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 Leasehold vs. Freehold - crossing point?

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mthc
post Jul 29 2016, 11:08 AM

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QUOTE(wkkor @ Jul 29 2016, 11:07 AM)
hm.... i also have doubt between FH vs LH. Let say government want to acquire the land, FH also can't stop it. If the government has no plan on the land, government will let us to renew.

In term of value, of course FH always better than LH... Meanwhile, you need to consider difficulty to find affordability of potential buyer between FH & LH.

Since you just plan to stay for 5~10 years which means left LH 89~94 years, buyer still able to get loan in this condition.
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EXACTLY.

And in terms of value. If you happen to find a gem on a LH land, you should not skip it for a stubborn mentality of sticking only to FH. Condos sitting on Kayu Ara and KD have already showed it success over the years being sitting on a LH land.

Anything above 30 to 40 years(diff banks have diff criteria) for a LH tenor can get up to 90% loan.

This post has been edited by mthc: Jul 29 2016, 11:12 AM
wkkor
post Jul 29 2016, 11:47 AM

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Actually this question is very subjective... is that 500sf mean to you? Do LH 27% cheaper mean good deal to you vs FH?

Or you may need to do some research, find those area nearby have FH + LH and compare their selling price whether the $/sf different is more than 27%
tko11
post Jul 29 2016, 11:53 AM

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No clear winner, I would go for the one I prefer which best suit for my staying purpose, as said intention is for own stay.
Ero-Sennin
post Jul 29 2016, 12:02 PM

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Go on what your wallet, brain and heart tells you, at the end it is yours to judge whether LH or FH worth it or vice-versa.

Everyone here have their own preferences.
C&D
post Jul 29 2016, 01:33 PM

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assuming for own stay, environment must fit your lifestyle, never mind lh or fh.


Jagalat
post Jul 29 2016, 01:37 PM

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QUOTE(wkkor @ Jul 29 2016, 12:07 PM)
hm.... i also have doubt between FH vs LH. Let say government want to acquire the land, FH also can't stop it. If the government has no plan on the land, government will let us to renew.

In term of value, of course FH always better than LH... Meanwhile, you need to consider difficulty to find affordability of potential buyer between FH & LH.

Since you just plan to stay for 5~10 years which means left LH 89~94 years, buyer still able to get loan in this condition.
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Side question to all gurus/daikors/daijers/bosses, any one has a list of freehold KV residential properties (houses, terraces, banjialow, apartments, condos, service suites, or property building) being acquired by Gov? Pls advise the link(if any)? If not, pls spell the projects/ptoperties you can recall..
Thank you very much.
dawnrose
post Jul 29 2016, 02:18 PM

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I'm conservative and play safe. 500sqft is not too big to start with and when u familiar with a smaller place u no longer feel it. 1800sqft is not that small. Small difference in size potential big difference in the future. Since location is the same no comparison of LH in a great location because both are. I prefer to look at other details ie assessibilty, feng shui (personal opinion) and if can surrounding neighbours becoz you not only buy a house but also a home.
BEANCOUNTER
post Jul 29 2016, 02:33 PM

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QUOTE(Jagalat @ Jul 29 2016, 01:37 PM)
Side question to all gurus/daikors/daijers/bosses, any one has a list of freehold KV residential properties (houses, terraces, banjialow, apartments, condos, service suites, or property building) being acquired by Gov? Pls advise the link(if any)? If not, pls spell the projects/ptoperties you can recall..
Thank you very much.
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even if govt wanted to acquire yr fh property, it got to be at arms length transaction, meaning market price lah...
you may not have the right to reject the offer becos the purpose was supposed to be benefit to public at large...at least you are not given up your property chip chip....but that doesn't mean govt cant build a flyover over your house or very close to your house.

on the other hand, on lishold property, govt just need to wait for lease expired nia and you dun get any compensation at all....although klang valley at large still doesn't have many lishold properties that reached 99 years yet.

This post has been edited by BEANCOUNTER: Jul 29 2016, 02:34 PM
Ero-Sennin
post Jul 29 2016, 02:37 PM

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Gasing Hill lease been renewed. Ampang Park FH been forced to give up their land for MRT construction.
godhand
post Jul 29 2016, 02:47 PM

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Like bean said FH > LH anytime in the same location, residential type
It highly depends on your mindset, if you are single and do not have to worry for your descendants. Then it doesnt matter la.
As long as your yield > loan, i see no problem in LH, but bear in mind it depends very much on your tenant quality.

LH is cheaper but take note this is Malaysia not UK or US. The mindset here is different.
and because of that mindset LH depreciates greatly over time
wkkor
post Jul 29 2016, 02:49 PM

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QUOTE(Jagalat @ Jul 29 2016, 01:37 PM)
Side question to all gurus/daikors/daijers/bosses, any one has a list of freehold KV residential properties (houses, terraces, banjialow, apartments, condos, service suites, or property building) being acquired by Gov? Pls advise the link(if any)? If not, pls spell the projects/ptoperties you can recall..
Thank you very much.
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Juz know exist of such law, like this: http://www.theedgeproperty.com.my/content/...cquisition-laws

btw, i am juz small potato, maybe i am wrong. tongue.gif
Fortezan
post Jul 29 2016, 03:21 PM

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For own stay, it is better you look at other factors such as facilities, furnishing, management, neighbour and surrounding...etc other than just FH vs LH
cherroy
post Jul 29 2016, 03:37 PM

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The prime consideration is the property itself especially for own stay one.

Get the one better in term of quality, how it is maintained, and make your living life comfortable one, which is invaluable in term monetory.

LH or FH is a secondary issue.

Even 2 properties are adjacent, it can be maintained differently, which determine the value of property especially for highrise whereby the key issue of its value not come from LH or FH, but how it is maintained in a top notch condition.



SUSempatTan
post Jul 29 2016, 03:53 PM

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Actually, what's d problem with LH, really?! If lease is up, just renew it. In pj, that costs only $1000 for another 99 years.
A good property is a good property. LH, FH, wateva hold don't really matter. What matters is how much money are people willing to pay for it. All else can b negotiated.
(If malay rizab land, above comments is void smile.gif
teNtiOn
post Jul 29 2016, 03:59 PM

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if it's condo just buy the one you like more.. who willing to stay in 100+ years old condo if not maintained properly?

This post has been edited by teNtiOn: Jul 29 2016, 03:59 PM
gst1209
post Jul 29 2016, 04:09 PM

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anyone know how to calculate LH renew price ? thanks
Jagalat
post Jul 29 2016, 04:12 PM

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QUOTE(Ero-Sennin @ Jul 29 2016, 03:37 PM)
Gasing Hill lease been renewed. Ampang Park FH been forced to give up their land for MRT construction.
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freehold residential next to/adsjecent to Ampang park also affected?
Jagalat
post Jul 29 2016, 04:13 PM

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QUOTE(BEANCOUNTER @ Jul 29 2016, 03:33 PM)
even if govt wanted to acquire yr fh property, it got to be at arms length transaction, meaning market price lah...
you may not have the right to reject the offer becos the purpose was supposed to be benefit to public at large...at least you are not given up your property chip chip....but that doesn't mean govt cant build a flyover over your house or very close to your house.

on the other hand, on lishold property, govt just need to wait for lease expired nia and you dun get any compensation at all....although klang valley at large still doesn't have many lishold properties that reached 99 years yet.
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Any list, pls..
Jagalat
post Jul 29 2016, 04:15 PM

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QUOTE(wkkor @ Jul 29 2016, 03:49 PM)
Juz know exist of such law, like this: http://www.theedgeproperty.com.my/content/...cquisition-laws

btw, i am juz small potato, maybe i am wrong.  tongue.gif
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Didn't see any affected freehold properties list from the link. Can enlighten further?
CK15
post Jul 29 2016, 04:17 PM

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QUOTE(empatTan @ Jul 29 2016, 03:53 PM)
Actually, what's d problem with LH, really?! If lease is up, just renew it. In pj, that costs only $1000 for another 99 years.
A good property is a good property. LH, FH, wateva hold don't really matter. What matters is how much money are people willing to pay for it. All else can b negotiated.
(If malay rizab land, above comments is void smile.gif
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I might be wrong, the rm1000 only applicable for old kampung baru type of leased hold house.

Imagine, what premium to be paid 70 yrs later...?


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