GDP Per Capita vs House Prices: Factors to Consider When Deciding on a Country to Live
Introduction
Choosing a country to live in is a significant decision that involves considering various factors. Two crucial aspects to take into account are the GDP per capita and house prices. While GDP per capita reflects the economic well-being of a nation’s residents, house prices determine the affordability and quality of housing. In this blog post, we will explore the relationship between these two factors and how they can influence your decision on where to live.
GDP Per Capita: A Measure of Prosperity
Gross Domestic Product (GDP) per capita is a commonly used indicator to measure the economic performance and standard of living in a country. It represents the average income per person in a given nation. A higher GDP per capita generally indicates a higher standard of living, better infrastructure, and more opportunities for its residents.
When considering a country to live in, a high GDP per capita can offer numerous benefits. It often translates into better education and healthcare systems, improved public services, and a higher overall quality of life. Countries with a robust economy tend to have a wide range of job opportunities and higher average wages, which can positively impact your personal financial situation.
House Prices: Affordability and Quality of Life
House prices play a crucial role in determining the affordability and quality of housing in a country. The cost of housing can vary significantly from one nation to another, and it is essential to consider this aspect when deciding where to live.
In countries with high house prices, such as major cities like New York, London, or Tokyo, finding affordable housing can be a challenge. On the other hand, countries with lower house prices may offer more affordable options and a better chance of homeownership. However, it is important to note that the affordability of housing should be considered in relation to the average income in that country.
While lower house prices may seem appealing, they can sometimes be an indicator of a struggling economy or limited job opportunities. It is crucial to strike a balance between affordable housing and a stable economy to ensure a sustainable and prosperous living environment.
Considerations When Evaluating GDP Per Capita and House Prices
When evaluating the relationship between GDP per capita and house prices, it is important to consider the following factors:
- Regional Disparities: GDP per capita and house prices can vary significantly within a country. It is essential to consider regional disparities and understand that a national average may not accurately reflect the economic conditions in the specific area you are considering.
- Cost of Living: While GDP per capita and house prices are important factors, it is crucial to consider the overall cost of living. Factors such as healthcare, education, transportation, and taxes can significantly impact your financial well-being.
- Future Prospects: Consider the future prospects of the country you are evaluating. A nation with a growing economy and increasing GDP per capita may offer better opportunities for career growth and financial stability.
- Personal Priorities: Ultimately, your decision should align with your personal priorities and lifestyle preferences. Factors such as climate, culture, safety, and social amenities should also be taken into account.
One thing to cionsider when choosing a country is GDP per capita vs house prices.
It’s almost impossible to find the real house prices as they are clearly manipulated, as an example living in Sydney I can tell you the price of a $1m house went to $2m just over the 2021-2022 period, just one year was a 100% increase, whereas online it says -10%.
GDP per capita seems a little more reliable, but it doesn’t matter, there’s a simple way to figure it out anyway.
Why should you do this?
They keep pushing in our face that house prices going up is great.
Like how is that great? If you’re paid $50k per year now and the houses and $1m then next year it is $2m but you’re still paid $50k per year or like $75k like whoopedy doo. MOST people are delusional and think because their ‘equity’ has gone up they’re now richer.
No you’re not! the second you sell the house, you will just have to buy another one for the exact same price next door, you’ve made no money at all.
This IS good for those getting tonnes and tonnes of debt and who are lazy, in the short term, but the second you sell you’re done, so none of them sell so they all just hold onto it until the prices for other things catch up to the house prices.
They’re all just running around inflating everything trying to bank on which thing will inlfat last.
I mean, why not just buy long life food. Its $5 for a can now, but will be $500 in not too long. But who cares? When you sell it, the $500 will just be able to buy you a can of food. So you’re just waiting to get the same amount of money anyway.
So what’s the altertnative?
Move somewhere where house prices are going down and avergae pay (GDP per capita) is going up.
Why? Because it means you’re getting paid more and more year on year and things are getting cheaper. It’s not just a shit fight to chase inlfation.
Just think for a second, living in a place where the pay is $150k per year and houses are $500k vs $50k per year and $2m you are 700% richer, immediately.
Practical example.
Please note: I am coming up with these numbers off the top of my head and rounding to make the example easier, would need to go look up yourself.
If you go live in Thailand you can find a nice house where I am for $100k and it’s quite easy to find a remote job for $50-100k from Australia so in 1-3 years you can save up and buy a house cash.
But let’s sweeten it.
In Qatar or Norway the average pay (in these stupid statistics graphs) is $150,000 (average my dudes!!!) so in reality might even be higher, who knows.
But anyway, now if you got a job at $150,000 per year you could work for just one year to save for a really nice house in Thailand.
And guys, you can find beautiful places in Japan which are like $5k which you will just need to do a little resoration on.
Are these numbers real?
You absolutely do not need to believe me, there is so much bullshit floating around that almost everyone trusts no one, I understand.
So here is how you find the truth:
Step 1: Compare jobs
Go look up jobs in a few countries that have reported higher GDP per capita (norway, saudi arabia etc.). Look up the actual job being advertised, the job you would do.
This will give you the real amount being offered right now.
Step 2: Go on real estate sites.
Go on a real estate site and find what houses are being advertised for.
Step 3: Check where you are now
Now do the same thing with a similar job and similar house where you are now (could do this first, doesn’t matter).
Step 4: Find the numerical difference
Example: Qatar vs Australia (sydney)
Job: Doctor with 3 years experience
Qatar:
Pay: $500,000 per year.
House price: $500.000
Sydney: $250,000 per year.
Comparable houses (similar look/distance from beach): $2m
Real percentage improvement in standard of living: 500%
(note, i have taken these numbers from the top of my head)
Step 5: Can you do remote?
To amplify this equation even more, can you get the Qatar/Sydney pay while living in say bali? Or malaysia? Where expenses are signifcantly even lower.
Full maximisation example:
Plan: Live in Thailand, have a job from Qatar
Live: Thailand: House $100,000
Job: Qatar: $500,000
Original: Live and work in Sydney, Australi
House $2m
Job: $250,000
Standard of living increase:
1. House: 2,000,000/100,000 = 20 times cheaper (2000% cheaper)
2. Job: 500,000/250,000 = 2* cheaper (100% higher pay)
So you have a standard of living increase of 2100%
Could also add a country to reduce tax for your company, like Dubai or Hong Kong and could add a country with easy residency with great healthcare like Taiwan, but we can expand on that in another post.
Conclusion
When deciding on a country to live in, evaluating the relationship between GDP per capita and house prices is crucial. A high GDP per capita indicates a prosperous economy and a higher standard of living, while house prices determine the affordability and quality of housing. However, it is important to consider other factors such as regional disparities, cost of living, future prospects, and personal priorities to make an informed decision. Remember, finding the perfect balance between economic stability and a comfortable living environment is key to choosing the right country for you.
