Real Estate Much Cheaper in the Future?

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Re: Real Estate Much Cheaper in the Future?

Postby bismarck » 08 Feb 2012, 23:32

Omniloquacious wrote:At current interest rates, if you could get a loan for the whole purchase price, you'd be paying only around NT$14,000 a month to pay it off over 20 years.

And now that you're no longer a foreigner, getting a loan should be a synch.

Waiting for July, mate. That's when I can get my ID. Should be all good then.
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Re: Real Estate Much Cheaper in the Future?

Postby cyborg_ninja » 09 Feb 2012, 00:58

headhonchoII wrote:Don't the construction companies work with banks to offer lower interest deals/sweeteners, might have been what happened there? But interest rates are really very low in Taiwan anyway. Which is precisely the reason why property prices have increased so much. It's all about the cheap money.


Blame the central bank on the money supply. Taiwan has a deflation of .8% a year.
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Re: Real Estate Much Cheaper in the Future?

Postby Staatsbankrott » 09 Feb 2012, 01:05

headhonchoII wrote:Don't the construction companies work with banks to offer lower interest deals/sweeteners, might have been what happened there? But interest rates are really very low in Taiwan anyway. Which is precisely the reason why property prices have increased so much. It's all about the cheap money.



Hi my englisch is not that good, but I would say that the house prices are so high because banks owning them and if they listing them high it looks nice in their balance sheets. Even if somebody take debt and buying it, the house belongs to the bank until it´s paid off.

If I would buy a house here, I would do it like the real estate agents. I would conjure me a shadow in the face like they do and put signs everywhere in the streets with my phone number on it, like " I´m looking for a house in this area / price up to 3 000 000NT / 5 rooms / 50 pings " and I guess you will get a lot of phone calls from private people and companies. Taiwanese people like to double the prices, but not with me.

And because of rising prices, I think house prices here will drop in long term because of the demographic. Many buildings are empty and less couples are getting kids, means in 20 more years you will have more houses because they will keep going build houses to stimulate the dead local economy and less people who will buy a house later.

I also planned to buy a house but I thought about it. A Strong NT$ means high housing prices. So I put my money into USD first at 28.85 per USD and wait until Taiwan facing the truth. Average Dollar price was always 32/33 best was at 34/35.

3 000 000NTD / 29.5 = 101 500 USD x 33 = 3 350 000 NTD @ droping house prices.

To me, Taiwans economy outlook is not good and they have to import everything. Sooner or later the NTD will follow the rules.
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Re: Real Estate Much Cheaper in the Future?

Postby *monkey* » 09 Feb 2012, 09:46

Staatsbankrott wrote:
Hi my englisch is not that good, but I would say that the house prices are so high because banks owning them and if they listing them high it looks nice in their balance sheets. Even if somebody take debt and buying it, the house belongs to the bank until it´s paid off.


Actually, a bank doesn't own a mortgaged house and the value of such a house does not appear on a bank's balance sheet. In Taiwan, there is no way for a bank to directly take ownership of a mortgaged house unless the home owner agrees to transfer the title of the property to avoid foreclosure (a procedure called deed in lieu). This procedure allows the homeowner to hand over the keys and walk away from their debt.

In the case of a foreclosure, the auction is executed by a court, and it is the court that sets the auction price for the house. The court then distributes the proceeds from the house sale in order of precedence - taxes and court costs first, and then bank claims. If there's any money left in the pot at the end of the proceeding, it goes to the former home owner.
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Re: Real Estate Much Cheaper in the Future?

Postby Kea » 01 Apr 2012, 23:35

Just wondering if anyone has any idea the cost to build an apartment building. Let's say the land is roughly 200-250 pings and you wanted to build 2 blocks (or anything) on that with landscaping, what does that typically cost construction companies. Further, how would they structure their cost/investment to get the best payoff-units built etc.

ideas:
http://t0.gstatic.com/images?q=tbn:ANd9 ... cqELH1EGjY
http://www.singaporeexpats.com/singapor ... rnhill.htm
http://www.newcondo.sg/91-marshall
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Re: Real Estate Much Cheaper in the Future?

Postby PigBloodCake » 01 Apr 2012, 23:51

bismarck wrote:
Omniloquacious wrote:At current interest rates, if you could get a loan for the whole purchase price, you'd be paying only around NT$14,000 a month to pay it off over 20 years.

And now that you're no longer a foreigner, getting a loan should be a synch.

Waiting for July, mate. That's when I can get my ID. Should be all good then.


Oooooo.....you'll be a full blown Taiwanese in July. Congrats Bismarck :thumbsup:

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Re: Real Estate Much Cheaper in the Future?

Postby finley » 02 Apr 2012, 00:45

Just wondering if anyone has any idea the cost to build an apartment building. Let's say the land is roughly 200-250 pings and you wanted to build 2 blocks (or anything) on that with landscaping, what does that typically cost construction companies. Further, how would they structure their cost/investment to get the best payoff-units built etc.

It's not a lot, especially if they're experienced and can manage the logistics well. Most building companies here seem to consider it worthwhile to go ahead if they can pre-sell 1/5th of the units, so I guess that gives you some idea. A big part of the cost of the building is the land it stands on.
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Real Estate Much Cheaper in the Future?

Postby headhonchoII » 02 Apr 2012, 08:23

Tigerman wrote:
Muzha Man wrote:I thought in these cases the old tenants got a new apartment in the rebuilt buildings?


In many cases, it is the owners, rather than the tenants, who get a new apartment (or two). In some cases, the owners (if they are living in the old place) are also given a generous stipend for rent of a temporary place while the new building is being constructed. I suppose it depends somewhat on the value of the land at the particular location and who owns the property there.

Muzha Man wrote:I personally know of several incidents where residents have rejected a renewal proposal.


I think, but cannot cite the law, that now, if 70% of the owners agree to a renewal project, the minority 30% cannot prevent such project.

Anyone know for certain?


Predictably one or two families kick up a stink about their crappy gongyu getting demolished and the Taipei government has to review it's policies, this after all the neighbors already agreed to redevelopment. But where will we go? We couldn't possibly live in luxury apartment in a modern city and get well compensated for our inconvenience . No we need to live in our ancestral 40 year old tenement building.
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Re: Real Estate Much Cheaper in the Future?

Postby Icon » 02 Apr 2012, 10:34

Strangely enough, the curent stink is being raised because some tenants say that the units they rent now give them more income than whatever the city/developers give them in the future (???). Hence, an elderly 80 years old livelihood is threatened. Plus one thing is demolishing for transportation proyects -say, in Xindian's 14Chang- or razing for a private development -Wang family case.

According to the latest news, it is 3/4 agree, the rest have to go. My area is already in trouble as we have over 50% agreeable, AFAIK.

At one million per ping, everything goes!
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Re: Real Estate Much Cheaper in the Future?

Postby SillyWilly » 02 Apr 2012, 10:34

Gross rental yields in Taiwan are astonishingly low (at 1.57% vs Hong Kong at 3.23%) and can be a good indicator that real estate prices are fantastically overvalued. The main difference between Taiwan and HK however is that rents keep inflating (at a faster pace than real estate) in HK leading to a higher yield even as the underlying asset bubble grows.

To get Taiwan to the same yield, rents need to double, OR PRICES NEED TO DROP BY 50%. Anyone care to wager which one will happen first? :ponder:

Disclaimer: Gross rental yields for Taiwan are based on country wide data. Obviously I'm not suggesting prices will drop by 50% in Taipei, but by maybe 20%-30%.

Link: http://www.globalpropertyguide.com/Asia ... ent-yields
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