Mother Theresa wrote:Toe Tag wrote:I found this ballpark in another thread.In Taipei City, mortgages seem to be broken down into 2.5 million chunks. So the first 2.5 million may be a priced at 2.3%, but for only 2 or 3 years. After then, it will rise to, say, 2.5% for the rest of the term.
For you ballpark calculators, this chuck would translate into approximately NT$ 14,000 per month thru the term of your mortgage. I'm being liberal with the figures here, but the important takeaway is that you should expect to shell out approximately 14 G's (NT$ 14,000) for every 2.5 million that you plan to borrow.
Following this rule of thumb, if you plan to finance 5 million bucks, then you should plan to lay out NT$ 28,000. Et cetera, etc.
That rule of thumb appears to be pretty outdated and useless. Either that or my wife's a far better negotiator than I realized. That's a ballpark estimate of monthly mortgage payments based on 2.3% or 2.5% interest rate. As I said, our loans are at 1.325% and 1.85%, so our payments will be substantially lower than that guy figures/d.
Moreover, I thought you wanted to know what percent of the purchase price banks will lend these days in TAiwan, a different question altogether.
As for MLS, I believe you're correct and for some reason Taiwan lacks that great resource that is available in the US.
I like the way the ballpark estimate was phrased. I'd like to hear that same sentence with new numbers for the new interest rates. And I'd love to find a chart of historical mortgage or interest rates.
What are adjustable mortgage rates in Taiwan tied to? LIBOR? (ok, LIBOR was a small joke, I am now told that adj. rates are tied to the central bank of roc rates, maybe that is the one basis here period.)
Again, I agree with your reasoning further above: nobody knows what will happen with housing prices. But I feel the same reasoning applies to interest rates too. I suppose if they get too high the government would face a popular revolt. But if they double then that guys ballpark estimate will become true again. Anyway, they seem to keep their interest rates and exchange rates under control here. Though one PRC missile lobbed over the island might take events out of their hands.
Even at the low rates here, I still think those teaser rates are dangerous. They account for some of the mortgage meltdown in the USA. Maybe accept it, but do the math, and set aside some of the extra cashflow for a rainy day is my advice.