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 Free or Lease Hold, How important it is ?

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SowYau
post May 29 2009, 03:23 PM

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QUOTE(youngman778 @ May 27 2009, 03:33 PM)
base on my little research, here's the understanding/finding of LH:
1) review (by authority) happen at year 60, 30 & 0
2) authority have right to take your land without ur consent, they will then compensate according to market value
3) you may start to apply for renewal once it touch 30 years or below, however renewal will definitely incurr land premium
disclaimer:
a) regarding either the market value or land premium, they alwayz have a veto said on the so call "decent value"
b) LOW market value & HIGH land premium is alwayz the case observed
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refer to the bolded part. Not quite true, our authority is not in fascism state, my dear. If u are not agree to their compensation amount, u can always engage a registered property valuer. U can appeal and challenge them if there are vast amount between your valuer's finding and authority's valuation dept's one.

please take note that whatever there are lands acquired by government, they will pay accordingto the market value. No that kind of "take it or leave it" offer.
eugene jk
post May 29 2009, 04:04 PM

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QUOTE(cic.lemur @ May 27 2009, 11:50 PM)
Leasehold may be fine if you're an investor or something, dealing in buying and selling property. But for normal people, for me it doesn't make sense. If you buy a house might as well get someting permanent so at least your kids get to inherit something worthwhile, from what I see, the price for leasehold and freehold not much difference.
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Sorry, cant agree with tat statement
tinkerbel
post May 29 2009, 04:09 PM

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@cic.lemur,
Act, in more developed places where freehold land is sparse, developers do put a premium on it.

The developer that's developing 14 units of bungalows in my neighbourhood has put a premium price to it since that's the last portion of freehold land. I've come to know the price starts from RM4m+
cic.lemur
post May 30 2009, 10:05 PM

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Well, probably you are right, my investigations were limited to only condo prices, but I realised that for condo it doesn't matter if leasehold or freehold, nobody would want to stay in a 100 year old condo, better to get a new condo and then sell off and get a good house when settled
ah liew
post May 30 2009, 10:45 PM

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if i plan to buy a house for future generations to come, then i'll choose freehold but it'll cost alot more than leasehold. but sadly nowadays children don't stay with their parents anymore after marriage.
cherroy
post May 31 2009, 05:25 PM

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QUOTE(cic.lemur @ May 30 2009, 10:05 PM)
Well, probably you are right, my investigations were limited to only condo prices, but I realised that for condo it doesn't matter if leasehold or freehold, nobody would want to stay in a 100 year old condo, better to get a new condo and then sell off and get a good house when settled
*
Yup, paying too much premium to own a freehold condo or aparment compared to a 99 years leasehold seems not worthwhile.

A landed property worth is its land, not its house built either.

Anything about freehold/leasehold is worth or not worth is about the land value, not the house itself.

Freehold generally are marketed or transacted at much high premium than leasehold, so it is very difficult to have a direct comparison which one is worthwhile or not.
As owning a freehold compared to cheaper same alternative leasehold, means you might be more stressful in paying up the monthly housing loan ended less saving, compared to antoher person (leasehold) paying less but ended more saving for other purposes (can be investment, doing business etc), which in the end of the day who is actually gain in this situation, it depends lot of factor and how well the person utilise the cash.
The one ended with leasehold properties but utilise the saving to do business or succeed in investment field can be much richer than the one owning a freehold properties even though the freehold properties price increased.
So there is no direct comparison or definite say which is better. It depends on individual situation, properties situation itself.
leongal
post Nov 2 2009, 11:39 AM

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freehold is more important to me;

1. It is easier to transact - for my own and future when I sell it (I heard that if it is leasehold, need at least 6 months)
2. The value will not deep as much as leasehold
teejoong
post Nov 2 2009, 01:59 PM

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same as above, i prefer freehold due to one more reaons.

- i'm 30, and it is high possibility for me to change home when my children grown up. Therefore, I will purchase freehold now and perhaps leasehold when i am 40 or 50 years old..


Tohsan
post Nov 2 2009, 02:49 PM

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QUOTE(murphyslaw @ May 7 2007, 11:33 PM)
Examples of good leasehold areas are Bandar puteri puchong, sunway mas and Damansara perdana. All prices hiked up like mad.
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Bandar Puteri Puchong is freehold, not leasehold. Yes, the price of the property there sky rocketed after IOI develop the area into a "wong" area. No body expect a used to be jungle area to be develop so much over a short period of time.


Added on November 2, 2009, 2:50 pm
QUOTE(leongal @ Nov 2 2009, 11:39 AM)
freehold is more important to me;

1. It is easier to transact - for my own and future when I sell it (I heard that if it is leasehold, need at least 6 months)
2. The value will not deep as much as leasehold
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leasehold nowadays mostly take 3 months if you hv lazy lawyer, freehold will be much faster.

This post has been edited by Tohsan: Nov 2 2009, 02:50 PM
leongal
post Nov 2 2009, 03:39 PM

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QUOTE(Tohsan @ Nov 2 2009, 02:49 PM)
Bandar Puteri Puchong is freehold, not leasehold. Yes, the price of the property there sky rocketed after IOI develop the area into a "wong" area. No body expect a used to be jungle area to be develop so much over a short period of time.


Added on November 2, 2009, 2:50 pm

leasehold nowadays mostly take 3 months if you hv lazy lawyer, freehold will be much faster.
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oh....actually i got this info from the agent....
Tohsan
post Nov 2 2009, 04:24 PM

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QUOTE(leongal @ Nov 2 2009, 03:39 PM)
oh....actually i got this info from the agent....
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looks like the agent is bs-ting u, i get my leasehold terrace house done in 1 months only. laugh.gif
atten
post Nov 3 2009, 12:03 PM

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QUOTE(teejoong @ Nov 2 2009, 01:59 PM)
same as above, i prefer freehold due to one more reaons.

- i'm 30, and it is high possibility for me to change home when my children grown up. Therefore, I will purchase freehold now and perhaps leasehold when i am 40 or 50 years old..
*
yeah ... i 'll do like too if i've a plan to sell the house later.

to me, will buy leasehold if i want to stay until i die ....bcoz price is much cheaper than freehold.

unless i really got plenty of moneyyyy

Tohsan
post Nov 3 2009, 02:34 PM

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QUOTE(atten @ Nov 3 2009, 12:03 PM)
yeah ... i 'll do like too if i've a plan to sell the house later.

to me, will buy leasehold if i want to stay until i die ....bcoz price is much cheaper than freehold.

unless i really got plenty of moneyyyy
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not all freehold property is expensive, it always depend on location, if u like kampung life,outskirt area freehold house are plenty and affordable.
abyss8
post Nov 3 2009, 02:50 PM

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Kulim area 5000 sf land size bungalow RM350k only...
hkway
post Nov 3 2009, 07:36 PM

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QUOTE(atten @ Nov 3 2009, 12:03 PM)
yeah ... i 'll do like too if i've a plan to sell the house later.

to me, will buy leasehold if i want to stay until i die ....bcoz price is much cheaper than freehold.

unless i really got plenty of moneyyyy
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When i plan to buy a first house , i bought second hand leasehold house with remaining 70 years, i though i will be staying there forever, doesn't matter FH ot LH, just buy it. But after 10 years, i change my mind and wanted to move to another place, then i hv hard time to get more buyers bcos they hard to get 90% loan, some of the banks not even want to consider with the reason of remaining 60 years of lease is the risk to them. Thus, i went to land office to ask for renewing my LH from 60 years to 99years but have to pay premium RM 5 per sq ft which cost me about 10k plus legal fees. The officer also said the premium is depend on area (premier area, rate higher) & the rates decided by their discretion and lucky my area not too expensive. (but still very troublesome to get thru all this). Eventually, i decided not to sell it and then rent it out even not at good rate.

wat i m trying to say here is most of us (in my opinion) cannot forsee what will happen in the future & ur need may change fr time to time. So no matter what for me FH is safer whether for staying or for investment, premium rate for LH for renewing may increased to very high after 20 or 30years later (i just guess only).



Tohsan
post Nov 3 2009, 08:12 PM

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QUOTE(hkway @ Nov 3 2009, 07:36 PM)
When i plan to buy a first house , i bought second hand leasehold house with remaining 70 years,  i though i will be staying there forever, doesn't matter FH ot LH, just buy it. But after 10 years, i change my mind and wanted to move to another place, then i hv hard time to get more buyers bcos they hard to get 90% loan, some of the banks not even want to consider with the reason of remaining 60 years of lease is the risk to them. Thus, i went to land office to ask for renewing my LH from 60 years to 99years but have to pay premium RM 5 per sq ft which cost me about 10k plus legal fees. The officer also said the premium is depend on area (premier area, rate higher) & the rates decided by their discretion and lucky my area not too expensive. (but still very troublesome to get thru all this). Eventually, i decided not to sell it and then rent it out even not at good rate.

wat i m trying to say here is most of us (in my opinion) cannot forsee what will happen in the future & ur need may change fr time to time. So no matter what for me FH is safer whether for staying or for investment, premium rate for LH for renewing may increased to very high after 20 or 30years later (i just guess only).
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tats why i always prefer freehold, never like leasehold especially when u "own" the house yet u hv to ask 3rd party(the gov) for consent,and u hv to pay for this so call "permission", totally ridiculous i felt.
babymiki
post Nov 6 2009, 02:38 PM

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is there any website which u can check on which area is of free or lease hold?
chinkw1
post Nov 6 2009, 09:16 PM

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Planning to buy a house double storey link somewhere in KotaKemuning or Puchong.
Any recomendation?

Around 300+K budget
Tohsan
post Nov 6 2009, 10:21 PM

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QUOTE(chinkw1 @ Nov 6 2009, 09:16 PM)
Planning to buy a house double storey link somewhere in KotaKemuning or Puchong.
Any recomendation?

Around 300+K budget
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Maybe u want to try Taman Wawasan 4 Puchong, freehold, its opposite Puchong Jaya Jusco.


Added on November 6, 2009, 10:25 pm
QUOTE(babymiki @ Nov 6 2009, 02:38 PM)
is there any website which u can check on which area is of free or lease hold?
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Maybe u try refer here www.iproperty.com.my the ads will state detail whether its freehold or leasehold.

This post has been edited by Tohsan: Nov 6 2009, 10:25 PM
T816B
post Nov 6 2009, 10:56 PM

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QUOTE(Tohsan @ Nov 6 2009, 10:21 PM)
Maybe u want to try Taman Wawasan 4 Puchong, freehold, its opposite Puchong Jaya Jusco.


Added on November 6, 2009, 10:25 pm

Maybe u try refer here www.iproperty.com.my the ads will state detail whether its freehold or leasehold.
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The ads are not 100% correct all the time. I have seen ads that have Mutiara Indah as Freehold, Bandar Puteri Puchong as Leasehold and so on. However, it does provide a good reference.



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