Buying a house in Taiwan can be confusing and stressful. It is one of the most important decisions you will make in your life. To even consider buying a house in Taiwan, you have probably lived here for years, so many of the things I will mention in this blog may not be new to you.
I have spent quite a few years looking for houses and saving money for a down payment, as well as figuring out all the costs and other factors involved in purchasing the right house. I have created this guide and FAQ to help people understand the buying process, finding the right house, and saving the right amount of money needed to make a move. The following is my personal insight from looking for houses mainly near Taipei City.
Tips when looking for a house to buy:
Finances: Find a good bank (找一個好的銀行): Trying to convince an overseas bank to give you a loan for a house in Taiwan is near impossible, so you will probably have to turn to a local bank. If you already work in Taiwan, which you probably do, you can first turn to the bank that remits your salary every month, because they will have your financial records already. Taiwan does not really have a credit system, they just rely on your salary amount and current debts. The high down payment rates reduces risk for the banks. Every banks interest rates and policies for foreigners are different, so you might want to compare banks if you think you are getting a bad deal on a loan. You can see a comparison of loan rates on 591.com. Also, be sure to have the bank run an appraisal of the house you want to buy before you buy it, this can also serve as a bargaining chip for price negotiations. Learn about loans (貸款):
There are certain house types that you cannot take a loan on, which is why they are usually cheaper. Unless you have tons of cash, you won't be able to buy one, so don't bother.
Total cash needed up front: 3,200,000-3,920,000 NT Just so you know, in addition to the down payment, you need about at least 400,000 NT for other expenses related to buying the house before you can move in comfortably. This will be less if it is a new house. Estimated fees and taxes for buying a new 9,000,000 NT house (conservative calculation):
Total cash needed up front: 2,120,000-2,540,000 NT Just so you know, in addition to the down payment, you need about at least 400,000 NT for other expenses related to buying the house before you can move in comfortably. This will be less if it is a new house. As you can see, a new house with the same list price is going to cost you less cash up front than an older house. Estimated interest payment for buying a 25 year old 9,000,000 NT house with 30% down payment (1.19% interest rate):
Social Aspects:
Utilities:
Safety:
Comfort:
Other tips:
Frequently Asked Questions (FAQ): Q: Can foreigners invest in real estate in Taiwan? A: Yes, as long as there is reciprocal laws in your country, meaning that Taiwanese can also purchase real estate in your home country. Most foreigners in Taiwan can purchase residential real estate, but some types of land such as agricultural land is not allowed. Q: What is the average down payment ratio in Taiwan? A: 30% for older houses, 20% for newer houses. Q: What is the average interest rate for mortgages in Taiwan? A: 1.1-1.2%. Q: Should I invest in Taiwan's real estate market as a way to make money? A: No, get lost. Taiwan's real estate market is already ruined for young people just by the rich Taiwanese that already live here. Many average young Taiwanese people will never be able to afford a house, so don't make the housing market worse by putting investments in your portfolio, unless you actually want to live here. Q: What are the best websites to find apartments to buy in Taiwan? Chinese: 591.com House Fun (好房網) (pretty much every rental listing in Taiwan is in one of two websites above, but may not be up to date) Xinyi Real Estate (信義房屋) Yungching Real Estate (永慶房屋) HB Housing (住商不動產) Taiwan Housing Group (台灣房屋) Chinatrust Real Estate (中信房屋) English: Century 21 Global Tip: If you are looking for apartments in English outside Taipei, consider asking a Taiwanese friend or rental agent for help. Tip: Listings in Chinese will usually be cheaper than listings in English. Q: What are the best relocation companies? Santa Fe People First Q: Are Taiwan houses earthquake proof? A: Most houses built after the 921 earthquake have better building codes and should withstand an earthquake. Q: How much is a three bedroom apartment in Taiwan (25 ping, 83 square meters, 890 square feet)? Taipei: 10,000,000-30,000,000 NT Hsinchu: 5,000,000-15,000,000 NT Taichung: 5,000,000-20,000,000 NT Kaohsiung: 5,000,000-15,000,000 NT Q: How much does a water bill cost in Taiwan? A: For two people a water bill would be about 500-1000 NT for two months. Q: How much does a gas bill cost in Taiwan? Canned gas: About 700 NT per tank (changed about once per month) Piped gas: For two people who cook, 500-1200 NT for two months. Q: How much does an electricity bill cost in Taiwan? A: For two people, 1000 NT in the winter and about 2500 NT in the summer for every two months. Rates get higher if you use more energy. Q: How much are total utilities per month? A: For two people anywhere from 1000 NT to 4000 NT total per month depending on how much gas/water/electricity you use. Q: How much is internet/Wifi in Taiwan? A: Average internet bills are around 600 NT per month. If you want a cheap solution, use a SIM card with unlimited internet (about 400 NT per month) and connect it to a WiFi dongle. Q: How much are management fees in Taiwan (管理費)? A: Management fees can range from 500 NT for a cheap place to 3000 NT per month for a super fancy apartment complexes. The fee is a fixed amount based on the size of the apartment, usually 50-100 NT per ping per month. Q: Can you invest in Taiwan real estate and sell quickly? A: Yes but you will incur super high capital gains taxes up to 40%. If you keep a house for six years or more and sell, capital gains tax can be as low as 10%. Q: What should I look out for when looking for an apartment? A: See our tips above. Q: What are the advantages/disadvantages to buying a house new in Taiwan? A: There is no real estate agent fees, no need to spend money on renovations, and it will be nicer to live in. Also, you will be able to pay less for the down payment (10%-20%). But new houses are more expensive, and there are usually management fees, and all parking is usually paid. Q: What are the advantages/disadvantages to buying an older house in Taiwan? A: The base price is cheaper, and there are more locations to choose from. Also, old apartment buildings may not require any monthly management fees. But you will have to pay extra real estate agent fees and spend money on renovations. Also, you will have to pay more for the down payment (25%-30%). Q: What kind of furnishings do most apartments in Taiwan have? Usually there are beds, dresser, small bathroom with toilet and only a wall shower right over the toilet, an A/C unit, and a water heater. Not all apartments have a kitchen, stove, couches, or a washing machine, but most larger apartments do. Pretty much no apartments supply internal heating, ovens, microwaves, dryers, or dishwashers. This is because Taiwan winters are short, Taiwanese people don't bake, they are afraid of microwaves, they line dry clothes, and they wash dishes by hand. Q: What is the average size of an Taiwan apartment? 1 bedroom apartment: 8 ping (26 square meters, 284 square feet) 2 bedroom apartment: 15 ping (50 square meters, 534 square feet) 3 bedroom apartment: 25 ping (83 square meters, 890 square feet) 4 bedroom apartment: 35 ping (116 square meters, 1245 square feet) Q: What is the best way to clean tile floors in Taiwan? A: The best way I have found to clean a tile floor is with a good vacuum, one that scrubs on the surface. Q: What is the best way to clean mold in Taiwan? A: For normal bathroom mold, bleach should do the trick. Q: Is the water safe in Taiwan? A: Filter or boil water in Taiwan, or buy bottled water. It is not safe to drink from the tap. Taipei has the cleanest water (meaning it requires the least filtration), while more rural areas are hit and miss. Q: How am I supposed to cook in Taiwan with no oven/microwave? A: Most Taiwanese use rice cookers and gas stoves for all cooking. You can buy an inexpensive small oven or microwave if you really need one. Q: What can I expect from a typical Taiwanese house? A: Because land is scarce on this small island with 24 million people, most houses in Taiwan are apartment high rises. Houses are made of concrete. There are no yards. Most do not have carpet. Many will have a guard that will help to get your mail and provide security. Q: What are typical renovation costs in Taiwan? A: For older apartments, you will likely need to do some renovation. Things that often break or need renovated are kitchens, electrical systems, tile floors, and bathrooms, windows, doors, and furniture, and appliances in general. Labor in Taiwan is pretty cheap, but added with the cost of materials costs can add up, and you may need to spend over 1 million NT on renovations. You can avoid this if you buy a newer house. Any more questions? Leave them in the comments below! Be sure to check out our other FAQ guides to living in Taiwan here.
9 Comments
V
10/21/2020 04:15:48 pm
Nice post, very informative.
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foreigners in Taiwan
10/22/2020 10:42:49 am
Hi V,
Reply
Welly Pan
10/21/2020 06:12:37 pm
I like your blog about Taiwan. I want to ask you something about foreigner who wanto to living in Taiwan
Reply
FiTW
10/22/2020 10:43:59 am
Hi Wendy,
Reply
Vamsi Reddy
10/21/2020 10:35:29 pm
Thanks for a very detailed post.
Reply
FiTW
10/22/2020 10:45:24 am
Hi Vamsi,
Reply
Praveen
3/21/2021 09:08:45 pm
Can Indians buy a house in Taiwan. Any documents required from Indian govt/ITA?
Reply
Pablo Marmol
1/27/2021 03:08:38 am
Un piso impoluto y en condiciones perfectas. Estas son las expectativas de quienes se decantan por una vivienda de obra nueva, de la que esperan modernidad, materiales óptimos y la incorporación de las nuevas tecnologías.
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Tonyv
3/23/2021 03:27:19 am
I know it is almost impossible to open a bank account in Taiwan if I am only a tourist there. If I want to buy an apartment in Taiwan and I do not have a bank account there, how can I transfer money to Taiwan to buy it? Or I should manage it through a local lawyer?
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Author 作家We are US Expats that have extensive experience living, working, and travelling in Taiwan. In our day, we had to learn many things about Taiwan the hard way. But we have come to learn that Taiwan is one of the best places in the world for Foreigners to live. Our blog does not represent the opinions of every foreigner in Taiwan. We are just trying to help others learn more about this beautiful country. Archives 檔案
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