Debating about buying property - Taiwan/US

I’ve read through many posts and papers on the Taiwan housing situation, so I’m well aware of the crazy prices. For the years I’ve been here, I have been paying much less in rent compared to the mortgage for where I live. I also could buy a house in the US. I’ve heard it’s difficult for US banks to take foreign income as a reliable source of income for a mortgage, so that would be a challenge. I also want my name on a house in Taiwan and not have it under my Taiwanese wife’s name to get the lower interest rates, but I don’t want to pay a higher interest rate ha.

I would classify my spending habits as frugal, so spending money I don’t need to is not something I enjoy. I do well for myself in Taiwan, so I’m ahead of target for my retirement goals and other savings. I have enough savings now for a down payment but trying to wrestle with which direction is better/financially beneficial.

Looking for opinions and experiences from you wise people of the internet.

I actually bought one AND got the citizens’ interest rates (or at least close to it)

It’s in my name. I gag at the idea of getting married at my unripe young age. A lot of my opinions, musings, pitfalls are in that thread.

If you want, feel free to ask questions. I would like to know more details of your own situation. Like where, budget, requirements etc…

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for me, the price isnt the question. because taiwan is far beyond expensive. The point for me is renting is annoying as all hell (landlords tend to be very “special”). So if living here long term, I think it is worth buying for personal residence, mostly just for peace of mind. even if the actual value is far less than most other places, comfort is the reason we earn money. Makes sense to use that money to improve your life.

But personally, I wouldnt buy now with the idea of making money on a future sale. may or may not happen, but seems unlikely.

Buy for personal residence or doing business. otherwise I would pass.

2 cents.

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Depends on where you want to buy a house in the U.S.
In Florida, forget it. You are 2 years late. Prices like Taipei.
What states/cities you considering back home?

You’ll be literally underwater within twenty years anyway…

Thanks! I’ll take a look at the thread after work. Sounds like you had some luck.

Where:

Taichung (Beitun near the new Costco).
Walking distance to the train station for work transportation.

Budget:

~15M max (wanting 3 bed 2 bath).

I appreciate the feedback.

If I buy in Taiwan, it won’t be used as an investment property. I would buy to live in it. Assuming there aren’t any massive shifts in the political climate in Taiwan, I’d like to retire here even if we go back to the US for a little bit, so I’d like to have no mortgage when I retire.

I’ve actually had very good luck with landlords and had almost no issues so far.

I just can’t get over $500k for a tiny apartment when most of my friend’s homes are “expensive” at that price (in Colorado) and their brand new house is huge. Anything I buy in the US would need to be an investment though, and prices right now are ins are there too. That’s why I’m not really in a rush to buy. I can wait it out until a more reasonable deal here or there comes along. Just not sure if that will actually happen here.

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I’m thinking most likely Colorado (not Denver), but I’m kinda open to any place that’s big enough, has a good-sized tech industry, and isn’t always steaming hot or freezing cold.

i agree, i am not buying in TPE since the compromise on housing quality is too big, 1 million USD gets me less here compared to my home country.
I dont want to leave Taipei, since then im compromising on quality of education, income and other factors.
End result : im happy renting, my retirement savings include a portion earmarked for housing when i retire.

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I don’t understand how anyone can afford to buy on these salaries. I think I’m pretty decent at saving and still only expect to save about 500,000 Ntd in one year. 20% of 10,000,000 is 4,000,000

It’d take 8 years just to afford the principal on the house alone and that’s assuming I spent the entirety of my life savings on it

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its not easy, but possible:
Most of my TW friends got married and bought apartments later in life (mid to late 30s), so you have more time to save. if you buy as a couple, you have dual incomes, so one salary can be used for housing payments. Many had an inheritance from selling a deceased grandparents apartment, also parents helping out. In addition, the loans are very very long, you pay into your 60s.

So if I have a single income (like when I get married if my wife wants to stay home) and I don’t have any inheritance, I’m basically fucked?

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Not quite

Yes, quite right. But that’s not just in Taiwan.

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Not fucked, but at a worse starting point that will limit your options. You can offset this by making more money in your job, or by living somewhere cheaper.
I would also recommend finding a spouse that has good earning potential: e.g. if your partner is an engineer in high tech, you will be more financily set than a partner who is an artist.

But that’s universal, not just in Taiwan.

Oops :joy: I meant 2,000,000

I teach English not math ok

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I have some friends where the parents will pay the down payment for the house and they live paycheck to paycheck just to cover the mortgage. It’s abundantly clear that wages in Taiwan don’t keep up with actual home ownership costs.

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Has anyone had an experience buying a house in the US while living in Taiwan and using foreign income to qualify for a mortgage? Any specific banks I should go to first?

I will wait until more homes come on the market, so it’s not a near-term option if I go down that route.

This. The only ones in my age group I’ve found buying houses are able to do so because their parents are loaded.

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I guess I’ll just wait until I move back to the USA and just use my VA loan to buy in America

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Purchased a house in the US earlier this year. I work remotely for a US employer so was able to qualify for a conventional mortgage, but had a moment there in underwriting where that came up as a potential issue. I gave these guys a call for a potential backup and they were extremely professional and specialize in just that: International Mortgage Lenders USA Homes - America Mortgages

I got a conventional loan with 5% down at 2.75% APR, and these guys said that the best they could do at the time was 20% down with around a 5.5%? Assuming rates have gone up considerably since then, but it was about double the rate

Probably unfounded, but does anyone have concerns of having most of their wealth tied up in a house in Taiwan if China does ever come over the strait? I’ve talked to my wife about potentially getting an investment property (and place to stay if we wanted to spend a year in Taiwan every now and then) in Taiwan but that has always been my concern