Feb 22 2024, 01:28 PM
QUOTE(PAChamp @ Feb 22 2024, 12:32 PM)
3 issues which kept me away from G. Cove - i) distance from PJ & traffic, ii) leasehold, iii) wetlands
Between leasehold and freehold - all other things being equal, choose freehold. Beyond that there is a tradeoff, such as location , price, amenities vs freehold. Banks do not give loans for leasehold property less than 50 yrs or the margin is lower. Thus when your property has 60 yrs left the price will start coming down. If you need to sell due to whatever issues, you take back less. If you need to sell within the 50yrs balance... you need to find cash buyer and sell dirt cheap. And your grandchildren will be hit with a double whammy - to renovate at the cost of buying a new house plus to renew lease at the cost of buying another new house.
Leasehold and freehold, all other things being equal, of course you will choose freehold la. But don't forget you are already paying a premium for the freehold status, which can be put to other uses like renovation and other investment. Between leasehold and freehold - all other things being equal, choose freehold. Beyond that there is a tradeoff, such as location , price, amenities vs freehold. Banks do not give loans for leasehold property less than 50 yrs or the margin is lower. Thus when your property has 60 yrs left the price will start coming down. If you need to sell due to whatever issues, you take back less. If you need to sell within the 50yrs balance... you need to find cash buyer and sell dirt cheap. And your grandchildren will be hit with a double whammy - to renovate at the cost of buying a new house plus to renew lease at the cost of buying another new house.
The location itself is more important than freehold/leasehold. Why worry about what's going to happen 60-70 years later, when you are no longer around?
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