How do the economics of this city work?

I make ~150K & get 8K per month net.

Assuming I have 3K rent + 1K for (car + insurance) + 1K for (grocery + utilities + misc expenses), I’m left with 3K/month saving which is 36K/yr.

If I decide to buy a 1M house/townhouse/apartment, I’ll need to put down 200K deposit which will take ~5-6 years - IS THIS NORMAL?

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I’m assuming you’re single; 3K rent is pretty high, and not sure why you need 1K for monthly car payments, especially since you’re living in the city. You’re talking about economics, so you’re making certain choices that make it longer to get a house through a 3K monthly rent and 1K car.

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Easy, the economics don’t work…..specially for real estate purchase. Toronto is one of the most unaffordable cities in the world

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100%.
OP you seem very light on your misc. expense category and retirement is missing as well

Normal in the sense that this is the market. Not normal in any other sense tho. Toronto and Vancouver are undeniably absolutely unaffordable for newcomers that aren't wealthy.

Most home owners in Toronto would never be able to afford the homes they live in today, if they were buying them today. It's an absolutely fucked up market.

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It's undeniably so horribly broken for anyone who didn't/ couldn't afford to buy before 2016

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I guess this is normal for any full time employee,But
In order to save more getting incorporated is the best option. Where you will paying less taxes, it sums upto 13-17% p.a. Which is great.
But again it has some negatives banks don’t take incorporated employees seriously, getting loans is a task.

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Lol a PSB tax rate is over 60%

The economics work for people who have lived here longer. If you grew up here then likely your parents own a home and you're fine. For new immigrants though it definitely sucks. I don't know why people would choose to immigrate to Toronto over Calgary

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I think that argument is very industry dependent. Calgary has a higher average income than Toronto. There is definitely jobs there if you are willing to change industries.

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I’ve NOT accounted for discretionary spending on vacation / travel to India / starting a family or childcare / emergency spend / getting furniture etc.

Also since, the marginal tax rate is so high, any increase in salary doesn’t trickle down a lot to me. There’s an upper bound on salaries in Canadian market. So my earning potential isn’t going to significantly change in the future - at best will be a slow linear growth.

For some context, I’ve 7 years of work-ex and the income / expenses ratio is pathetic.

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Agreed. Similar boat/bracket. Painful. Need dual income to get by.

helpful

Easy. Choose a different city to live in. Toronto and Vancouver are the worst for this.

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P1 exactly! Are you from the Firm?

Also many people are doing joint ventures with partners, family or friends when it comes to purchasing property due to the amount required for a down payment, or to qualify for enough.

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Didn’t you post the exact same question and get 50 replies in the Toronto Consulting bowl?

Check your net income math - you should be closer to $8.5k each month, but I understand that will depend on the payroll deductions you have.

Are you eligible to get any RRSP or Pension matching from your employer? If so, are you maximizing that? You should also look into the potentially new FHSA.

I was in the same boat as you OP. Same income and expenses..i ended up buying a pre construction house with a reputed builder and it helped me own a home in couple years. And now my mortgage is less than my rent so it worked out great for me.

You move to US.

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