Many friends and relative around me don't buy leasehold. I myself will hesitate to buy leasehold.
Leasehold vs. Freehold - crossing point?
Leasehold vs. Freehold - crossing point?
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Jul 29 2016, 04:19 PM
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Junior Member
340 posts Joined: Jan 2013 |
Many friends and relative around me don't buy leasehold. I myself will hesitate to buy leasehold.
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Jul 29 2016, 04:23 PM
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Senior Member
4,146 posts Joined: Jan 2003 |
QUOTE(cherroy @ Jul 29 2016, 03:37 PM) The prime consideration is the property itself especially for own stay one. totally agree on this.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. If freehold condo come with huge deficit in management account vs top notch maintenance on leasehold condo, i will choose the later one. |
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Jul 29 2016, 04:24 PM
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Senior Member
930 posts Joined: Jun 2009 From: Somewhere I Belong... |
QUOTE(Jagalat @ Jul 29 2016, 04:12 PM) http://www.mymrt.com.my/en/ssp/project-info/land-acquisitionHere the list |
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Jul 29 2016, 04:25 PM
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Senior Member
1,473 posts Joined: Dec 2006 From: Paradise |
QUOTE(3sixty @ Jul 29 2016, 07:46 AM) Hi all well, if in doubt expensive one is betterI have been offered an option for two properties: 1) Freehold, 4 bedroom, 1800sqft 2) Leasehold (99 years remaining), 4 bedroom, 2300sqft same price but different size is already a guideline there are plenty of reasons to consider, have to give and take 2 cents |
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Jul 29 2016, 04:32 PM
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Senior Member
5,703 posts Joined: Oct 2013 |
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 |
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Jul 29 2016, 04:38 PM
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Senior Member
2,040 posts Joined: Sep 2014 |
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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Jul 29 2016, 04:40 PM
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#47
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Junior Member
493 posts Joined: Mar 2005 |
Perhaps just let your wife to choose... so in future she don't "mengamuk"... lol...
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Jul 29 2016, 04:42 PM
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Junior Member
340 posts Joined: Jan 2013 |
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.. But the price appreciation for freehold will be higher and the leasehold near to balance 50 below value is actually depreciate.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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Jul 29 2016, 04:57 PM
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Staff
25,759 posts Joined: Jan 2003 From: Penang |
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. 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. 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. |
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Jul 29 2016, 05:20 PM
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Senior Member
2,040 posts Joined: Sep 2014 |
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. 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? |
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Jul 29 2016, 05:28 PM
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Senior Member
1,678 posts Joined: Mar 2016 |
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. I'm pretty sure u wrong. It's statewide. At least that's wat khalid ibrahim said, before he got kajang-moved... Imagine, what premium to be paid 70 yrs later...? QUOTE(balakong @ Jul 29 2016, 04:19 PM) 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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Jul 29 2016, 05:30 PM
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Senior Member
3,165 posts Joined: Feb 2015 |
QUOTE(cherroy @ Jul 29 2016, 04:57 PM) Price appreciation level is about the property location or the property is in demand or not. 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.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. 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. |
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Jul 29 2016, 05:38 PM
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Senior Member
9,297 posts Joined: May 2009 |
QUOTE(BEANCOUNTER @ Jul 29 2016, 10:13 AM) 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 |
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Jul 29 2016, 05:39 PM
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Senior Member
1,457 posts Joined: Jul 2010 |
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... I hope you are right. 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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Jul 29 2016, 05:48 PM
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Senior Member
1,678 posts Joined: Mar 2016 |
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Jul 29 2016, 06:15 PM
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Senior Member
1,457 posts Joined: Jul 2010 |
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. 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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Jul 29 2016, 06:47 PM
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Senior Member
3,165 posts Joined: Feb 2015 |
QUOTE(CK15 @ Jul 29 2016, 06:15 PM) Just share my friend's view. 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.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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Jul 29 2016, 06:49 PM
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9,137 posts Joined: Jun 2007 From: Wouldn't be around much, pls PM other mods. |
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 |
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Jul 29 2016, 06:56 PM
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9,137 posts Joined: Jun 2007 From: Wouldn't be around much, pls PM other mods. |
QUOTE(Jagalat @ Jul 29 2016, 04:15 PM) 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 LHhttp://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 |
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Jul 29 2016, 06:59 PM
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9,137 posts Joined: Jun 2007 From: Wouldn't be around much, pls PM other mods. |
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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