I’ve got the same question. That’s also how I read what’s been quoted here, but presumably there’s more to it. And yeah, at some point when we sell, if this is an issue, I’m going to get rather annoyed about it!
Then again, I have no idea what the tax rate is for property gains for a local if you’re selling something twenty years later.
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Still not really sure, after 2 or 5 years, what happens? Selling it is tax free?
13,000 out in tucheng… so still over priced. Well compared to a 1 room studio its probably quite spacious, people will rent anything.
What about properties and lands inherited? Will capital gains tax apply here? Also does step up apply in Taiwan for inherited estates for both “self use” and “investment properties”? Thank you in advance.
How many ping? at that price it better be over 50 ping. At least you can build proper walls over the bathroom.
Cant remember but it was a decent size.
On what planet is five years a long time to hang on to property before selling it?
+1
They’ve implemented it quick too.
Heck yeah, collect’em like Pokemon. Living the American dream three times over.
@Taiwan_Luthiers there are other ways to improve the situation. For example, vacancy taxes in some NA cities haven’t changed the culture of hoarding, but they have been seen to (1) increase tax revenue (which can be used for social programs) and (2) add some relatively affordable, high quality rental units to the market (showing the “the only way to bring rents down is to build more” slogan for the lie it is).
Well, since it’s recommended that you should never buy a property if you don’t intend to live in it/rent it out for at least 5-7 years, I would say it’s not even remotely a long time.
But this law is supposed to stop people from buying houses on speculation, not hoarding. That law actually might do something about the home prices. There are a lot of new builds near me that I checked the cost of when I first moved in (in August). On 591’s 新建案 (new builds), there were units listed at 80-88萬/ping. Nine months later, those same units are now “old houses” (中古屋), going for at least 98萬/ping. Someone came in and put in 樓中樓 (middle level floor/built in lofts) and stupidly placed built-ins, then jacked the price up by 10-18萬/ping. Yet there’s always someone with the building company’s sandwich board standing around advertising that there are units for sale. Yet those units no longer exist in the “new builds” part of 591’s website, nor can I access how to buy a new unit on the construction company’s site. My guess is that, were I to enquire, I would be told “sorry, we don’t have anything at 80萬/ping, but there are some nice units available from 100萬/ping”. 去吃屎.
I agree. Vacancy taxes, at minimum, slap the hands of people who don’t do anything with their properties and make them reconsider what they use them for. Could even use the tax revenue to build well-constructed apartments that are rental-only and reasonably priced (not necessarily “low income housing”). Clearly flooding the market with more homes has done nothing in Taipei – politicians are always talking about “the lack of housing” while soooo many units sit unoccupied for years, meanwhile, the cost per ping has only gone up
Some of it is caused by hoarding, some by speculation. Maybe you have better data than the Taiwanese government to determine.
I was once looking at a 4-bed/2 bath room to purchase. I asked on Facebook whether anyone would share a 4-bed/2-bed room with three other people. FB friends said no. If I build a shacklike-bathroom in the back yard, It’ll be 4-bed/3-bed instead, and a lot more rentable.
No, I just don’t have anything to lose by pointing out how to address the actual problem, unlike 100% of Taiwanese politicians whose entire net worth is caught up in shadily acquired property.
Yeah, more people might be willing to rent it, but who actually wants to own and then live in it long term? I’m almost 6ft tall. I don’t have the mental agility to need to hunch over in my living space all the time, which is what 樓中樓s result in. I guess if I were a very short Taiwanese woman I wouldn’t mind so much, but it’s this attitude of (usually illegally) cutting floors in half to add another floor is not helping the housing crisis. It’s giving landlords an excuse to provide increasingly less space for increasingly higher prices. Next up will be “coffin houses” like in Hong Kong.
Ive seen many of his videos, he always makes insightful points on the different real estate markets around the world Im familiar with…and again he nails all the major points about Taiwan real estate
Number 10 surprises me – it seems obvious that Chinese would be large investors in property in Taiwan, but I was under the impression (from everything I’d read from other sources) that the Chinese weren’t buying up property in Taiwan. Just lots of Taishan.
They are just waiting to get it for free after reunification.
There are different borrowed hukou scheme regulations and also some will check how long you were on the hukou in that district. The schools will then enforce a pecking order depending on how popular that school.is . Also if you have one kid is in the school already that’s an advantage. It’s not super straightforward.