But Taiwan is not a city state. How can you state with such confidence that this is the case for the entire country?
I just bought a house that equals its rental payments in the mortgage and equals my current rental payments as well.
Overly simplistic view on a complex housing market.
Taipei is not Taiwan. There are many cities and former cities that are arbitrarily called districts.
Interest rates are not going to skyrocket.
Congrats. What was your downpayment?
Sure. If you want to live in Pingtung that changes the equation.
Oh? Have you looked at the macro economic state of the world recently?
The reality of it is for the vast majority of cases real estate in Taiwan is way overpriced, particularly for the poor quality.
20-30% of the market price. Still negotiating. We’ve got a few offers so I am trying to finalise some deals.
The house I just bought is a stone’s throw away from a Taipei MRT station. Not a figurative throw. A literal throw.
Nobody’s going to go to the bad old days of 18% interest. Remember that raising interest rates makes borrowing harder for businesses too and can cause economic contractions that way as well.
But for me, at 1.5%, which I was offered in the banks we are applying with, would increase my payments by a mere $1000/m if a full percentage point was increased. At two percentage points, I’d be paying $2000 more. That’s OK because it’s still affordable. $2000 more than the market rent? No big deal. Still paying into a house that is going to return more than the 0% return renting gives you. Remember, you HAVE to live somewhere.