Taipei-The majority of salaried employees in Taiwan cannot afford to buy a home and spend about 25 percent of their annual pay on rent, according to a survey released Friday by 1111 Job Bank.
Furthermore, only around 12 percent of the so-called generation rent -- people who live in rented accommodation because of high property prices and low salaries -- are planning to buy a home in the near future, the poll showed.
It found that 80 percent of Taiwan's salaried workers have no means of buying a home, and the amount that they pay for rent averages about 25 percent of their annual salaries.
According to the job bank survey, 64.2 percent of Taiwan's salaried workers who rent homes spend an average of NT$9,902 (US$330) per month on rent, which is about 24 percent of their income.
In Taiwan, 25.2 percent of its 1.29 million salaried employees earn NT$22,000 to NT$23,000 per month, 1111 Job Bank Vice President Daniel Lee (???) said, citing data from the Directorate General of Budget, Accounting and Statistics (DGBAS).
Those people are in a hard place between high housing prices and low wages, Lee said.
Meanwhile, workers who have bought a home are under strain from their mortgage payments, he said. In that category, those who earn NT$710,000 to NT$750,000 per year are carrying the heaviest burden as their mortgage payments consume 55 percent of their annual income, Lee said.
Against this backdrop, 88 percent of salaried employees living in rented accommodation have no immediate plans to buy a home because they cannot afford the mortgage payments, they think such a move would adversely affect their lives, or they are hoping that home prices would fall, according to the survey.
The 1111 Job Bank survey was conducted online among its members Nov. 9-23, obtaining 2,784 valid samples. It had a confidence level of 95 percent and a margin of error of 1.86 percentage points.
Source: Focus Taiwan News Channel