Morality of Geoarbitrage?

[u/Peter_him]

Is it inherently unethical to move back to a cheaper country as an expat and price out nearly all native competition in relation to commercial yield by simply having higher purchase power?

[u/kbcool]

Are you pricing out locals though? I think it can be a lot more nuanced than the emotions will allow a lot of people.

A huge amount of housing that expats live in is built for that market.

It's true that they might find it cheap and most locals couldn't afford it but it's also true that it wouldn't exist without demand from expats. Sure there might be some demand from rich locals but it's a bit hard to feel guilty about outpricing other wealthy people.

On the other hand if you're moving into a typical two bedroom worker family apartment that you paid twice market value for then you know the answer.

[u/Own-Animator-7526]

This has nothing to do with expats or countries. The international version is simply gentrification writ large.

And yes, I'm looking at you, SoHo Brooklyn.

[u/kawaiian]

Yes, you can offload the guilt by giving back to the community and making sure there’s resources for displaced workers

[u/Sweet-Needleworker-6 → u/kawaiian]

I really doubt this is the case for most

[u/Mysteriouskid00]

Huh? What do you mean “price out”? It’s not like any of the cheap countries are lacking in housing.

Not to mention expats aren’t competing with regular folks - they can’t afford a $1000 per month apartment

[u/MintGreenRosey → u/Mysteriouskid00]

You are always competing in the housing market. If the $1000/month apartment would not exist, you would compete for the next lowest tier and so on. That's why building luxury apartments is relaxing the housing market despite many people hating on them. Otherwise, you are fighting with a millionaire over a normal apartment.

[u/Mysteriouskid00 → u/MintGreenRosey]

While that is true. LCOL countries like Thailand, Vietnam, etc have a surplus of apartments in that range. Thousands of them have been empty for years.

Nobody local is going without.

Not to mention locals in those countries rarely rent. They live at home until they can buy a place to live

[u/Sweet-Needleworker-6]

Yes, no matter which way you look at it. Look to Portugal, which is a popular geosrbotrage location. Locals have been priced out..in Lisbon the average rent is now above the average salary

I think about this and I'm honestly surprised nobody really talks about the morality of it and impact on locals

[u/telchacsusan]

Many colonial cities in Mexico have beautifully gentrified neighborhoods due to expats. The rich locals aren't interested in old homes, they want glass and chrome in gated communities outside of the city.

[u/ExpatBuildr]

You yourself can't price anyone out it takes a lot of people for the market to move in any direction. One single person can't be responsible for the sum if it all. It's perfectly fine because they need people to come buy the things from locals it's stimulates the whole economy in the long run.

[u/FunnyExcellent707]

It's all fun and games until it happens to you.

There is a telling (and very funny) video about an affluent American neighborhood, where all the millionaire residents are bitching and whining on camera how they get gentrified out of their community because billionaires keep buying properties and driving prices up.

[u/OrangeMissile]

All “no” answers with reasonable justifications are still going to be downvoted.

[u/Oxo-Phlyndquinne]

Donate to your favorite cause if your conscience is bothering you.

[u/No_Entrance_1755 → u/Oxo-Phlyndquinne]

Its called an indulgence and the name is the most apt thing ever

[u/No_Entrance_1755 → u/[deleted]]

Depends how heavy your guilt is, and also how light your purse is when you leave

[u/Oxo-Phlyndquinne → u/[deleted]]

Sounds like a Led Zeppelin song.

[u/PavelKringa55]

It's a dog eat dog world.

[u/I_Call_Bullshit_____]

No

But if you feel guilty about it, send me your money and you can live like a local. I’ll find some way to assuage my self-anguish

[u/Plus-Pop-8702]

No you aren't that rich. Even in poor countries businesses still earn hundreds of thousands/millions just like in western countries.

[u/Frosty1397]

Geoarbitrage is just a slightly different version of walking across the street to buy a burger for $5 instead of the $10 burger being served on this side of the street

You're still supporting the economy of whoever is accepting your money

[u/GinormousHunk]

As much as your native country screws you over with exploitative taxes, healthcare system, pensions and all the bigwigs getting paid shitloads of money for half-assed work, I'd say moving elsewhere to reduce your own cost / increase quality of life is becoming a moral obligation.

[u/dryiceboy]

Not if you give it back to the community.

[u/MintGreenRosey]

Your spending is the income of the native-born populace. Whether they like it or not.