With Hong Kong’s inflated property prices and UK’s affordability on the rise, it is more crucial than ever to budget your cost of living. Which option is cheaper? We’ll be examining housing, food expenses, transportation and taxation to find out!
Watch the video above to take a deeper look at each category with us. Here’s a quick summary of our breakdown.
Housing, Rent & Utilities – Go for the UK!
Using a one-bedroom apartment as the benchmark, we can consider two options.
- Rental – on average, it would cost you 17, 800 HKD per month in Hong Kong, 600 dollars less than the 18, 600 HKD you would have to fork up in the UK.
- Property Purchase – the average property price tag in Hong Kong is DOUBLE that of the UK at 24, 600 HKD per square ft. compared to 12, 000 HKD per square feet respectively.
However, rent and utility prices in the UK vary largely depending on location. Rent in the city center tends to be expensive, while utility prices in rural areas may be higher as facilities tend to be sparser.
Food, Groceries & Restaurants – Depends on Your Lifestyle!
If you choose to cook for yourself, you’ll spend 65.7% more on groceries in Hong Kong than in the UK as Hong Kong imports most of its meats & greens.
In contrast, almost 70% of British land is used for agricultural purposes so you have a wide selection of supermarkets to choose from, and competition keeps prices down.
But what if you were to eat at a restaurant, an average meal in Hong Kong would cost you only 60 HKD, whereas one in the UK would burn a whooping 140 dollar hole in your wallet.
Transportation – It’s a Draw!
Public transport is almost 40% cheaper in Hong Kong but owning a car is a whole different story.
While vehicle prices are similar in both places, petrol in Hong Kong costs 5 dollars more per liter than in the UK. On top of that, it’s just much harder and more expensive to park in Hong Kong.
Taxation & Hidden Costs – Tied Again!
Hong Kong has one of the lowest taxation rates in the world. The standard salary tax stands at only 15%.
Income tax rate in the UK on the other hand STARTS at 20%, with the ability to go up to 40% or even 45% depending on individual income.
The caveat is that Hong Kong has a so-called “Hidden Tax” because what you save in taxation merely bleeds away into payments on expensive rent and housing mortgage costs.
Make the Right Decisions
It’s important to consider your lifestyle and income when making the decision to move to a new country. Watch the video above to get a detailed view!
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