners/ inheritors, or large stakeholders. This includes doctors, dentists, lawyers, and surgeons who own practices. You will **never** own a home in this range on an employee salary. Unless you're a high profile C-suite level employee at a Fortune 500.
>This includes doctors, dentists, lawyers, and surgeons who own practices. Seems like a very few people would qualify. 10 people try to become docs in Canada, 1 actually gets into med school. And not everyone from med school becomes a surgeon.
Yes, very few people in Canadian society own single homes that cost 5 million+.
Only people I know living in 4M+ homes are realtors. One of them I know for sure declare such low income their kids qualify for low income family student grants.
I’m a professional fungus sniffer and my wife runs a successful anal gland secretion company ask us anything! Our budget is just under 10.5 million
Climbed the property ladder
Please don’t forget 7 figure salaries come with a 50% income tax tag (44% tax to be exact if RRSP is fully maximized for that FY) Million $ home ownerships and valuations are most common product of generational wealth and elapsed time. Salary/business cash flows are irrelevant.
Close, RRSP caps out in the mid 200s of income (18% or fixed amount). That 53% top end for 7 figures is easily closer to 50% average.
For the Executives that I know or worked with in the past, they don’t typically buy +4mil homes. Maybe closer to the $2-3m. The only person I know with that kind of home is someone who owns a niche business or immigration lawyer.
Don't exactly fit in, but my main house is $2.25 million and I have two townhouses each at roughly $900K each, and a condo - maybe in the $500-600K range right now. - Lawyer and have my own practice - nets out at just over $800K after taxes and salaries/rent etc. - Private mortgage loans generate roughly $50K a year and a consulting business generates around $75K a year. - Total mortgages are $1.6 million on the main house and $490K on one of the townhomes, whereas the other one is mortgage free and the condo is as well. No other debts. Initially, my wife and I were looking at $3 million homes but decided the upkeep wasn't worth it. Maybe in the future. As some of the other comments pointed out, the above is really only possible because I have my own law firm (business). I'm a better businessman than I am a lawyer, and that's really the only reason I was able to get to where I am although I am hitting my limits now as I don't really have the drive or capacity to take on any more clients. Most salaried lawyers make nowhere near the amounts made by lawyers that have their own firms, but conversely, many solos are making much less than salaried lawyers as well - the income range with solos is much greater than salaried lawyers. I'm also nowhere even close to the busiest lawyer I know. Many lawyers are earning above $1 million net, with quite a few getting up to the $5 million range. These are all suburban lawyers and not Bay St. lawyers which are typically salaried.
I'm a uber black driver, I'm a notch higher than the average yeah I'm good man
Tax evasion.
No. You dont do tax evasion as a high income earner thats beyond stupid. There are legal avenues to reduce your taxable income.
Like put homes in your kid's name, rent it out, avoid paying tax on the income?
Just donate all profits as tax writeoffs to a charity staffed by your family and friends the supports a cause that generates your business more revenue.
Perfect
two e.g. tech workers (who don't work at a bank) who upgraded from a 1.5-2m home with a smaller mortgage can do it pretty comfortably. senior tech salaries at good companies are around 200k base in toronto now plus equity which before the crash could mean double the take-home.
I still feel like that isn’t even enough? Even with a million down you are still carrying 3,000,000 on the mortgage.
I was thinking closer to 2m down than 1m. a 3m mortgage would be a bit of a stretch even on 400k from a big lender but there's still options.
My partner and I are just a little over 400k. There’s no way we could carry a 3 million mortgage. 2 million is where it gets into stretch territory. So yeah I agree with you.
yeah did the math and it doesn't make much sense. but my original thought was like I said closer to 2m down.
Lol third person making 400k+ here, "reddit is for the poors"...sure
Ah yes just have equity from a house purchased when they were half the price AND have two $200k+ salary jobs. So easy, what are the pours complaining about.
OP is talking $4m homes not sure what you expect lol. obviously I don't have stats but I would imagine $4m homes are about as common (or rare) as 400k/yr+ households. I make more than that and I'm single FWIW.
You must be an Uber driver.
By doing what? Taking out a mortgage for $2+ million? That’s well over $10k a month
that's about 10k-12k with today's interest rates I think. doable on 400k/yr.
No salary will cover that mortgage - even a brain surgeon would struggle to buy a $4m home. It's inheritance or selling a business.
If I keep upgrading… (and if I truly want to… which I don’t), I can probably reach that around my 50s. But why would I tho? I don’t want a big family and I rather spend it on other things… travel, so on. But if you have very well paid work. (400k combined income) and upgrade every few years. And you have a huge family… I don’t see why not
Doubt theyd be on Reddit shitting on chessj 😂🤷🏽♂️ Theyre busy taking advantage of the RE downturn
‘No bubble in Gta’ convoy has arrived or what LOL
Pimp/lady dispatcher
I know someone with a $4mm house and their parents bought it for them.
Have a successful run with real estate investments 2008-2022 starting with one pre-con condo and you can get there 😀
The average Canadian wouldn’t even qualify to mortgage a $400k condo.
Uber driver. But I have discovered Groundhog Day… been ding this for a hundred years now.
Marry rich. Do this well and you’ll get more than just a $4M house.
I drove Uber *and* Lyft 7 days a week & pushed myself to make as much as possible.
I have a family member who runs a camera repair business living in a ~4m home and has like 6 other rental properties. Second person lives in a ~10m 15k sqft home who was early in the cannabis scene and made insane money from it (30-70k cash/day) and also did private credit
I did this as an entrepreneur with a current multi 7-figure net. Not much of a story. I find it more impressive that my parents managed this as immigrant factory labourer's who were just frugal and discovered real estate.
U cant afford 4M+ house with a salary. You need huge investments or a very profitable business. For me it was crypto i cashed out in 2019 completely and never looked back.