want to clear a misconception that grew from here.

there is no such thing as leasehold and freehold having no difference for high rises. tell me, would you be interested towards purchasing a property that has its lease coming up for renewal soon? cause immediately after you settled the purchase price to do with the property, you have to pay out of your own pocket the renewal fees!!

hence, timing is very very important for this type of property investment. you definitely do not wish to be the last owner stuck with a leasehold property and having to pay the renewal fees nor facing the problem of no buyers because the lease is coming up or around the corner (to some, coming round corner can mean 80 years left or more).

and don't think the renewal fees are cheap as well. depending on title and location and others, the renewal fees can vary greatly and this comes out of your own pocket.

be aware of these risks and do your research properly before going for a leasehold

Allow me to humbly share my past experiences. I believe I have purchase leasehold properties and I have actually extended leases on my properties, so at least I know the process.

It is interesting to note that many of us here just talk and talk but had actually no idea how things work but PRESUME how it works.

These days, it is not worth talking about leasehold or freehold. Pai had said that at least leasehold have better returns and that I couldn't agree more. The government of Malaysia at least GUARANTEES the renewal of leasehold land especially in residentail areas. If you compared that with Singapore (where majority of the lands are 99years leasehold), which almost certainly takes the land back.

Let's take 99 years leasehold as an example. If your property is generating a good 10% yield, you should safely recover all your investments (cash outlay) within 5-8 years (10%-interests-10% deposit-legal fees-others) and thereafter hopefully generating good positive cash flow for you. So does it matter if it is leasehold or freehold?

If you are buying for own stay, let me ask you, how many of you actually stay in a property for 99 years? Everyone moves. Maybe 5 years, 10 or 20. So not much argument about freehold. Whatever premium the government charges, let me say for the following 99 years, you are more than able to receive all that you have paid out.

Renewing leases is quite a simple process which you need to surrender your title and then for the land office to approve the extension. Then you pay the stipulated premium and you have your title. Mine took a while longer as there were some people who wanted FREE extension and got political parties involved. However, thanks to them, I end up paying almost nothing for premium.

Speaking to the ADO, I was told that EVEN in the scenario that I did not renew my lease, it is not easy for the government to take back the land (although under the National Land Code, they have every rights to do so). Reason being very political and sensitive. But I do not advise anyone to play with fire. Make sure you are not the first in Malaysia to have your land taken back by the government.

Thank you.

I believe I have said this before, but I am going to say it again.

My leasehold property took 3 months to complete the transaction, while my freehold property took 4 months.