As we hold our breath this morning to find out if we are in or out of the EU and all the ramifications that this will have on the UK and the world I am very glad that I am doing what I am doing. It would appear in this time of uncertainty in the UK that now is as good a time as any to be considering looking to generate your income from overseas and looking perhaps for a move to a new home.
This doesn’t include the commercial property angle but rather properties to actually live in. I know one of the reasons for getting out of the UK was how expensive renting in the UK has become. But It’s interesting also to see how expensive some places can really be and if you’re looking for luxury what you can get out there at the moment.
Luxury you say, hell yeah
I have not purposely gone into too much detail about the places as that if for another blog. It appears that most of the results come from a study based on the Global Studies Business Alliance (GCBA) that look at how much it costs to rent as a portion of net earnings.
Seems to be the surprise leader at the moment, with rent completely outstripping incomes. At a rate of 122.9%. Rapid growth in China and low salaries has meant workers having longer commutes due to moving out of the city to find affordable accommodation. In some extreme cases reported workers are living underground or at their place of work.
2. Abhu Dabi
The jewel of the middle east is next. 69.5% is quite a drop from China as the income to rental price gap decreases dramatically.
3. Hong Kong
Hong Kong has been a reliable old favourite in the “most expensive places to live in the world list” for some time now. Just below Abhu Dhabi at 65%.
4. New York
Again another favourite of many and consistently up there for the US. Just below Hong Kong at 63.1%
I wonder if this is slightly skewed to the financial district in Pudong but surprising far down the list from Beijing is Shanghai. Maybe workers here have higher incomes than in Beijing. 58.3%.
According to the study by GCBA Mexico City has on average the longest commute in the world. At 113 minutes that’s a long time to have your head in another man’s armpit. But interestingly Mexico City also has the cheapest rent in the list at an average of $385 per month. This has increased incredibly by 44% since 2009. But it looks like earnings are not increasing with the growth of the city at quite the same rate as their rent to earnings ratio stands at 58%.
Seems to have gone down the pecking order as the rise of Abhu Dabi has occurred. But still pretty pricey at 55.4%.
8. San Francisco
Always has been seen as one of the most expensive places to rent in the US. At 50.5% that’s still quite high.
Given what’s happening today in the UK this may have an effect on what happens to property in London and elsewhere in the UK. But we may not see that straight away. However, sitting just behind San Francisco they were at 50.4%
Last but not least is Paris, probably now leading the EU most expensive countries to rent in at 36.2%
I hope this has been informative, interesting and you liked reading it.
That’s all folks this week but I’ll be back again next week. Please subscribe to my Virtual Demon blog and I look forward to your comments and feedback.