Can You Only Afford 'Old and Small' Homes in Taipei and New Taipei with an 800,000 TWD Salary? Expert Calculates the Limit: These 4 Areas Offer 2-Bedroom Apartments

Housing prices in Taiwan have been rising year after year, and the high cost of real estate and living expenses has made many young first-time homebuyers hesitant. Is it possible for salaried workers earning 800,000 TWD annually to purchase their first home? And how should they assess their personal affordability limits? Well-known financial expert 'Gu-Ren Ashun' recently posted on Facebook, offering a detailed financial analysis of homebuying for those earning 800,000 TWD annually. He highlighted three key points for first-time buyers and suggested that instead of focusing solely on the Taipei-New Taipei (Double North) area, buyers should consider these four other counties.

How much can you afford with an 800,000 TWD annual income? Expert's calculation: Monthly mortgage around 27,000 TWD

Gu-Ren Ashun shared that a friend earning about 800,000 TWD annually wanted to buy their first home but was unsure what price range they could afford. He helped run a simple financial simulation: assuming the purchase of a property priced at 8.5 million TWD. A down payment of about 1.7 million TWD (approximately 20%) would be needed, with a loan amount of 6.8 million TWD. With a current mortgage interest rate of about 2.5% and a 30-year repayment term, the average monthly mortgage payment would be around 27,000 TWD.

An annual income of 800,000 TWD translates to a monthly income of about 67,000 TWD. A monthly mortgage of 27,000 TWD accounts for approximately 40% of monthly income. As long as employment is stable, personal credit is good, and there are no additional debt burdens like car loans or consumer credit, and the buyer qualifies as a first-time homebuyer, the chances of successfully securing a mortgage from a bank are generally quite high.

Just because the bank is willing to lend doesn't mean it's right for you: Expert warns—don't invest all your savings

'Just because the bank is willing to lend doesn't mean it's the best choice for you,' Gu-Ren Ashun cautioned. Buying a home isn't just about preparing the down payment; there are also significant expenses at the time of handover, such as deed tax, notary fees, and subsequent renovation, furniture, and appliance purchases. Therefore, in addition to having the basic down payment ready, it's essential to reserve an 'emergency fund'—never invest all your savings into the home purchase.

For assessing personal homebuying ability, Gu-Ren Ashun proposed three core principles:

- Control monthly burden: Keep the monthly mortgage payment around one-third of total income. - Prepare sufficient funds: Have at least 20% for the down payment and set aside additional funds for incidental purchase-related expenses. - Maintain quality of life: After buying a home, life should still be manageable—don't let yourself be chased by mortgage payments every month.

Can you buy a home for 8.5 million TWD in the Double North area? For first-time buyers, 'get what you can first' is more realistic

Addressing the common misconception among many first-time buyers who want their first home to be 'perfect right away,' Gu-Ren Ashun admitted that with a budget of 8.5 million TWD, options in the Double North area (Taipei City, New Taipei City) are indeed very limited. However, if buyers shift their focus to areas like Taoyuan, Taichung, Kaohsiung, or Tainan, there's still a chance to purchase a 2-bedroom used apartment with a floor area of about 20 to 30 ping.

Gu-Ren Ashun emphasized that he actually supports the practical approach of 'first buying a home you can afford, then upgrading to a more ideal one as your income and assets grow in the future.' A mortgage typically lasts 20 to 30 years—rather than feeling anxious every day about a heavy mortgage burden, it's better to let your home become a tool to help you accumulate assets, not a source of stress that destroys your life. 'Being able to afford it is important, but buying with peace of mind is even more important!'

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