Her husband is an engineer and makes more. I’m guessing the two of them combined would be around 180-220K.
In taiwan salaries might be low but corruption is high and alive in many companies (public and private).
If The government wants to effectively fight corruption, they will have to significantly increase the salaries in the private sector. And I think that’s where we are going.
Next generations’s salaries will increase while property value will lower, slowly.
I don’t think that real estate price will be the next generation main issue. With the lowest birth rate on the planet, and China knocking their door, they have bigger problems at hand.
Or they could simply reunited with China: huge population’s growth and another 10 years of real estate madness.
The getting China in to save our bacon is a fallacy for 2 reasons:
- It does not solve the underlying issue, which is an ageing population and a too big housing stock. If you were to make a big difference, you are looking at app. 1 million mainlanders buying. In that case, the locals would rebel more than what we saw at the most recent elections.
- China’s growth spurt is behind it, and the excesses in real estate and global investments are now where the risk is that they pull back and sell off - in which case they will not want to save Taiwan’s property bubble anyways.
If they can afford a 15M$ down payment, I think they will be just fine!
Can we still borrow 100% in USA or Europe?
[quote=“Mr He”]The getting China in to save our bacon is a fallacy for 2 reasons:
- It does not solve the underlying issue, which is an ageing population and a too big housing stock. If you were to make a big difference, you are looking at app. 1 million mainlanders buying. In that case, the locals would rebel more than what we saw at the most recent elections.
- China’s growth spurt is behind it, and the excesses in real estate and global investments are now where the risk is that they pull back and sell off - in which case they will not want to save Taiwan’s property bubble anyways.[/quote]
When the Kuomintang moved to Taiwan, they were around 2 million and the taiwanese population at that time was significantly lower than today. Yes taiwanese tried to revolt but in a good efficient dictatorship it’s hard to succeed.
I’m sure that China has lots of experience in that matter. Those 1 million flats would be selling like hot potatoes ^^
That they have put in 50% into equity already covers some of the risk, but it’s also a heavy financial load to carry, is it really 80k/mth for 15 million ntd at current interest record low interest rates (that would be principal and interest obviously)? Putting all their eggs in one basket like that is a bit nuts, unless they got money from family, which is often the case here.
They are weekenders I think, take the bus to Luodong, visit the beautiful sports park and night market or stay overnight in a nice guesthouse or visit Suao, the bus is cheap and comfortable and takes less than an hour usually. Great and easy day trip from Xindian! I would love to commute from
Luodong everyday if it was a bit closer. Looks like heaven compared to the gritty west coast. All the restaurants are cheap too, and rent must be a pittance.[/quote]
Luodong is not very nice, save a few small pockets. Air pollution is bad too from the cement factories, agricultural burnoff and pesticide use by your neighbors with rice fields.
MM, it’s all relative 
. It certainly seems nicer than large parts of urban Taiwan and the backdrop of the mountains is pretty spectacular.
That they have put in 50% into equity already covers some of the risk, but it’s also a heavy financial load to carry, is it really 80k/mth for 15 million ntd at current interest record low interest rates (that would be principal and interest obviously)? Putting all their eggs in one basket like that is a bit nuts, unless they got money from family, which is often the case here.[/quote]
It’s a bit rude to assume that they either put all their $ in that down payment or that they got money from family.
Maybe her husband has responsibilities at work that allow him to get some “incentives”, but that wouldn’t be nice of me to say so 
But buying a 1 million US$ flat on a monthly household income of 6~7k US$, definitely rises questions…
[quote=“Markova”][quote=“Blaquesmith”]
What did I just say?
Taipei value will always be more expensive, but right now, the prices are MUCH higher. Since they are overinflated, the prices can fall a lot and still be higher that in the surrounding areas. This is how it works.
Read my previous posts in this thread if you need more info on the context I’m basing my affirmations on.[/quote]
You are still wrong.
Bigger flats will be the one seeing their ratio price/ping lower the most. Smaller price will always be better value as they will be more affordable (as a whole) and in line with the demographic trend in taipei (single or couple with no kids). Smaller flats are also easier to rent.[/quote]
The speculators often use the smaller apartments to flip and speculate, so those are the ones with the price more overinflated, and those are the ones targeted by the people who had to buy with big mortgages. If the interest goes up, there will be a surplus of small apartments, making the price fall faster. On the other hand, big properties are often bought to live in or to rent them, not to speculate (not short-term, at least). For that reason, big properties’ price is often more stable.
How do you classify a small vs. big property?
[quote=“chung”]Linkou doesn’t have any shopping, whereas Chingpu has the soon to open outlet mall, Metrowalk, Costco, and a direct train line to Zhongli Sogo. Even without the Aerotropolis, I think the new MRT opens lots of new investment possibilities for the area round the Taoyuan HSR. It’s hard to predict how places will develop, but with its steady growth in population and employment, Taoyuan, at least to my mind, is one of the safer long term investments in the real estate market.
metrowalk.com.tw/web/index.html
gloriaoutlets.com/?l=en&p=project[/quote]
Dajiang (when did they rename it?) was pretty unspectacular last I checked it out, and I absolutely will not believe they’re getting a Costco when they’re a 30 minute drive from the one in Nankan. Take promises of development with a grain of salt. How long have they been promising a Vieshow cinema in Tamsui? Since 海洋都心 number one… They’re already on 海洋都心 number three and still making the same promises, yet while Vieshow has “plans” to open a cinema there, it’s very very far from a done deal.
An MRT into Zhongli will be nice, but I think that will make prices in Zhongli proper rise more than in Qingpu, which will still have nothing but houses and a not-to-great shopping center.
[quote=“Hokwongwei”][quote=“chung”]Linkou doesn’t have any shopping, whereas Chingpu has the soon to open outlet mall, Metrowalk, Costco, and a direct train line to Zhongli Sogo. Even without the Aerotropolis, I think the new MRT opens lots of new investment possibilities for the area round the Taoyuan HSR. It’s hard to predict how places will develop, but with its steady growth in population and employment, Taoyuan, at least to my mind, is one of the safer long term investments in the real estate market.
metrowalk.com.tw/web/index.html
gloriaoutlets.com/?l=en&p=project[/quote]
Dajiang (when did they rename it?) was pretty unspectacular last I checked it out, and I absolutely will not believe they’re getting a Costco when they’re a 30 minute drive from the one in Nankan. Take promises of development with a grain of salt. How long have they been promising a Vieshow cinema in Tamsui? Since 海洋都心 number one… They’re already on 海洋都心 number three and still making the same promises, yet while Vieshow has “plans” to open a cinema there, it’s very very far from a done deal.
An MRT into Zhongli will be nice, but I think that will make prices in Zhongli proper rise more than in Qingpu, which will still have nothing but houses and a not-to-great shopping center.[/quote]
On the 31, the Costco in Nankan is a mere 10 minutes away, to be honest. Metrowalk is 5 minutes away tops. if I were to buy and live out there in a place where things were new and the transport links were good, that would be the place.
I’ve only done it on a scooter, so I was estimating time based on that. 
Looks like the European Central Bank will be doing fund injections QE-style. I wonder if the liquidity will be a saving grace for Taiwan’s housing market. (Sadly, I think it will, but I don’t have a very solid understanding of these things!)
I don’t think it will have a global effect like the US QE program, I’m guessing it will barely move the dial in Europe except juice the stock market there like in the US.
Exactly it will be interesting to invest in the European stock market.
I also wonder if a taiwanese familly with a good income could get a house loan from an European bank to purchase Real estate in Taiwan.
House loans are already extremely cheap in Taiwan, among the cheapest in the world I believe.
But they don’t offer fixed rate.
If you borrow in Euro now, you are daft. The rate might be fixed in EUR terms, however the euro will over the next 20 years rise. You are better off borrowing in the currency you will earn the funds to pay off the loan. Really.