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Taipei is a big city, but it's not a sprawling metropolis. You can get out of town pretty easily and head up to the north coast (surfing, scuba, seafood), down to the central mountains (hiking, cycling), south coast (great combination beach/night market/party scene), or Hua'lien (surfing, cycling). Taiwan's West side is serviced by a new high-speed electric rail line and other areas are accessible by regular electric train. There are high-quality sealed roads everywhere if you have a car, motorcycle, or scooter.
The island is aggressively pursuing nuclear power, with 6 light-water reactors on-line, so the skies are clear of pollution(at least compared to Chinese and American cities). Being right on the tropic of cancer, the temperature is pleasant year-round--especially on the West coast, which has a Hawaiian-like climate and feel. Taipei can get cold and rainy in the winter and sticky in the summer. The metro and busses are fully air-conditioned (unlike Hong Kong and most Chinese cities), clean, and efficient. The elevated MRT line has trouble when it rains heavily, since they switched to an Italian rail car, but unless you end up living on that line, you won't use it except to get to the Zoo and the tea places in the mountains.
Taiwan doesn't have the stunning vistas of say, Mt. Fuji or far western China, but there are some beautiful mountains, coastlines, and Taipei itself has some pretty green areas. The city MRT gondola goes up in the hills and services resturants and tea shops with great views of the city downtown and 101.
Cost of living is fairly low, but housing (as in purchasing) is expensive, especially near MRT stations. There are few foreigners around. They are concentrated in the downtown and near the main train station. Also, there are some expats living on the NE coast and around Hua'lien.
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