Why you should not care about the housing prices in Taiwan

So these days the linked article below is highly popular among the Taiwanese FB users, basically stating 2 true facts:
1.Housing prices in Taipei are ridiculously high.
2.Salaries are ridiculously low.

No disagreement there, but I just cannot agree with the statement that ‘because the housing prices are high the country is doing wrong to the young generation’.

I know that owning accomodation is probably one of the most important status symbols in Taiwan. But please look at it from a different perspective.

What if it does not matter at all if you own an accomodation or not??

The only thing which buying a house does to you (besides fulfilling the Taiwanese definition of success) is having a big debt for decades, which means a large portion of your current and future income being locked for paying off the debt, plus interest, which usually leads to more risk averse behavior in order to have a stable income to afford the debt.

If you exclude “owning a house” out of the success equation, the formula leaves much more space for entrepreneurship, following and realizing dreams, and all that stuff which makes you feel you have more freedom.
Of course when you have made enough money and had your success you can go ahead and buy a house, but think about this when you are 45 or 50, don’t worry about it now.

Until then, rent a place. It is better than committing to paying for 20 or 30 years and then having a 30 year old house. Rent a place and move out when you don’t like it anymore. Rent a place and when you get a salary raise you can move into a better place. Rent a place and you don’t have a crazy financial committment which slows you down.

Agree? Don’t agree?


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