Monday, April 01, 2013

Renting An Alpha Global City

For the most mobile talent, geographic arbitrage is increasingly attractive. The allure of Big City isn't worth the cost and visa hassle. Kiwi homecoming:

"It certainly seems as if those who are going to the UK stay for less time because of the difficulty of obtaining long-term visas or residency. For Kiwis who want to migrate elsewhere more long-term, other options apart from the UK, including Australia, may become more preferable," said Dr Baird.

Kiwis tended to be drawn home by the lure of family, lifestyle and a desire to own their own home, she said.

"Although real estate in the major cities is increasingly pricey, owning land is often still more achievable in New Zealand than in the big Australian and European cities, especially if financed by overseas savings."

Emphasis added. Land is cheaper back home. Wages are higher abroad in major global cities. New Zealand  migrants get the best of both worlds.

Moving to New York or London is like going to college. You amass human capital and graduate. The payoff is elsewhere. The greatest value for your Cornell degree is outside of Ithaca.

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