Freehold vs Leasehold

[dasimond]

In Singapore, Freehold property is usually not located near to any MRT station, if they do, the pricing is usually very high.

Actually if you are looking in at rental point of view, a leasehold property will have a better rental yield as the purchase price is lower and tenant will not pay more even if it is a freehold property.

If you are looking into holding it for next few generation, of course a freehold will suits you better. Other then holding it dearly, price movement will not be great as the location is usually off.

So is your call, freehold or leasehold.

 

[dasimond]

One thing i miss out is, in Singapore, there are public housing by government (HDB). The public housing is all 99 years and majority of people staying in this actually make tons of profit if they were to sell it today. My mum bought a flat 30 years ago at $30k, today, it can fetch $400k.. that is almost 10 folds profit for a 99 year leasehold property.

Therefore, many peole still go for leasehold as the price is more affordable and profit can be good as the location is usually more convenient.

 

[lkybd]

Leasehold is better if you are thinking of making a profit from your investment, because entry price is lower. And does not really matter whether leasehold or freehold for legacy planning, because ultimately, the property will be sold off.

 

[Longterminvestor]

How does the leasehold system work in Singapore? At what point does the length of lease left begin to impact the value of the property?

 

[diyhelp]

In the UK I think under 75 years left on a lease and it will start to have a bigger impact on the value.

 

[PostBrexitInvestor]

What rights do you have in Singapore to renew your lease or even buy the freehold?

 

[Longterminvestor]

What is the average price/profit on a leasehold compared to a freehold?

 

[Jatinder]

In UK, Freehold ownership means you own the property outright forever. Leasehold ownership means you only own the property for a set number of years after which it reverts to the freeholder.

 

[Jatinder]

When you buy your first house or any property, these are the two different terms you will notice. In the UK, this is two separate forms of homeownership that exist – freehold and leasehold. Freehold is a term for someone who owns the freehold of the property owns the property and the land on which it stands. While the leaseholder does not own the property or land on which the property is built. A leaseholder basically rents property from a freeholder for an assigned number of years, decades, or centuries.