Archive for April, 2017

Housing transaction costs are really high!

Saturday, April 22nd, 2017

http://www.economist.com/node/9688013
http://www.umac.mo/fba/irer/papers/past/vol11n1_pdf/Article%207.pdf

For Singapore, it’s around 5%. In Taiwan, it’s north of 10%. This is a ridiculous hurdle for an investment. If you bought an apartment in Singapore and pay a 20% downpayment, transaction costs wipe out 5% of asset value┬áright away, setting you back 25% of your equity.