Cheaper to rent in Barcelona and commute to London
The point of this piece is not that living in Barcelona and commuting to London is sensible -- it's that the North London property market has gone totally batshit insane.No, seriously: renting a 2 bedroom flat in a not brilliant suburb of London costs around £25,000 a year, or US $40,000. Then you can add council tax (another £2000), water, electricity, and gas bills, and travel. Upshot: the fixed costs of living in London are on the order of US $50,000 per year (two beds) or around $40,000 per year (one bed). Note that I focus on the two bed option because that's the practical minimum for a family unit, or for someone who telecommutes from home. Note also that the average gross income in London is a little under £28,000 per year (before tax).Upshot: normal people and normal families can't afford to rent in London any more. The only thing propping up these insane prices is the scarcity induced by the current bubble in the foreign investment housing market. The crash, when it comes, is going to be epic.