technically, after 80 years, the apartment is no longer your problem

Location is the ultimate factor to determine whether your property value appreciate or not, not freehold or leased hold.

My relatives, one bought free hold, one bought leased hold one,(same type of house), the free hold one only gain little bit but the leased hold one already 2x, --> reason --> location.

Yes. It is about location. Look at those house in Kepong. Leasehold but very expensive now and they are people paying good $$$ for it.

for me....get a freehold and then have a peace of mind for many many many many years to come...

If you are buying a "home", it does not matter much if it's a lease or free hold. For me, environment is top priority, convenience comes second. By the time you get old, your children also don't want to stay with you already. So what's the point you worry that after 30years, the house value going to drop? That time you should be retired and it is very unlikely you are going to move to a new home.

A home is not an investment. Please remember that.

it depends on situation. Either you buying it as a living in purpose or investment purpose? leasehold value usually hard to go up and may drop in value in coming years, but some of the best high rental properties is leasehold status, so you may analyze if its a good deal or not. You better go for freehold. Im in love with Sunway Palmville resort condo and its goin on price around 350k, but its a leasehold property, and that turns me off hugely.

I would agree that location overweights whether it's lease or free hold.
but after that, lease hold's prices will increases slower then free hold. So if you can go for free hold, you should, but make sure the location is excellent first!

would you buy a FH property in a good location if it commands the same rental amount? Example :

a. A 2+1 Parkview condo in KJ that cost approx RM260k

OR

b. A 2+1 10 years LH Kelana Puteri condo(also in KJ) accross the road that cost only RM175k?



Both command the same rental, which is about RM1.2k p/m. So which one would you guys buy for investment?

Guys,

for investment it doesn't really matter FH or LH , so long the rental is good enuf to cover the loan instalment (if any) and gives a positive cash flow and good % of return on invested amount .

in many occasion, LH will offer tht expected return due to lower capital invested in. anyway, with the current bloom of real estate industry , u will oso see some new LH property is priced more expensive than a FH which completed 5-10yrs ago. and i m talking about apartment/condo here since the discussion is about Renting not flipping.

It all boils down to value to it creates. For an example if a freehold house cost 600k and a smilar leasehold one cost 400k, you might as well get the leasehold house , use the extra money to get another apartment to rent it out. You have two properties and one generating cashflow. In the long run, you will make more money that way.

hi .. can someone give a summary ..

1. short term effect of leased and free hold.? let say in between 20-30 years from now..

2. is it true difficult to sell house of leasehold? let say having another 30-50 years lease?

ganz,
after reading the inputs above, i have to agree that we need to decide if it's for investment or if it's for you to stay urself...

if it's a home, personally i also think lease hold or free hold is no difference at all unless u have the mindset of leaving something behind for ur offspring...

if it's solely for your own purpose of staying...LH or FH doesn't matter anymore...unless ur confident u can outlive ur LH of 99yrs... somemore...doesn't mean after 99 yrs expire, you will be chased out of ur house immediately...i still see ppl staying at LH house keep on renewing their lease agreement...hehe....

Actually many lease hold property is not much cheaper.

ok thanks.. for time being .. it just solely for me only.. but maybe after 10-15 years.. got better income or any durian runtuh get a better house..

paying monthly installement for housing loan is a life time and almost 1/4 to 1/3 of my monthly salary...

it true that lease oso not cheap.. but what to do.. still cheap than freehold..

1. The effect come from property market and location, lease or free hold has not much effect on it as it 95% depend on location.

2. No, again it is depended on location. A property that has 30-50 years of lease won't have much problem of selling it (may be price can be bit lower). Only those below 20 years will see significant price differential. I forget how many years, banks don't like to lend money to those leasehold properties which has below 20 or 25 years (forget how many years already roughly like that)

Although there can be leasehold properties with high prices, they MUST be at good locations, and one example or 2 is not good enough for me to justify the equality between these 2 titles. And that's the only reason they can command higher price. Now imagine same location but there is a similar freehold development, which do you think will be better?

When you have a LH property, it's harder to sell or refinance as the tenure becomes less and less. And for me personally the peace of mind won't be there. If I want to have a family home to pass to my next generations (and I do), LH is out of the question. Also, I won't buy a LH property if it's less than 90 yrs left, unless the yield is very very good.

All things being equal, FH is ALWAYS better. Just a feeling that LH gives me the impression I'm living on a BORROWED place.

*So far the only places I've seen that have LH and FH concepts are Malaysia and Singapore (UK maybe?).

ok thanks for all info.. next step.. looking for a new house.. (victim of abandon project.. kekeke)

back to square one..why issit freehold is pricey than leasehold?..if you look the price itself, thats explained why investing in Freehold is better than leasehold, having said this, the comparison must be in the same area, coz buying property is all about location, location & location ...as top criteria to be considered in priority...

Be mindful that the property you investing in, you may either consider it for living, renting, or selling..area of concerns which hardly to determined coz it depending on the situation which almost beyond your control: marketibility, assessbility, speed of realization, enforcebility, salelability, etc..you understanding on how the property markets moving/trends would help you to determine this to expect what happen in the future, but, its merely projection, or expectation..you never know what happen in the future..

as for me, i want a property that belong to me for my next generation.at least , my future generation would appreciate what i've done for them, for better living..control over my own assets, under my name..which in worst case scenario if the government would like to take from me, they must compensate me with premium price or at least equivalent with the current value of my assets. Hence, i 'll go for freehold..

thank you..

no such thing.

If gov decides to take over the land, FH or LH is irrelevant. En-blok purchase is a diff story altogether

If I remember correctly, pai had mentioned something before regarding property for investment and I do agree with him on that one.
I.e. if you're relying on rental income, why pay a pricier price for a certain property that's FH?
But if one does property flipping, yes do agree that FH is still more appealing.