In reading some threads as of late, and talking to people here in Canada (especially in Winnipeg where houses are cheap), it strikes me how much people buy into the concept of owning real estate through your personal residence as THE way to make money and build equity.
Now I get that Taiwan has low interest rates (even lower than Canada), and obscenely long mortgage terms, which makes it cheap over the long run - but does it really?
Simply put, if you factor in the years (decades in some cases) spent saving up for a down payment, likely in a very low interest savings account, along with the interest paid over 30+ years … I just don’t see how it is worth it. This also doesn’t consider maintenance, property taxes, insurance, and all the other little things that pop up as a homeowner.
I just have a hard time understanding how this beats just paying rent (let’s say at $20000NT/month), and investing the remainder into the S+P 500 over a similar period (say 40 years) - to me it doesn’t.
I know some people just see the stock market as too risky, but real estate is a risky business as well, and completely undiversified.
Ultimately, I just can’t see how it is worth it - but everyone’s money is their own, and we do with it as we will.