Just to clarify, in my previous post.
1) I was talking of residential property only (not commercial) and 2) I did mention that the homeowner needs to stay long term or pass on the property to their kids as a condition for the $1000 lease renewal. (not sale).


If LH is bad, matured leasehold townships like Kota Damansara, Bandar Sunway would be deserted, home prices there would be in free fall. The fact is, it is not the case with these townships.

If one is really uncomfortable with LH, please.... by all mean...stick with FH only (Canal City is not the place, go look some other places).
In a way, it helps the township by attracting genuine own stay home buyers only (rather than real estate speculators that plan to flip for profit).

This post has been edited by willyboy88: Sep 27 2019, 12:51 PM

Is the 1k renewal confirmed?? Bcos from now until expiry still many yrs to go, any protection on that renewal fee?

I nvr say LH is bad, especially in huge sustainable areas like sunway/kk. Notwithstanding, it just fall part of product positioning in entire property market. FH will stil hav upper hand for similar products situating not far from each another.

For the 1k renewal, the catch will be there regardless of own stay, naturally & eventually ppl would monetize it seeking upgrades to bigger/better house.

And not necessarily LH will help attracting genuine own stayers. Just look at IJM Bandar Rimbayu only, the profile would be 50% own stay vs 50% to sale/rent.

Anyhow I owned a landed unit in Canal City too, tho I didn't stay fully but feel that this is quite good living environment as compared to bustle areas in KV. Ppl ll slowly appreciate it.

you can refer to putra height, that will be a future of Elmina.

Canal city come with SRJK©, shopping malls, international schools, huge commercial area, and also nice club house . THe upper class lifestyle, you will never get it by your freehold land.

Hmmm what’s wrong with PH?

pricey place sure need pricey club house.. but does Elmina need fancy club to sustain???

here commercial area filled ady??? i tot only partly filled, can sustain??

The 1k renewal has been the law since 2011 for the state of Selangor.

You are right. The 1k renewal is introduced to help real owners/long term investors instead of flippers/short term investors.
I was referring to multi-generations homeownership, the practice of passing the home from one generation to the next generation. The owner dont really have to stay there. He can rent it out, leave it empty etc.
If the owner dont monetize it/sell it during his lifetime, the owner has the option to pay 1k (under current law) to extend the lease for another 99 years upon lease expiration and pass on the home to the next generation or the subsequent generations etc etc.
Land is getting scarcer by the day in Klang Valley. Over a long time horizon, land value and landed properties will appreciate in value.


That just show that, whether is it LH or FH while it is one factor to consider, it is not really too big a factor for these investors . Other factors are more important than the LH/FH factor.
As a matter of fact, some of the more impressive capital appreciation that we have seen in Klang Valley over the past 20-30 years are in leasehold townships like Kota Damansara, Bandar Sunway and certain leasehold areas in Klang Valley. It is really on a case by case basis. Not such thing as FH is 100% better than LH especially during the initial 10-30 years of capital appreciation period.

Congratulations on your new home. Yes, I agree with you. While it is not perfect at this moment , this area has lots of potentials and is a good place to call home. Other haters may disagree but who cares about them. It's our homes and our lives. Haha.

This post has been edited by willyboy88: Sep 27 2019, 10:26 PM

can state government change law and impose higher renewal fee, or removal of this 1k clause??? how to safeguard buyer interest, can extend the lease now for another 100years on top of current lease period????

Of course, rule and law can change over time. With most housing developments in Selangor are launched as Leasehold tenure nowadays and many more maturing Leasehold townships in Klang Valley.... I would see it as a political suicide if the political party (PH or BN) in charge plan to change this existing law.

This post has been edited by willyboy88: Sep 27 2019, 09:39 PM

Haha. Extend another 100 years on top of the existing 90 something years.?
How long you plan to live bro?
Life is short...Dont worry too much...go buy the house that you want to live (as long as u like the house, the location, the environment and you think is worth it for your money). LH or FH while it is important, but for a home that still have more than 70-90 years lease left, it is really nothing to worry about. At least for me . Haha

Even if it a property is under FH tenure, under the Land Acquisition Act 1960, the state can still take back freehold land if it is for public purposes, such as an MRT project, or economic development.
For example, the federal government acquired the land which the Ampang Park Shopping Centre was built on for the MRT project. If such an acquisition occurs, the owner will be paid the market value of the property.

And if this FH vs LH thing is really bothering you e.g. you cant get over it, go look for FH only. Good luck.

This post has been edited by willyboy88: Sep 27 2019, 10:40 PM

FH doesn't guaranteed a good market appreciation for your property. Example, Sri Muda Shah Alam around 10 km away from canal city.

If lease period left 70 yrs or below, i heard bank dun give 90% loan ady, maybe 80% or lower?? Harder to sell?

lol not? Why not survey those dsl that were selling 85k worth how much today?

Many made money during the boom when people were letting go at sub 200k and today the worst one worth 350k. That's average 40% YoY growth the past decade.

If seller plan to sell after 29 years(lease period left = 70 years), what the sellers can do in order to help the buyers to secure higher financing eg 90% loan is to top up the lease back 99 years prior to putting the house on the market.

The current premium rate of leasehold renewal in Selangor is based on the following formula:

0.25 x 0.01 x value of the land (in square feet) x (lease period – years remaining on the lease) x land area (in square feet)

In this case, the premium for renewal is 99 years -70 years left = 29 years ( seller dont have to pay the full 99 years premium; seller only need to pay 29 years premium only to top it up back to 99 years)

Example for a double storey terrace house:
If land area = 22ft X 75ft = 1650sqft,
If value of land = $100psf
Premium for lease renewal for 29 years = .25 X 0.01 X $100psf X 29 years X 1650sqft = $11,962
If value of land = $150psf, premium = $17,944
If value of land = $200psf, premium = $23,925

If sellers buy the house at today price of $750k , after 29 years, the conservatively assumed market value is $1.2 million. Capital appreciation is approx $450k
The premium for lease renewal can be small if we compared to the overall capital appreciation.
Another example, DSL leasehold house at Kota Damansara 15 years ago purchase price $250k ; Today average value $700k - $800k ; Average capital appreciation $500k - $600k . With these type of capital appreciation, I am sure most owners can afford to top up the lease back to 99 years by paying the 15 years premium if they really want to sell their home with a topped up 99 years lease period.


Sometimes, and most of the time, the seller can decide not to renew the lease before he sells.
This can be advantageous for the new buyer since the new buyer can take advantage of the $1k lease renewal premium if the new buyer plan to stay in the house for long term.

The market does not work that way bro. Its not fantasy football.

Thanks for the comment.
I am not a fan of fantasy football and I am not sure why you think that this is fantasy football.
These are common practice for leasehold homeowners.
Homeowners who wants to extend leases on their property can do so according to their choosing and there is no minimum number of years they need to wait before applying for lease renewal.
Sometimes,nowadays, the developers do this also prior to handing the new home to the buyers. e.g. to top up the lease period back to 99 years to account for the 2-3 years it takes for the new home construction.

This post has been edited by willyboy88: Sep 28 2019, 11:34 AM

That low renewal fees are for self stay. You need to pay back face value when selling. Read the fine print.

If it is for self stay, the lease renewal is $1k only and if the seller decide to sell later, he will have to pay the full premium which is calculated using the formula I have given above.

0.25 x 0.01 x value of the land (in square feet) x (lease period – years remaining on the lease) x land area (in square feet

If you dont understand, please ask.

lol, so smart, then you do know that beside theory city council or the state gov has the final say if they accept your renewal application? Lets say you have a 20y LH, which usually not accepted for renewal then valuer will put in risk factor at 80% of whatever value said property projected to have.