We know the basic definition of LEASEHOLD. Most would be 99 lease and the property do not belong to the buyer "forever". The transfer of ownership is a little more troublesome and over the years, the lease reduces and the next buyer tend to be pushed away as the remaining lease is lesser. Given a choice for an identical location and pricing, we would no doubt choose FREEHOLD over LEASEHOLD. Unfortunately property often comes with different considerations such as entry price, size, location, timing, etc.

There will be time when choosing a property is not as simple as choosing a FREEHOLD over LEASEHOLD. I wonder how much does a LEASEHOLD status would affect your purchasing decision? Say from a sub-sale serviced apartment perspective?

for me, yes, i always prefer FH

This post has been edited by ecin: Jul 26 2013, 11:04 AM

i have the same dilemma.

From what i gather, it may not have any impact to you now but it would have an impact to your children if you decide to give them.

the thing about leasehold which i managed to find out is that if i want to renew the back to 99 years, is going to cost a bomb. if i am not mistaken, the calculation is 1/4 of the current market price x the no. of years you want to renew / 99 years...

e.g. balance of leasehold is 20 years and the property cost is RM1 million

to renew back to 99 .....RM1 mil *1/4 * 79/99 = RM200k

I will try to do everything when I am still young. I don't want any trouble with my house when I get old already so FH.

is this calculation correct?

If the price is fair, concept and location is good, I never worry of the Leasehold.

Sooner, most people would not mind the Leasehold prop as they find it much tough to find a Freehold price tag properties based on same size, similar location and aimilar development concept.

Always go with Freehold if possible unless budget constraint or for purely rental play/short-term capital appreciation.

It's the mentality that affects the difference between FH and LH. Long term wise it does affect the value. Eg. Sri Petaling vs OUG

Why people buy leasehold? because either:

1) like freehold but no money
2) like the area and area mostly leasheold props like puchong
3) dont care about props investment. just want for own stay


if you are a non-bumi not so much of a big deal. if you are a bumi, a bit of a big deal if wanna sell to non-bumi. can still sell but u have to be a bit rajin together with your lawyer etc. of course if have money, go for freehold better.

Actually is base on land value by the time u do renewer . If I am not mistake eg ; 200psf for the land value = 200x 1/4 x land size x how many years u extend / 99 .
I try not to buy LH , don't know by the time expire what is the value for that land , must be rocket high .

This post has been edited by skcJVN: Jul 26 2013, 11:40 AM

leasehold for own stay and freehold for investment

After stay in freehold landed for 14 yrs, I move to a new leasehold house.
IMO, given other factors are constant
1. Freehold landed better than leasehold landed
2. Leasehold landed better than freehold townhouse & freehold strata
3. Freehold strata better than leasehold strata

However if in the same category, leasehold landed / strata is >20% cheaper than freehold landed and strata, I will definitely buy leasehold. My leasehold property has appreciated 39% while the freehold house (in same category) only appreciate 24%. Area : Bdr Kinrara

This post has been edited by UFO-ET: Jul 26 2013, 11:48 AM

If can shorten the time of title transfer, I don't mind to get LEASEHOLD..

leasehold effect not really show yet as people tend to look only in the short term.

however, once in future where land is rare and government decide not to renew your leasehold so that it can be sold for money or for other reasons and you are old and can't sell the property for money, THEN only you will feel the bite of leasehold property

selangor now very fast bro.

True... im one of them who bought leasehold on september 2012 and till now havent get my keys...

How fast bro?

for long time price of land are quite cheap but in near future I think it will increase a lot, this will be effected so much when you renew in future.

Pls do research in other country like China, Singaopre, HK etc
When land / land supply become scarce, the reducing in the lease will be accommodated by the increase in land value.
Many houses in Singapore which has lease <30 yrs are selling like hot cakes, my Singapore client has let go a factory (with 1 acre of land) with lease remaining for 7 yrs, sold at $3.2 mil last year. The lease can't be renewed anymore. If not mistaken, China lease is only 40 yrs, our 99 yrs lease is indeed very good already
Freehold is important but not the sole factor for house. Land is more crucial

This post has been edited by UFO-ET: Jul 26 2013, 12:12 PM

If I am not mistaken, even if FREEHOLD property if government wants your land there is nothing you can do about it. They just need to compensate you. Same if government dont want to renew your LEASE, you still be compensated, but LEASEHOLD compensation might be lower. Still my opinion only.

Compulsory Acquisition Act