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The Big Mac Index -Do You Know How It Affects You?

By
Real Estate Broker/Owner with Venture Realty International

Have you ever heard of the Big Mac Index?

Sandwich

If you've ever wondered about the relative costs of living in or visiting other countries, there is a fun way to see how far your dollars will go.   It is called the Big Mac Index.  Economics based on a sandwich --- the infamous Big Mac.The Economist Magazine (www.economist.com) started the Big Mac Index in 1986 as a semi-humorous way of explaining exchange rates.  Big Macs are everywhere and we can compare the costs.

Money

I specialize in helping people with real estate in Latin America.  Sometimes for retirement, sometimes a second home and sometimes just as a great investment.  Often the first question is:  "How far do my dollars go?  What can I buy on my income?"  It is fun to answer,  that the same Big Mac you buy in the United States for $3.57 will cost you the equivalent of $2.39 in Mexico. No wonder so many people want to retire in Mexico.

 

 Do you have questions about real estate in Latin America? 

We are glad to provide assistance if you are considering a real estate purchase in Latin America. www.Paradise4Gringos.com

Not a real person
San Diego, CA

Hey, Gary. I left a surprise for you in my blog post this morning. Let me know when you find it. What? You thought I was going to tell you exactly where it is? Ha! This comment is a clue, though.

Hope you have a super Saturday!

Nov 12, 2011 03:36 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hey, Gary!! I'm glad Russel chose your post to re-blog in his "Golden Oldies" series. The Big Mac Index is fun to know about -- what a great way to help kids and teens understand cost of living in various places (let alone adults.!)

 

Nov 13, 2011 02:29 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I haven't ever heard of it before but look forward to playing in it.  I agree, lets go to the warmer climate!

Nov 13, 2011 02:33 PM
Fred Carver Real Estate Consulant
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant

Hi Gary...Wow That is a great price for a Big Mac in Mexico, The First McDonald's I can remember Sold their regular burgers for .19 cents...How Times Change.

Nov 13, 2011 04:23 PM
Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Russel, Thank you for the big surprise -- it is great getting re-blogged as a "Golden Oldie".  I did look at the updated Big mac Index and I think I better do an updated version later today.

Lottie, Thank you.  I've always found it as an interesting way to explain what is happening in the international markets.  

Evelyn  Thank you for also re-blogging this.  And since it snowed last night again where I am building my mom's house, I can't wait to leave again for those warmer climates.

Fred,  Wouldn't it be nice to find somewhere with 19 cent burgers? The best price that I see is currently in India with $1.89 for a "Maharaja Mac".  

Nov 13, 2011 05:08 PM
Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Here is an update for the Big Mac Index.  It seems that prices never stay the same even for Big Macs:

The Big Mac Index -- An Update

Nov 14, 2011 05:40 AM