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> Leasehold vs. Freehold - crossing point?

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SUSbalakong
post Jul 29 2016, 04:19 PM

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Many friends and relative around me don't buy leasehold. I myself will hesitate to buy leasehold.


mingyew
post Jul 29 2016, 04:23 PM

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QUOTE(cherroy @ Jul 29 2016, 03:37 PM)
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.
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totally agree on this.

If freehold condo come with huge deficit in management account vs top notch maintenance on leasehold condo, i will choose the later one.
Ero-Sennin
post Jul 29 2016, 04:24 PM

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QUOTE(Jagalat @ Jul 29 2016, 04:12 PM)
freehold residential next to/adsjecent to Ampang park also affected?
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http://www.mymrt.com.my/en/ssp/project-info/land-acquisition

Here the list
dvinez
post Jul 29 2016, 04:25 PM

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QUOTE(3sixty @ Jul 29 2016, 07:46 AM)
Hi all

I have been offered an option for two properties:

1) Freehold, 4 bedroom, 1800sqft
2) Leasehold (99 years remaining), 4 bedroom, 2300sqft
well, if in doubt expensive one is better
same price but different size is already a guideline

there are plenty of reasons to consider, have to give and take thumbsup.gif notworthy.gif 2 cents

Jagalat
post Jul 29 2016, 04:32 PM

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Suggest TS to put up a poll...
Also reveal landed or highrise
:thumbsup:

This post has been edited by Jagalat: Jul 29 2016, 04:36 PM
Cabinda
post Jul 29 2016, 04:38 PM

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Easy lar.. fh and lh, if by comparison, after stay for 5-10yrs, and dun want to sell and want to rent out.. then base on psf rental let say rm2 like this lh can rent higher rate..

If good renting area.. lh is more on advantage coz buy cheaper, and I think rental doesn't care if it's lh or fh right? So u know what I mean? Lh are more advantage on this.. and if same location same, same BU, same features, the different is price and lh or fh, do u think rental will makes different? Like fh getting higher rental and lh getting lower rental? No right?

So my POI is, if future rental purpose lh still more advantage... coz lh definitely cheaper than fh, so u have more cost saving while rent out same as fh price..
wkkor
post Jul 29 2016, 04:40 PM

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Perhaps just let your wife to choose... so in future she don't "mengamuk"... lol...
SUSbalakong
post Jul 29 2016, 04:42 PM

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QUOTE(Cabinda @ Jul 29 2016, 04:38 PM)
Easy lar.. fh and lh, if by comparison, after stay for 5-10yrs, and dun want to sell and want to rent out.. then base on psf rental let say rm2 like this lh can rent higher rate..

If good renting area.. lh is more on advantage coz buy cheaper, and I think rental doesn't care if it's lh or fh right? So u know what I mean? Lh are more advantage on this.. and if same location same, same BU, same features, the different is price and lh or fh, do u think rental will makes different? Like fh getting higher rental and lh getting lower rental? No right?

So my POI is, if future rental purpose lh still more advantage... coz lh definitely cheaper than fh, so u have more cost saving while rent out same as fh price..
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But the price appreciation for freehold will be higher and the leasehold near to balance 50 below value is actually depreciate.
cherroy
post Jul 29 2016, 04:57 PM

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QUOTE(balakong @ Jul 29 2016, 04:42 PM)
But the price appreciation for freehold will be higher and the leasehold near to balance 50 below value  is actually depreciate.
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Price appreciation level is about the property location or the property is in demand or not.

A FH strata properties which is poorly maintained, management has no money due to poor maintenance fee collection, its condition will deteoriate quickly.
This kind of property won't fetch good valuation one.

Compared to a LH which is maintained in tip top condition, you don't need to guess which can fetch better value or having better price appreciation.

The appreciation in value is not solely on FH or LH.

Somemore most residential property has more than 50-70 years lease, and I will be no longer exist even the lease just being running down half of it. laugh.gif

Yes, you don't need to second guess everyone prefer FH, but at the same time, be more objective about LH as well.
As one may miss good opportunity to get good property (especially for own stay), just because of it is LH that already shy away from it.

As long as it is a "good" property, FH or LH is not that important.
Cabinda
post Jul 29 2016, 05:20 PM

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QUOTE(balakong @ Jul 29 2016, 04:42 PM)
But the price appreciation for freehold will be higher and the leasehold near to balance 50 below value  is actually depreciate.
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If fh appreciate means lh rental appreciate also mah.. Let say u buy at fh 400k, and u rent out 2k, then u sell to other ppl at 600k, then the other ppl if rent out 2k rugi lor.. Then he will rent out 2.8k, and as a lh property holder can follow trend increase to 2.8k, and last time this lh property buy at the price of 320k only.. So whose in long term advantage leh? Rental play, does it matter if the lease left how many years?
SUSempatTan
post Jul 29 2016, 05:28 PM

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QUOTE(CK15 @ Jul 29 2016, 04:17 PM)
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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I'm pretty sure u wrong. It's statewide. At least that's wat khalid ibrahim said, before he got kajang-moved... smile.gif

QUOTE(balakong @ Jul 29 2016, 04:19 PM)
Many friends and relative around me don't buy leasehold. I myself will hesitate to buy leasehold.
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Many malaysians speak like uneducated peasants. Pls dont listen to them. "LH no good lah." "Why ar?" "Becos LH mah!" "Oh ya hor"... Do u see d cycle of stupid reasoning ??!
aspartame
post Jul 29 2016, 05:30 PM

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QUOTE(cherroy @ Jul 29 2016, 04:57 PM)
Price appreciation level is about the property location or the property is in demand or not.

A FH strata properties which is poorly maintained, management has no money due to poor maintenance fee collection, its condition will deteoriate quickly.
This kind of property won't fetch good valuation one.

Compared to a LH which is maintained in tip top condition, you don't need to guess which can fetch better value or having better price appreciation.

The appreciation in value is not solely on FH or LH.

Somemore most residential property has more than 50-70 years lease, and I will be no longer exist even the lease just being running down half of it.  laugh.gif

Yes, you don't need to second guess everyone prefer  FH, but at the same time, be more objective about LH as well.
As one may miss good opportunity to get good property (especially for own stay), just because of it is LH that already shy away from it.

As long as it is a "good" property, FH or LH is not that important.
*
All your points make sense except "I no longer exist and so I dun care" argument. Surely, you are still concerned about the realisable value of the assets before you die. If u don't care, your heirs will care, and you will also want to pass down a property of higher value to them. Not only that, u do not know when u going to die, but the value of the property throughout your life time determines your net worth. Note: I am not arguing that FH definitely better than LH. It all depends on whether the discount is high enough to freehold and the potential of the area.
MeToo
post Jul 29 2016, 05:38 PM

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QUOTE(BEANCOUNTER @ Jul 29 2016, 10:13 AM)
I would never ever buy lishold landed for own stay.....
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Depends...

I'm upgrading right now planning for the "stay until old" kinda house...

So lease hold or freehold no difference to me.. 99 years my daughter also gone liao... who cares if no value later.. let my grandkids (if any) worry about it
CK15
post Jul 29 2016, 05:39 PM

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QUOTE(empatTan @ Jul 29 2016, 05:28 PM)
I'm pretty sure u wrong. It's statewide. At least that's wat khalid ibrahim said, before he got kajang-moved... smile.gif
Many malaysians speak like uneducated peasants. Pls dont listen to them. "LH no good lah." "Why ar?" "Becos LH mah!" "Oh ya hor"... Do u see d cycle of stupid reasoning ??!
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I hope you are right. biggrin.gif

SUSempatTan
post Jul 29 2016, 05:48 PM

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QUOTE(CK15 @ Jul 29 2016, 05:39 PM)
I hope you are right. biggrin.gif
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I'm v rarely wrong. biggrin.gif
CK15
post Jul 29 2016, 06:15 PM

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QUOTE(aspartame @ Jul 29 2016, 05:30 PM)
All your points make sense except "I no longer exist and so  I dun care" argument. Surely, you are still concerned about the realisable value of the assets before you die. If u don't care, your heirs will care, and you will also want to pass down a property of higher value to them. Not only that, u do not know when u going to die, but the value of the property throughout your life time determines your net worth. Note: I am not arguing that FH definitely better than LH. It all depends on whether the discount is high enough to freehold and the potential of the area.
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Just share my friend's view.
By end of the day. V all just need 2'×6' land. The value to properties are meaningless. Kids should be thankful if v left something for them. The kids should earn themself. V don't own anything for them.
I buy the idea.
aspartame
post Jul 29 2016, 06:47 PM

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QUOTE(CK15 @ Jul 29 2016, 06:15 PM)
Just share my friend's view.
By end of the day. V all just need 2'×6' land. The value to properties are meaningless. Kids should be thankful if v left something for them. The kids should earn themself. V don't own anything for them.
I buy the idea.
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Don't talk about the kids first. Talk about ourselves. Even if you do not plan to leave anything for the kids, isn't it better if the property is freehold and the value appreciates instead of going to zero. You never know. You might not want to stay there forever. With freehold properties, you can sell and move anywhere else you like. With leasehold, you can also sell but no value. Which is better? I prefer preservation of capital.
b00n
post Jul 29 2016, 06:49 PM

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An article wrote back in 2002 which still make sense subject to one willing to open up their mind.
http://www.hba.org.my/news/2002/1102/leasehold_fallacy.htm

To me personally FH vs LH is not really in my mind if I want to shop for a property. As we always say - location, location, location. But no one will entirely forgo the consideration of how many years left in the lease. No one of sane mind will not consider that.

If one gets to know the lease is only left with 10-20 years, or even 30-40 years; the next question to ask is, is the community already banding up to go for renewal of the lease.

Because most of the time we are only discussing about new project where most likely the lease is still fairly new - maybe 10 years into the entire tenure perhaps; so don't really care about whether it is lease of free.


To answer TS queries; if you want, you can go and try find out why for the different B/U - prices are similar. Who are the developers? Any difference in amenities etc...

This post has been edited by b00n: Jul 29 2016, 06:51 PM
b00n
post Jul 29 2016, 06:56 PM

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QUOTE(Jagalat @ Jul 29 2016, 04:15 PM)
Didn't see any affected freehold properties list from the link. Can enlighten further?
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Whether there are any precedence or not, am not sure. However when the law provides the avenue; you cannot say it will never happen.

QUOTE
Although this is not applicable to freehold properties, the ownership of freehold properties may be subject to Land Acquisition Act 1960 where the state government has the power to compulsorily acquire the property. The title holder will be compensated based on its market value.
Quoted from the below source which also contains the logical diff/pros and cons of FH vs LH
http://realproperty.my/freehold-vs-leasehold-properties


Article published by a solicitor firm on "Compulsory Land Acquisition in Malaysia, Compensation and Disputes"
Basically highlights the law does allow acquisition of Free Hold property by the government.
http://www.mahwengkwai.com/compulsory-land...ation-disputes/

This post has been edited by b00n: Jul 29 2016, 07:03 PM
b00n
post Jul 29 2016, 06:59 PM

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more recent article wrote on FH vs LH by imoney:
https://www.imoney.my/articles/freehold-vs-...is-a-better-buy

Another interesting read.

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