I Signed - The House Purchase Saga

If loan is NT$1,000,000 and interest rate is 1%, then interest amount is NT$10,000.
If same loan is NT$1,000,000 and interest rate rises to 2% under flexible rate, because CBC raises rates, then interest amount is NT$20,000.

Rates are more likely to go up and not down. Hence, fixed rate safer.

For interest only. Is that typical in Taiwanese mortgages?

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What’s your plan for when the commies come? With your social media footprints you’re probably already on one of their lists.

I’ve always had this thought too. What if the commies come in one day and boot out all the foreigners and keep the homes.

The commies went into Hong Kong in '97 and the real estate prices shot up. People who dumped their properties before the handover were kicking themselves.

That’s true. A ton moved to Canada and when nothing happened moved back a few years later

Well… something did happen, it just took 20 years.

It wasn’t for lack of trying either.

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The idea is fine in principal, really depends on your risk tolerance. But…

  1. That’s a REALLY bad example that you gave. Flex rate 1% today / Fix rates 2% today. If flex rate goes to 2% in one year, then you’re paying the same (higher) amount as you would’ve with the fix rate off the bat. So yea, with a flex rate you’re may be paying twice as much INTEREST one year later, but I’m pretty sure that’s still better than paying twice as much INTEREST starting today
  2. It really depends on how long you’re planning to stay in the house. Are you staying for the entire duration of the fixed rate? Then yea, a fixed rate might make sense. Are you staying for 3-5 years? Then you’re paying for that extra ~25yrs of rate “insurance”
  3. Are fixed rates even available in Taiwan?

And no, if your rate doubles, your monthly payment does NOT double. The amount of INTEREST you pay doubles. There’s a difference. Not going to do the math, there are plenty of online mortgage calculators out there.

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The general idea is that you will pay more if flexible rates go from 1% to 2%, and yes it is the interest amount.

Eventually yes but in the meantime anyone that sold early lost out on a ton of gains

That was peaceful reunification at a time when China was still weak militarily. If China uses force to take Taiwan things won’t go well for westerners caught in the crossfire:

Chinese President Xi Jinping will employ force to unify Taiwan with China by 2027, an influential Chinese academic who advises Beijing on foreign policy told Nikkei. . . .

On whether the U.S. would have a military response to a Chinese move to take the island, Jin said that “China already has the capability to unify Taiwan by force within one week” and that “the PLA can defeat any U.S. force within 1,000 nautical miles of the coastline.”

The PLA is believed to have a strategy of keeping U.S. naval vessels out of the waters around China – and thus refining its ability to launch missile attacks against American forces there.

Well… There are several scenarios.

I rent and commies don’t come: 0% returned
I rent and commies do come: 0% returned

Or

I buy and commies never come: My housing budget goes into something I own - Investment protected

I buy and commies come I: Chinese take over Taiwan peacefully

  • Scenario I: Life remains relatively normal for several years. Sell the house and move on. Investment protected
  • Scenario II: Chinese forcibly seize property. 0% returned.
  • Scenario III: Chinese forcibly sell property. Investment partially protected

I buy and commies come II: Taiwan wins war.

  • Scenario I: House destroyed in fighting. Investment may or may not be protected in rebuilding. #winning if I get a brand new building with new building codes, but this one is already a newish building to begin with.
  • Scenario II: House not destroyed. investment protected

I buy and commies come III: China takes over Taiwan violently.

  • Scenario I: House destroyed in fighting. 0% returned.
  • Scenario II: Chinese forcibly seize property. 0% returned.
  • Scenario III: Chinese forcibly sell property. Investment partially protected.
  • Scenario IV: Chinese leave me alone. Life is normal for years. Investment protected

No matter what, if I don’t buy, this $13000 I pay every month is going to be lost. Might as well use it to something I own.

I don’t have any social media.

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The Communist Party has practically admitted, despite saying it is the ‘will of the Chinese people’ and that the DPP are just simply preventing Taiwanese from exercising their free will to unite with China, that the unification party has no support.

Jin is skeptical that peaceful unification can be achieved, saying: “It will difficult with Democratic Progressive Party President Tsai Ing-wen in power. If [an opposition] Kuomintang candidate wins the presidential election in 2024, relations will improve, but the Kuomintang has no support.”

This is great, I’m sending this to my Canadian MP. lmao

But… you do see the error in your logic/rationale with your example right?

For more expensive houses the rule is 40% down even for Taiwanese. I believe outside Taipei and new Taipei the limit is 40 million so anything over that you have to put down 40%.

Thank god they accepted my offer of 6.

Congratulations, Marco!
May I ask why have you decided to buy property in Taiwan ? (I am genuinely interested - I am only highlighting this because we often see sarcastic and malevolent comments under topics like this, and it is not the case with this question)
The reason behind my question is that I myself also considered to buy a property here, since loans are cheap and I’d rather pay towards something which becomes mine instead of renting. Eventually I came to the conclusion that I am personally better off buying something back at home for less and rent it out for more which allows me to live and move to anywhere in Taiwan.
But I am still very much playing with the thought of buying something here too (coming from a background/culture where the need for owning a property or properties is “in your DNA”, even if it doesn’t makes sense. I couldn’t help it and became a person like that). So it would be great to hear your opinion as someone who actually made the move unlike the rest of 99% of us who are just considering or have considered this.

Once again, congratulations and wish you a smooth journey.

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Go Fund Me. Then, buy an island in Thailand.

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Are they now? Hindsight is always 20/20. But moral people that do stuff arent kicking th emselves staying hong kong now, thats for sure! Its the age old problem for the selfish…how long can i be part of the oppression before it bites me.

But for marco, i am happy. I think it is worth buying in this ultra inflated market under either of 2 situations. to make money (business) or for personal residence. Congrats man! Sometimes money SHOULD be use to buy happiness :slight_smile:

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Or at least a place to live. :grin:

Let us know @Marco if the banking thing works out.

Guy