what is geographic arbitrage ?
let’s start by arbitrage – it means the difference between two things – e.g. the cost of hiring a programmer in usa and some other part of the world . it works to be cheaper in the other parts of the world.
so what is geographic arbitrage ? it means that you get paid a good salary , but live in a less expensive part of the country.
Let’s take an example .
In the us , there is silicon valley , where the salaries are really good , but the houses are very expensive .
a usa real estate website – http://www.zillow.com – shows that a 1400 sq feet home in Palo Alto , CA , the heart of silicon valley sells for a million dollars
if you were to get a silicon valley job, but live in a less expensive part of the country , say , Des Moines ,IA , a 1600 sq feet home cost just 260,000 dollars , almost one fourth of the price
You can remain connected to the office , work remotely via internet , and use audio / video conferencing for meetings
This is called geo-arbitrage . the use of geography to save money
middle – america is a prime real estate territory due to this .
it does not have to be just america , it could be any country , any city really.Add to favorites