Investing in Taiwan

Has anyone asked why you feel the need to invest US 300K in Taiwan?

Actually gambling has a negative expected return. Thatā€™s how casinos make money.

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Demographics are a key fundamental driving real estate. Taiwanā€™s population is expected to begin declining this year, two years ahead of schedule, meaning an already dicey investment ā€” Taiwan real estate ā€” will become an even riskier investment except in a few zones in high demand.

Invest in US index funds. If youā€™re a US citizen, Vanguard has been known to not f people over. Iā€™ve gotten 17-23% returns for the past three years, including the massively massive drop back in March-April. Naturally, this is NOT the norm, but Iā€™ve accepted that Iā€™ve got Monopoly/funny money thatā€™s at least currently making me waaayyy more than any bank account. Also significantly easier to manage than real estate, though real estate does mean you have a house to move into if you need to kick your tenants out in order to avoid being homeless. Iā€™ve been waiting for Taiwanā€™s housing bubble to burst for a decade now, so I have low hopes on that actually happeningā€¦but a million USD for a :poop: space anywhere in Taiwan is not a good investment given the population decline mentioned above. You canā€™t come close to breaking even even with the insanely low interest rates.

People have been saying this for years but it keeps going up and up. The bubble wonā€™t pop imo as long as the very wealthy keep buying up empty condos and families keep shelling out big bucks for their kids to have a home.

As the older ones die off the kids get the houses. Plus the super low interest rates and capital gains tax it makes sense for the rich to load up on homes.

Worst case Taiwan just has to pull a Japan and allow more immigration to help their population growth.

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Really :grin:

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buy the Yuanta 0056 ETFā€¦around 5% annual dividend

I hear thereā€™s a place with a huge population of potential immigrants less than 200 km away.

Well, if I were you I will invent on a property in Taichung. Since the cost of a house in Taichung is still way too much cheaper than in Taipei and has more opportunities to raise up in the future. Not only the cost of houses is still not horribly expensive, but also the city is still developing. So itā€™s not late if you can try to invest in Taichung. And I believe itā€™s a good opportunity to earn more money than any other investment if you are thinking of buying(investing) a house in Taichung. Some of my friends bought houses for earning money. They said it could help to earn a lot of money. Likely 50% of the original price or even more. For instinct, if you pay 10,000,000 for a house, the price may raise up to 15,000,000 in 5 years. So think about it!

Seems like weā€™ve found the Taichung real estate agent! :joy:

Thatā€™s an annual growth rate of 10%, not adjusted for inflation. The S&P 500 has handily beat that over the past 5 years. Unlike a house, stock markets are highly liquid and stocks have no carrying costs (unless youā€™re buying on margin).

Hell, in the recent market euphoria, Iā€™ve more than tripled my money invested in individual stocks in periods of 1-3 months. Iā€™d let someone else deal with the dirty air in Taichung.

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Morgan Stanleyā€™s 2021 YE forecast for the TAIEX is 16,500 (does anyone have a link?)

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Here you go!

What is Taiex? Taiwan Exchange?

Yes, the TAIEX is the Taiwan Stock Exchange, the ā€œBig Boardā€ not to be confused with the Taipei Exchange or TAIPEX, the former Gretai Stock Exchange

https://g.co/kgs/RBZVUa

https://www.bloomberg.com/quote/TWSE:IND