Last summer it was the record floods impelling people to flee Britain in search of a better life abroad. This year’s headline incentive it seems will be the global credit crunch.
According to new research conducted by YouGov for Legal & General, and reported in the Scotsman, 19% of Scotland’s five million population would be prepared to move abroad to escape the sharp rise in living costs stemming from the credit crunch. And an estimated 550 people a week are thought to be leaving Scotland for a life overseas already.
But while the UK is undoubtedly an expensive place to live, it isn’t the only nation to be hit by escalating living costs.
Food prices around the world are soaring thanks to a combination of forces, including long-term droughts in Australia and more US farmers turning their crops over to biofuels. Meanwhile, oil continues to trade around $130 per barrel, compared to an average of $20 – $30 over the past 60 years, which has caused petrol and fuel costs to rocket everywhere. And because oil powers so much of the world’s manufacturing it has fed through into price rises for a welter of other goods.
As a result, inflation is once again rearing its head on a global scale.
In response, the European Central Bank raised eurozone interest rates to 4% last Wednesday, double what it was just 18 months ago. ECB President Jean-Claude Trichet indicated further rate rises could follow too. Not got news for borrowers.
And with the euro remaining strong against the pound, any money transferred from the UK to Europe will not go nearly as far as it once did. Popular British expat destinations like Spain, France and Portugal are no longer such cheap alternatives then.
In addition, while you may find moving abroad gives you a lower cost of living, you also need to consider what your earnings are likely to be in your new location. Yes, your living costs may go down, but if your income decreases by a similar amount how much better off will you really be?
Of course the expense of UK living is a concern for many people. But it is a global phenomenon. Better therefore to think before you jump. So if you’re considering a move abroad, make sure your decision is based on a real heart’s desire to experience life overseas, rather than in response to external – and potentially temporary – factors.
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