Freehold or Leasehold Condo?

When you want to own a asset in Singapore, it is foremost to note if the asset you are buying a freehold or leasehold. The main unlikeness is the legal possession of the property.

Freehold

A freehold asset means that the buyer owns the condo and the title deed of it. The buyer will only pay the mortgage and not a monthly rent. Freehold condos are more high-priced than leasehold ones as you own the asset for as long as you want.

Leasehold

There are any types of leasehold properties in Singapore - 99-, 999- or 103- years. After the lease expires, the legal possession of the asset will go back to the government. However, the main advantage of this is that the price of the asset is often economy than the freehold one.

If your intention of buying a condo is stay in it for at least ten to twenty years, you might like to reconsider a freehold condo. This will ensure that the value of the condo will not depreciate in value the longer you stay. You can also leave it for your children when you grow old.

If you are generally curious in capital appreciation and will be selling off the condo in just a few years, you might be best off buying the leasehold condo since the outlay of first capital is lesser allowing a greater leverage.

Last but not least, always plan ahead and make sure you have keeping power when prices start to go south if you are beginning off with a small capital.

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