Rexx
Is it better to buy or rent a house?
Just chatting. Usually, when this rent vs. buy debate comes up, the comments section often gets heated. People posting these opinions are often called 'bagholders' or 'empty shells' because, honestly, from the pandemic until now, unless you were forced into a high point by the 'New Youth Housing Loan' late last year and got stuck, the difference is just how much you profit. Realistically, is buying a home for self-occupation a good idea at this point in time? (Don't call me a bagholder, I've already completed my 10th rental property in Taipei City.) Purely comparing rent to housing price (market price), with the current mortgage interest rate at 2.6%, an average 10 million NTD property generating less than 260,000 NTD annually in rent (less than 21,666 NTD/month) is just breaking even on interest, doing a good deed. From an investment perspective, if you want at least a 5% return on capital, considering leverage: With a 20% down payment, the return is 3.08% / With a 30% down payment, the return is 3.33% With a 40% down payment, the return is 3.56% / With a 50% down payment, the return is 3.8% X needs to achieve a 5% return on investment. The formula should be X + (Loan-to-Value Ratio / Down Payment Ratio) * (X - 2.6) = 5 So, X = [5 + (Loan-to-Value Ratio / Down Payment Ratio) * 2.6] / [1 + (Loan-to-Value Ratio / Down Payment Ratio)] This means that in the current property market with little upward momentum, properties or areas with a market return less than 2.6% are better rented than bought for self-occupation. For properties where the return on capital cannot reach 5%, investors are better off putting their money into 5% yield assets, unless there's redevelopment value or other special upward momentum.
2026.09.23 PM 3:49 · View Count 43
Lv.98
ht
People in the know say renting is better than buying, but I still want to own my own place.
Lv.77
子彈
My personal thought is to switch from buying to renting. However, the risk lies with the landlord. Risks include rent increases, furniture changes, and personality issues. Especially unauthorized entry. Although illegal, the punishment is frankly not severe. It's not like the house becomes the tenant's if the landlord breaks the rules, and you still have to move out, so any outcome is a punishment for the tenant.
Lv.79
莉雅醬
Gotta see if I have the money
Lv.71
beckylin
Thanks for sharing.
Lv.73
辛杜瑞拉
Thanks for sharing.
Lv.100
仁阿仁
Thanks for sharing.
Lv.48
米凱艾爾
Unless it's like Japan where renting and selling rights are equal, you just have to pray you meet good landlords and tenants your whole life.
Lv.73
woods
Did you post this in the wrong section?
Lv.38
卡皮風
……You need to skip the string of formulas in the middle and just look at the conclusion, otherwise, you know every character but don't understand anything when it becomes a formula……😂😂😂
Lv.36
吃蛋糕
I want to buy a house, but I don't understand the official guide.
Lv.97
小Samsam
I only saw the keyword '10 places', and I currently only have two places rented out. Amazing!
Lv.77
特路伊
I get it. Money-wise, renting is definitely more cost-effective, especially since you can't really afford to buy a place anyway. But renting means the place isn't yours, so you feel hesitant to do anything. Since it's not your home, you can't really renovate or change things. Plus, the landlord might suddenly decide not to renew the lease. I've experienced that before – the landlord sold the property, and the new owner jacked up the rent, making it unaffordable overnight. I had to find a new place...
Lv.27
汁汁寶貝
It depends on the person.
Lv.46
Anyaren
I want to buy it, but I don't have the money. The main reason isn't the return on investment, but the practical concern that it might be harder to rent out when I'm older.
Lv.22
九命
The main reason for buying a house is the fear that when I get old, I'll have money but no landlords willing to rent to me 🤔🤔🤔
Lv.55
shiowling
Thanks for sharing.
Lv.89
夜雪雪
Thanks for sharing.
Lv.82
飛天俠
Don't buy a house in Taiwan because there are uncertain factors.
Lv.36
小薇妮
I think buying a house is good. Having your own home really makes a difference. Renting means you pay rent forever and the house isn't yours, but after paying a mortgage for 30-40 years, the house is completely yours.
Lv.70
Andy舜
It mainly depends on your needs and how deep your pockets are!