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Free or Lease Hold, How important it is ?
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helload
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Apr 28 2013, 04:20 AM
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Getting Started

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Hi guys, sorry to bring this topic back up, I am in the middle of helping foreign investor to purchase an en-block property...
1 of their main concern is the Leasehold... I would like to know for those that have experience in buying and selling leasehold properties, will the price drop (maybe significantly) when the tenure has reached around 30 years left? Will they still earn from their initial buying price?
If any could kindly enlighten me on this, I would appreciate it very much, thank you!
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helload
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Apr 28 2013, 12:51 PM
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Getting Started

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QUOTE(Sikit2JadiBukit @ Apr 28 2013, 04:57 AM) find me a LH prop lower price than it was 10yr ago, and, if u can find one, the land title isn't the root cause. got your point, thank you for the feedback...
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helload
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Apr 28 2013, 01:06 PM
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Getting Started

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QUOTE(Chris Chew @ Apr 28 2013, 12:58 PM) The problem is quite significantly lies on the current lease tenure of the enbloc property. If the prop has 70 years tenure, it is deeply hard to predict or speculate the price whether it would be increase much further or drop by the time it reach 30 years tenure left, which is about 40 years to go on. A lot of things would be happen in this 40 years, which is a very very long term investment, and beyond the plan for most investors unless they plan to pass it to the next generation, which could even much unlikely for the foreign investors. The mass development, the future economic, the future currency, it is hard to determine the price would be increase or decrease, where a small example, RM 1mil today of 2013 vs RM 1.2mil after 40 years in 2053 is very big difference, although on paper it was appreciated by RM 200k and the loan tenure had been expired much longer by then. agreed, thanks for this, and I doubt also this foreign investors will still keep the project even above 10 years time, what I worried is that they might sell to someone from their country in the future, and ultimately give them a bad name if the property doesn't appreciate in value when it touches the (around) 30 years expiry...
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