Can funds from Taiwan’s real estate development be transferred overseas? Going to the United States to be a landlord is not as profitable as expected, and the cost will be halved

Taiwan’s housing crackdown policy continues, and part of the property purchase funds are diverted overseas. But is it really more profitable to work as a renter abroad? American real estate experts revealed that after deducting property taxes, insurance, management fees and other expenses from rental income in the United States, half of the rent is actually eaten up by costs.

The central bank has implemented the seventh wave of selective credit controls since September 2024, and the domestic housing market has cooled down. Although it has relaxed the upper limit of second home purchase loan for natural persons to 70% since September 18 this year, the grace period is still not allowed. Changes in the investment environment in the domestic real estate market have also led some high-net-worth groups to shift their funds to overseas real estate markets such as the United States.

Zhang Weibo, founder and general broker of Ameriway Realty and founder of Dingsheng Financial Group, analyzed that taking a two-bedroom apartment in the United States as an example, it can collect rent of US$2,500 per month, and the annual rental income can reach US$30,000.

Property taxes, insurance and management fees are hidden costs

However, further breaking down the cost of renting, you must pay real estate taxes, house insurance, community management fees, and house management fees every year. For every 100 yuan in rent received by the landlord, half of it is used to pay for holding and management costs. This does not include rental losses during the period when the house is empty, as well as additional expenses such as equipment failure and house repairs.

It is worth noting that the real estate tax systems of states in the United States are different, and home insurance costs will also vary depending on the region, building conditions, and coverage content. For homeowners who have lived in Taiwan for a long time, if they cannot handle leasing, rent collection, maintenance and other matters themselves, entrusting local operators to manage their houses will also increase the cost of ownership.

Zhang Weibo pointed out that for overseas property buyers, in addition to annual rental income, such housing management and additional repair expenses will also affect the return rate during the holding period.

Chen Yangzhi, deputy director of the Kaohsiung City Agents Association, suggested that for Taiwanese buyers interested in cross-border property purchases, in addition to comparing local housing prices and rental prices, they should also pay attention to hidden risks such as holding taxes, exchange rate fluctuations, overseas rental income tax burdens, and transaction costs for future house sales.