Buying a 6 million NT dollar property in Taiwan.
Assume: 7% longterm mortgage rate and borrowing of 4 million dollars. The deposit you provide from your own savings.
On a 20 year mortgage the property will cost a total of 9,441,926 NT not including stamp duty, rates, transaction fees or property maintenance. The property would then be likely to be valued at less than the original purchase price given the rate of devaluation in Taiwan of property values.
The monthly mortgage repayments would be: 31,008NT
Alternatively you could pay rent on the same property for 20 years. If you rented the same place for 20 rears at 20,000 NT per month. The whole experience would cost you 4,800,000. There would be no transaction fees or property maintenance or rates. If you were then to invest your deposit at 7% with interest reinvestment the same 2,000,000 would be worth 8,000,000 in 20 years time.
To compare the stratergies:
Buying: cost: 9,441,926 + House (4 to 5 million)
Renting: cost: 4,800,000 + portfolio (8,000,000)
In addition to this the renter could reinvest the 4,641,926 NT dollars that they didn't spend on buying the house. Assuming they invested fairly conservatively they could at least hope to improve on that amount by about a third. In the end the renter has spent 4,800,000 but saved and invested 6,189,234 + 8,000,000 = 14,189,234
The buyer had spent 9,441,926 and saved between 4 and 5 million depending on the house valuation after 20 years.
These calculations are based on the ANZ mortgage calculator. Without capital gain in a properties value and the disparity between rental prices and mortgage repayment rates buying a house in Taiwan is financial suicide.