What to look for when buying a house in Taiwan?

[Rotalsnart]

It's interesting that on the first page of this thread (April 2009), posters were wondering if prices would bottom out later that year, and look at the market now; prices have gone nowhere but up. All those who were in the market but didn't buy three years ago are probably kicking themselves.

Earlier in this thread I encouraged people to look in Taipei's Wanhua and predicted that prices there would at least double within 10 years. In fact, the prices there have already almost doubled just in the two years since I wrote those posts. I'm confident they will continue to rise.

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It's interesting that on the first page of this thread (April 2009), posters were wondering if prices would bottom out later that year, and look at the market now; prices have gone nowhere but up. All those who were in the market but didn't buy three years ago are probably kicking themselves.

Yes, earlier in this thread I encouraged people to look in Taipei's Wanhua and predicted that prices there would at least double within 10 years. In fact, the prices there have already almost doubled just in the two years since I wrote that post. I'm confident they will continue to rise.

And the neighborhood has improved dramatically, cleaner, newer. Hope it doesn't become a posh "investors" magnet, and hence degenerate into mosquito halls.

[headhonchoII]

Most people aren't 'kicking themselves' because they simply cannot afford to buy a house,two years ago or now! This is the last bit of the boom they are pushing now. I was in China this week and they are still building houses and offices like mad, big ponzi scheme between the government and developers.

That said Wanhua was always a good bet being central and close to the central station area which is rapidly being redeveloped.

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True. When I started looking for homes, I was at least two millions short of the average. Now I'm at least half to more of the average minimum asking price of my goal place.

Everyone says Taipei's prices will never go down, might go down elsewhere... *sigh*

[Rotalsnart]

Yes, I didn't mean my post in the spirit that anyone should be "kicking themselves." Sorry if it sounded that way. My point was that even in a continuing "bubble" there are still lots of values to be picked. That was true in Wanhua then and I think it's true in some interesting corners of the greater Taipei area now that have escaped most peoples' attention, because of the herding of investment into the clusters of high rises that the developers are pushing in certain locations.

[sandman]

Ours is up to around NT$9+ million, apparently.

[StuartCa]

That sounds about right Sandman, when we looked at houses in your estate and they were all about that price and 9mil gets you a fairly low quality one.

There are flats in the block behind us and for 60 pings were asking for 9+ for dumps and the bank wouldn't lend on those.

[ceevee369]

the bank wouldn't lend on those.

If that guy in the Government will be able to push his objectives forward as receiving support, banks will no longer grant a 80% loan in the future I was told.
The threshold would be increased to 40% minimum own provision. Don't remember the correct reason behind but for sure it will be an "economy" related improvement.

[StuartCa]

the bank wouldn't lend on those.

If that guy in the Government will be able to push his objectives forward as receiving support, banks will no longer grant a 80% loan in the future I was told.
The threshold would be increased to 40% minimum own provision. Don't remember the correct reason behind but for sure it will be an "economy" related improvement.

Wow that sounds crazy unless they make a provision for first time buyers, however, I was referring to banks not lending on appartments that are built on potentially unsafe land.

[headhonchoII]

I believe the condition applies to people applying for a mortgage on a second home.

It is in the banks best interest to apply this as over-leveraged people will be bankrupted quickly during a downturn, this then becomes a write off for the bank.

The whole thing is a sick joke raising the costs of purchasing a regular property to 10-20 times average annual incomes. There is not even any boom or wave of immigration to even remotely justify this, only cheap credit and speculation and playing off cultural imperatives and fears of homelessness. The government are a corrupt lot as is clearly evidenced in the latest control yuan scandal, there are huge amounts of money changing hands in the background.