All these years, while being a member on this board, I have noted one common thing, which prompts me to put forward this question:

At the time of leaving India, what is the household income of a new immigrant? I am told that in most cities in India, leaving aside the 5-6 metros, if you own your house, a family of 3-4 can have a upper middle class life with an average income of 75-100K per month. So do most immigrants make less than that because this site seems to be full of advice to initially live in basements, buy from Walmart and other inexpensive stores, buy cheap (yes cheap, not inexpensive) furniture etc. etc. etc.

I have always thought that once you get used to a life style, you would not, as far as possible, like to make compromises even before you have landed. I can understand that in case one does not find job in Canada within a reasonable time, the mentality of saving on expenses and compromising with quality can come, but why such advice is given even before landing, and to some people (like payal05) when they are coming here with a confirmed job?

So is it because most people who migrate here had household income of less that 50k per month? I have been out of India for 31 years, so do not know much about salary levels, and my relations and friends in India do seem to earn more than Rs.100k per month with more than half of them making at least 25 lakhs per year - (except a few relations and friends who of course make between 1-5 crore a year), and none of them are any Hi Fi people.

So if new immigrants are making around or above 100k pm, why do they go for cheap things from very start?

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Chandresh

Advice is free – lessons I charge for!!

When I left India in 2005, I was making 20k/month. I was single back then. The lifestyle in India was pretty comfortable with own home (ok, Parents'), but careerwise I hit a dead-end. Canada never disappointed me though.

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Originally posted by febpreet

When I left India in 2005, I was making 20k/month. I was single back then. The lifestyle in India was pretty comfortable with own home (ok, Parents'), but careerwise I hit a dead-end. Canada never disappointed me though.

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Chandresh

Advice is free – lessons I charge for!!

I suspect Indians have a deep-seated slave mind. The very presence of white folks around them might make them feel elevated in status and also achieved a great step forward in life. Moreover, imagine the bragging rights they acquire by being in the West!! When they return to India for vacation, they will be showered with enormous respect and pride (?). So a small sacrifice in life-style is probably worth for them. These are impressions I get while talking to emigrants on occasion.

It was a compromised position (not literally ).

For the profession I am in right now, I would say about Rs. 100k/month at least. In addition to it, I have my own home in Delhi and rented a floor for 25k/month. All in all, Rs. 125k/month - totally Upper class life with no Mortgage of any kind. If my wife works, then please add another Rs. 40-50/month.

I think about moving back often, but I don't think my wife would uproot. I am however, all good to go anytime. Good here, equally (or more) cool in Delhi in case I need to go back.

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Originally posted by GlobalIndian

When they return to India for vacation, they will be showered with enormous respect and pride (?).

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Since I am in India currently and came to Canada in 2002, I may be able to explain currently.

Before coming to Canada, I was in Saudi and hence I saved around 4 lakhs out of which 3.6 lakhs I brought to Canada. Exchange rate then was 1 CAD= Rs 33.

Salary levels in India was very low in 2002. Hardly anyone with 6-7 years of experience was earning more than Rs 10,000. An Engineer with Telco might have earned Rs. 15000 and not more than that.
In Chennai, Sq. Ft. rates was like Rs. 550 to Rs.700 (not in posh localities). This is for G+3 apartments.

So naturally, when ones come to Canada, he is coming without a job (not refering to people who come with a job) and also one might have liquidated all his property before coming here and hence when having to make another investment in Canada at Rs 33 for 1 CAD people will think twice.

From 2003, the boom started in India. 2003- 2007 were peak periods when salary went up from Rs. 10,000 to Rs.60,000 (for the same experience). Real estate shot up from Rs. 600 to Rs 6000 (yes. just in those 4 years). My professor's salaries rose from Rs. 12,000 to Rs 75,000 (NIT, Central Govt. job).

From 2008, wages have been stagnant and as well as RE prices.

Moving to your question, it is simple. People liquidate their belonging which they might have saved over a decade or what they might have got as dowry. Now (1 CAD = Rs 55), people hesitate to make a new investment (as a lumpsum) since it will seem as a huge amount to them. Those with jobs might already have converted their potential savings to be sent to India or to be saved. So they will try to buy as cheap as possible.

It took me some 4-5 years to realize that food banks are there to help new immigrants who come here without a job and live in basements. Food banks donot mean that you can eat straight. They will give you raw items which you have to cook to eat. Kijiji is there to help you to buy gently used items at 80% discount. Some will even deliver for free.

Also the Govt. gives subsidies for people to reduce their initial expenses like may be hydro rebate (for low income people) and other benefits.

KFC gives you tuesday special at just $ 3 plus tax.

Murali

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I am a Gents and not a Ladies.