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Quite often, when talking with people from other countries, we start compare wage levels. Although gross income can vary significantly, purchasing power, probably, will remain approximately at the same level, which is especially evident in the real estate market.
Is the grass really "greener" - on the other side?
Thanks to the social network , — I spoke with many experts in my industry who , and collected data on salaries (the data was also taken from ) and calculated parity (PPP, English - PPP) salary in other cities in relation to wages in my home city of St. Petersburg (PPP data taken from ).
How can you compare countries in terms of cost of living now?
Constant price increases on goods and services in the world, which is associated with , does not allow a person today, gathering move to another country, get an idea of the cost of living and the cost of services in a foreign country.
The graph shows the median interest rates in the world over the past 200 years, which, until 1980, were around the world at balanced and reasonable level: about 4-6%:
Lowering interest rates and decoupling the dollar from the gold standard in 1971 - , which became phenomenon of the 21st century.
The same phenomenon from Deutsche Bank.
As a result of these events, countries are establishing:
1. mismatched percentages central bank rates
2. heterogeneous inflation
3. different property prices
4. unequal price levels
5. uneven the cost of living
How can we now compare the "Cost of Living" in different countries of the world?
To assess life in another country, we can use the concept - Purchasing Power Parity (PPP, English - Purchasing Power Parity: PPP)
About purchasing power parity (PPP)
Purchasing power parity - the ratio of two or more monetary units, currencies of different countries, established by their purchasing power in relation to a certain set of goods and services
More:
What is PPP on the Big Mac price example?
Big Mac Price: p1
Berlin-4,70$ / New York-5,70$ / Saint Petersburg-2,10$
Big Mac ППС (Паритет покупательной способности) to Saint Petersburg: p2=p1/2,10
Berlin-2,2 / New York-2,70 / Saint Petersburg-1
Месячная зарплата = после налогов: p3
Berlin-2085$ / New York-3900$ / Saint Petersburg-1150$
ППС по Биг Маку - месячной зарплаты в городе
по отношению к зарплате в Санкт-Петербурге: p4=p3/p2
Berlin-940$ / New York-1470$ / Saint Petersburg-1150$
Similar logic can be calculated for other products, from jeans and eggs to the cost of Toyota cars and utilities.
For this purpose at numbeo.com thousands of people fill in data on the cost of goods and services in their city (only data for last 18 months, after which these "costs" are mathematically averaged). Additionally, by volunteers: data is manually collected from established open sources and these costs of goods and services are supplemented by city Twice a year.
An example of a few (out of a total of 50) expenditure items for St. Petersburg (the number of people who filled in the data for St. Petersburg over the past 18 months - 524):
The article takes PPP on 50 different items expenses. The relative ratio data is as follows:
Local_Puchasing_Power_Index = (Average_Disposable_Salary(This_City) /
BasketConsumerPlusRent(This_City)) / (Average_Disposable_Salary(New_York) /
BasketConsumerPlusRent(New_York)) BasketConsumerPlusRent(City) =
sum_of (Price_in_the_city * (cost_of_living_factor + rent_factor))
An example of comparing the cost of living in Munich (Germany) and St. Petersburg (Russia)
Comparison of the cost of living in Rostov-on-Don and San Francisco (USA)
In my little subjective study - I believe that the PPP cost of living index is taken for average expenses in a given city for a family of four (open data from ). The article deals with the situation when a person living in the city N - invests and spends earned money, in the same city.
Why BIM (engineers and coordinators)
BIM engineer (1-2 years experience) — this is the starting position in a construction organization (previously a BIM engineer was called a “Designer”, now it is called a BIM engineer). BIM manager (experience 4-6 years), this is already a person with experience who should be able to program a little, but no more.
The share of those under construction, using BIM, real estate objects in the near future will be real estate objects. At the same time, construction accounts for BIM engineers and coordinators are former design engineers in construction. Judging by (for 2000 participants) — the number of specialists in this position in Russia at the moment: from 10 to 20 thousand people. Salary ratio in each country - BIM Engineer / BIM Coordinator / BIM Manager: 100% / 125% / 150%. Soon, all engineers working in planning will somehow work with BIM technologies and all engineers can apply to their position BIM attachment.
Conclusions:
1. Total annual salary (which is commonly spoken of in the West) varies greatly depending on the country, while net monthly salary, converted into purchasing power, almost the same.
For example, the total annual salary Kyiv vs San Francisco has a difference of almost 8 timesWhereas net monthly salary will have a difference only in 2 times.
2. The lower your annual income, the more m² you can buy for 10 years in your city.
With the money earned (assuming saving half of the salary for 10 years) for cash (without the use of a mortgage), one could buy 46 m² real estate in Kyiv and 31 m² in San Francisco.
Countries that were included in the calculations - are approximately equal in terms of safety, quality of education and health services. Each of these aspects has its advantages and disadvantages. in each of these countries.
These aspects difficult to analyzeas opposed to the prices of goods and services.
At the moment, to get into the top 10% the highest paid people in the world - you need to have
.
In the last table you can compare what the annual gross salary in St. Petersburg is equal to $15,800 per year (monthly net salary 1,150$ or 71,000 rubles). Based on parity, if you're offered $47,000 gross a year in Boston or Dublin, figure that's about corresponds to a salary of 71,000 rubles. net per month in St. Petersburg.
Despite the fact that this Subjective opinion, I think it might be relevant.
I will be glad to your criticism.
My original article on LinkedIn (English).
Join LinkedIn, I will be glad to new contacts:
All values are with an error of ± 10%
Spreadsheet Link (Google Spreadsheet)
Where did the data come from
The discussion of salaries was held (thanks to those who participated) in the "BIM Russian expats" group on LinkedIn -
Annual gross salary:
Tax rate:
Price per m² purchase:
Purchasing power parity (PPP) to St. Petersburg:
Source: habr.com